- Exam Code: BA4
- Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
- Updated: Oct 08, 2026
- Q & A: 660 Questions and Answers
CIMA Fundamentals of Ethics - Corporate Governance and Business Law : BA4 valid dump
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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| General Principles of the Legal System, Contract and Employment Law | 15% | - Legal system fundamentals - Contract law basics - Employment law essentials |
| Business Ethics and Ethical Conflict | 30% | - Ethical dilemmas and resolution - Nature and importance of ethics - Professional ethics principles |
| Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Corporate social responsibility (CSR) - Principles of corporate governance - Role of board and directors - Internal controls and audit |
| Company Administration | 10% | - Administration and management of companies - Types of business organisation |
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
Question #1
Which of the following is incorrect in relation to a reduction of capital by a private company?
- A. The company must pass a special resolution to authorize the reduction of capital.
- B. It is necessary for the company's Articles of Association to authorize a reduction of capital.
- C. The directors must make a solvency statement.
- D. The reduction may affect the company's creditors.
Correct Answer: B 🗳️
Question #2
Which of the following is INCORRECT in relation to an alteration of a company's articles of association?
- A. As long as the resolution to alter the articles is approved by 75% of the members of the company, it may require members to purchase additional shares.
- B. Any special resolution to alter the articles must be passed in good faith in the best interest of all the shareholders.
- C. Any special resolution to alter a company's articles of association may be passed by the members in a general meeting or by a written resolution.
- D. The articles may be amended by the members passing a special resolution.
Correct Answer: A 🗳️
Question #3
A advertised his van for sale in the local newspaper at a price of £5,000.
In which of the following situations is a contract between A and B created?
- A. B offered to buy the van for £4,800. A wrote to B accepting his offer. B wrote back stating: "payment will be made over three months."
- B. B offered to buy the van for £4,500. A wrote to B accepting his offer but later changed his mind and sent an email to B withdrawing his acceptance. The email was read by B before he read A's letter of acceptance.
- C. B wrote to A accepting his offer to sell the van for £5,000.
- D. B wrote to A and offered to buy the van at £4,800. B stated "if I hear no more from you in the next three days I shall assume that you agree to sell the van to me at that price." Three days have now passed and B has heard nothing from A.
Correct Answer: A 🗳️
Question #4
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
- A. The appointment of independent non-executive directors to the Board
- B. The separation of the roles of Chairman and Chief Executive
- C. The identification of an independent director as primary shareholder contact
- D. The establishment of a risk committee
Correct Answer: D 🗳️
Question #5
Jo is employed as management accountant of a large retailer. Jo has been asked to call a supplier and promise settlement of their account 'next week'. Jo is aware that her employer will definitely not have sufficient funds available to make the payment. If Jo accepts the request, which of the following
'fundamental principles' of CIMA's Code of Ethics will be compromised?
- A. Objectivity
- B. Confidentiality
- C. Integrity
- D. Professional behavior
Correct Answer: C 🗳️
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