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

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CIMA BA4 Exam Syllabus Topics:

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

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

2. Which of the following statements is correct in relation to business organisations?

A) Although a public company may offer its shares and securities to the general public it can only do so if it is listed on a stock exchange
B) A limited liability partnership is a separate legal entity distinct from the partners in a similar way to how a private company is a legal entity distinct from its shareholders and directors
C) In the event of a company limited by shares going into insolvent liquidation the shareholders become fully liable for the debts of the company
D) A general partnership and a private limited company can be formed without the need for any written documents

3. GHI Ltd has contracted with JKL Ltd. If JKL Ltd acts in breach of a condition, which of the following is correct?

A) GHI Ltd may terminate the contract but cannot also claim damages.
B) GHI Ltd may terminate the contract and sue for damages.
C) The contract between GHI Ltd and JKL Ltd is automatically terminated.
D) GHI Ltd is entitled to damages only

4. AB (Wholesalers) Ltd contracted to sell a quantity of television sets to DC (Retailers) Ltd. The contract contained a term excluding liability for any breach of the condition implied by the Sale of Goods Act
1979 that the goods should comply with their description.
Which of the following is correct?

A) The term is void.
B) The term is void unless it can be shown to be reasonable, as this is a non-consumer sale.
C) The term is illegal as it is a criminal offence to attempt to exclude any terms implied by the Sale of Goods Act 1979.
D) The term is absolutely valid as it has been agreed by the parties to a non-consumer sale.

5. Which of the following may cause a director to be disqualified from acting as a director under the Company Directors Disqualification Act 1986?
(i) Persistent default by the director in complying with the filing requirements under the Companies Acts.
(ii) Causing a company to continue to trade at a time when the director ought to know that insolvency is inevitable.
(iii) Carrying on business with intent to defraud creditors.

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

Solutions: