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

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CIMA BA4 Exam Syllabus Topics:

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

1. As a general rule, what period of continuous employment is required before a person can make a claim for unfair dismissal?

A) at least 2 years
B) at least 6 months
C) at least 9 months
D) at least 3 years

2. Z Ltd intends to participate in a "substantial property transaction" with one of its directors. Which of the following is correct in relation to substantial property transactions?
(i) The value of the asset must exceed 10% of the company's net assets and be more than £5,000.
(ii) The transaction must be approved by the shareholders.
(iii) The director must disclose his interest in the transaction.

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

3. A, B C and D are sole directors and shareholders of EFG Company each holding 25% of the shares in the company. The articles of association of EFG Company state that "the directors cannot enter into any contract on behalf of the company exceeding $30,000 without the agreement of all the shareholders''.
B contracted on behalf of the company for $40,000 with Y Company without the agreement of the other shareholders. Which of the following is correct?
1. Y Company may enforce the contract against EFG Company
2. A, C and D may obtain an injunction to stop the contract being canted out
3. B may be liable to EFG Company for breach of duty.

A) 1 and 3 only
B) 1,2 and 3
C) 1 only
D) 1 and 2 only

4. Which of the following statements suggests that A is an employee in relation to the work he carries out for BCD Ltd?
i. He is required to provide his own tools.
ii. He is required to carry out his work personally and is not free to send a substitute.
iii. He is in receipt of pay after income tax has been deducted under PAYE.

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

5. Which of the following statements is incorrect?

A) A term may be implied into a contract on the basis of previous dealings between the parties.
B) A term will be implied into a contract wherever a court considers that it would be reasonable to do so.
C) A term may be implied into a contract on the basis of a trade custom.
D) A term may be implied into a contract by statute.

Solutions: