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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 INCORRECT in relation to the board of directors of a private company limited by shares?

A) The board cannot delegate its authority
B) If there are an equal number of votes for and against a proposal before the board the negative views prevail and the proposed resolution is defeated
C) The board may reach a decision by written resolution
D) The board reaches its decisions by majority vote

2. Which of the following statements is incorrect in relation to written resolutions?

A) A written resolution is only valid when it has been signed by all those who were entitled to attend and vote at company meetings.
B) A written resolution can be used in place of an ordinary or special resolution.
C) In most cases, a written resolution may be used instead of holding a general meeting.
D) Written resolutions may only be passed by private companies.

3. IFAC member firms or bodies:

A) Are entitled to use the IFAC Code of Ethics as an optional approach for their own organization
B) Must, by law, adhere to the IFAC Code of Ethics
C) Must not apply less stringent standards than those stated in the IFAC Code of Ethics
D) Must prosecute any individual who fails to adhere to any part of the IFAC Code of Ethics

4. Which of the following is correct?
(i) A contract of guarantee is unenforceable unless it is evidenced in writing.
(ii) A contract to sell land must be in writing.
(iii) A contract of employment must be in writing.

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

5. Which of the following is correct in relation to the purchase by a company of its own shares?
(i) If a company wishes to purchase its own shares it must have authority in its Articles of Association.
(ii) A private company may purchase its own shares out of capital.
(iii) It is not possible for a company to purchase all its own shares.

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

Solutions: