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

  • Exam Code: BA4
  • Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
  • Updated: Sep 19, 2026
  • Q & A: 660 Questions and Answers

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CIMA BA4 Exam Syllabus Topics:

SectionWeightObjectives
General Principles of Legal System, Contract and Employment Law15%- Business law fundamentals
  • 1. Contract formation and enforcement
    • 2. Employment law basics
      • 3. Legal systems and sources of law
        Company Administration10%- Corporate legal administration
        • 1. Corporate compliance and filings
          • 2. Company formation and structure
            Business Ethics and Ethical Conflict30%- Ethical principles and professional behaviour
            • 1. Ethical dilemmas and conflict resolution
              • 2. Professional independence, objectivity, and integrity
                • 3. Nature of ethics and values in accounting
                  Corporate Governance, Controls and Corporate Social Responsibility45%- Corporate governance framework
                  • 1. OECD principles and governance codes
                    • 2. Role of boards and directors
                      - Corporate social responsibility
                      • 1. CSR principles and sustainability reporting
                        - Internal controls and audit
                        • 1. Risk management and control systems
                          • 2. Internal audit and external audit roles

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

                            Question #1

                            Which of the following is CORRECT in relation to a Limited Liability Partnership ("LLP")?
                            (i) An LLP is formed by registration with the Registrar of Companies
                            (ii) Unlike the articles of a company the internal rules of an LLP are not available for public inspection (iii) An LLP is liable to pay corporation tax on its profits

                            • A. (i), (ii) and (iii)
                            • B. (ii) and (iii) only
                            • C. (i) only
                            • D. (i) and (ii) only
                            Reveal Solution  Discussion  0

                            Correct Answer: D  🗳️

                            Question #2

                            In relation to international regulations, which of the following is correct?
                            i. International regulations seek to establish common standards between professions practicing in different States so as to further international cooperation and agreement.
                            ii. International regulations agreed by the professional bodies of different States have the force of international law.
                            iii. International regulations which harmonies standards and procedures may be incorporated into contracts by commerce and the professions.

                            • A. (i) and (iii) only
                            • B. (i), (ii) and (iii)
                            • C. (i) only
                            • D. (i) and (ii) only
                            Reveal Solution  Discussion  0

                            Correct Answer: A  🗳️

                            Question #3

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

                            • A. Professional behavior
                            • B. Professional belief
                            • C. Professional bias
                            • D. Professional bearing
                            Reveal Solution  Discussion  0

                            Correct Answer: A  🗳️

                            Question #4

                            Which TWO of the following are the characteristics of a framework driven by values, principles and ethics?

                            • A. Detection
                            • B. Mandatory
                            • C. Implicit
                            • D. Discretionary
                            Reveal Solution  Discussion  0

                            Correct Answer: C,D  🗳️

                            Question #5

                            Which of the following statements is correct?
                            (i) An employer may rely on information discovered after an employee's dismissal to justify a wrongful dismissal.
                            (ii) An employer may rely on information discovered after an employee's dismissal to justify an unfair dismissal.
                            (iii) An employment tribunal will take into account the employee's conduct when determining how much compensation for unfair dismissal to award.

                            • A. (iii) only
                            • B. (i) and (iii)
                            • C. (i) and (ii)
                            • D. (i) only
                            Reveal Solution  Discussion  0

                            Correct Answer: B  🗳️

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