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CIMA Fundamentals of Ethics - Corporate Governance and Business Law : BA4 Exam

BA4 actual test
  • Exam Code: BA4
  • Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
  • Updated: May 30, 2026
  • Q & A: 660 Questions and Answers
  • PDF Demo
  • PC Test Engine
  • Online Test Engine
  • Total Price: $59.99  

About CIMA Fundamentals of Ethics - Corporate Governance and Business Law : BA4 Exam

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CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

1. Tee Ltd has contracted to use Vee Ltd's "Grand Hotel" for a business conference. Which of the following would not be regarded as a valid excuse for Vee Ltd for the unavailability of the hotel on the agreed date?
(i) The hotel was closed due to flood damage.
(ii) The hotel was double booked.
(iii) The hotel manager had arranged to have the hotel redecorated; the decorators had failed to complete the work by the agreed date.

A) (i) only
B) (i), (ii) and (iii)
C) (iii) only
D) (ii) and (iii) only


2. Which of the following is correct?
(i) The Court of Appeal is bound by obiter dicta of the Supreme Court.
(ii) The High Court is bound by a Supreme Court ratio decidendi.
(iii) A ratio decidendi of the Court of Appeal is binding on the High Court.

A) (i) only
B) (i) and (ii) only
C) (ii) and (iii) only
D) (i), (ii) and (iii).


3. Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?

A) Observation
B) Obedience
C) Objectivity
D) Obsession


4. Which of the following is INCORRECT in relation to directors' duties?
i. Directors who arrange for shares to be offered directly to their supporters in order to prevent a take- over bid are acting lawfully so long as they have the legal power to allot shares in the company's constitution.
ii. Directors may act in breach of their duties and still be complying with the UK Corporate Governance Code.
iii. Directors' duties are owed to the shareholders as a body and enforceable by the company.

A) (i) only
B) (i) and (ii) only
C) (ii) only
D) (ii) and (iii) only


5. Decklt is a skateboard manufacturer that is ethically run and has a good reputation.
However, it has just transpired that one of their suppliers - with whom they have a good relationship with due to their cheap prices - is involved in a serious fraud case.
What should Decklt do?

A) Immediately cut all ties with the company and look for a different supplier.
B) Stick with the supplier as they won't be able to find cheaper prices elsewhere.
C) Immediately cut all ties with the supplier and discontinue all products that are made using their materials.
D) Stick with the supplier but let the relevant regulatory bodies know that Decklt had nothing to do with their illicit activity.


Solutions:

Question # 1
Answer: D
Question # 2
Answer: C
Question # 3
Answer: C
Question # 4
Answer: A
Question # 5
Answer: A

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