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Free CIMA BA4 Practice Exam with Questions & Answers | Set: 10

Questions 136

Listed companies must comply with the Corporate Governance Code If they do not, which of the following penalties will apply?

Options:
A.

No formal penalty

B.

Penalty under the Corporate Governance Code

C.

Criminal penalty

D.

Civil penalty

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Questions 137

Ethical dilemmas may be raised with a professional accountant via which of the following routes?

Options:
A.

Via an external customer

B.

Via an in-house helpline

C.

Anonymously

D.

All of the above

Questions 138

Which of the following is not financial assistance for the purchase of a public company's own shares?

Options:
A.

A loan by a company outside the ordinary course of business

B.

Allowing the use of a company's assets as security for a loan

C.

The payment of a dividend which has the effect of putting a shareholder in funds and enabling him to purchase the company's shares

D.

Releasing a shareholder from a debt owed to the company

Questions 139

On 1st May Wye Ltd wrote to Zed Ltd offering to sell a machine for £20,000, and allowing Zed Ltd 7 days to consider the offer.

 

Which of the following statements is incorrect?

Options:
A.

Wye Ltd can withdraw the offer at any time before Zed Ltd has accepted.

B.

Wye Ltd is contractually obliged to keep the offer to Zed Ltd open for 7 days.

C.

If Zed Ltd accepts the offer by post on 4th of May, then there is a contract from 4th May.

D.

If Wye Ltd posts a revocation of the offer on 2nd of May which is received by Zed Ltd on 3rd May then the offer is withdrawn with effect from the 3rd May.

Questions 140

Which of the following statements is correct in relation to a public company limited by shares?

 

(i) A public company cannot commence trading until it has received a certificate from the Registrar of Companies confirming that it has satisfied the minimum requirements as to authorized and issued share capital.

(ii) If a public company commences trading without a trading certificate, and fails to meet its obligations, the directors may be held jointly and severally liable for those obligations.

(iii) A public company must have a minimum of one shareholder. 

Options:
A.

(i) and (ii) only

B.

(ii) and (iii) only

C.

(i) and (iii) only

D.

(i), (ii) and (iii)

Questions 141

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

Options:
A.

at least 6 months

B.

at least 9 months

C.

at least 2 years

D.

at least 3 years

Questions 142

Abel has just completed an audit on a large law firm. He has decided to issue a modified audit report with a qualified opinion due to the issues he discovered regarding misstatements in the company's financial records.

Why has Abel decided to issue the report with a qualified opinion as opposed a different kind?

Options:
A.

Because even though he has discovered material statements, he has not deemed them to be pervasive.

B.

Because he has found the misstatements to be both material and pervasive.

C.

Because he was unable to find enough suitable evidence to determine whether or not the misstatements were both material and pervasive.

D.

Because he has come to the conclusion that the misstatements aren't an issue, but should be noted in the report.

Questions 143

Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?

 

"A professional accountant should not allow bias, conflict of interest or undue influence of others to override professional or business judgments"

Options:
A.

Integrity

B.

Objectivity

C.

Professional competence and due care

D.

Professional behavior

Questions 144

Governance denotes the generic way an organization is run with particular emphasis on:

Options:
A.

Accountability, integrity, risk management

B.

Accounting, integrity, risk management

C.

Accountability, integration, financial management

D.

Accounting, integration, financial management

Questions 145

Which of the following is incorrect in relation to the memorandum of association when registering a company limited by shares?

Options:
A.

The memorandum must be in the prescribed form

B.

The memorandum must state the objects for which the company is being registered

C.

The memorandum must state that the subscribers agree to take at least one share each

D.

The memorandum must state that the subscribers wish to form a company under the Companies Act 2006

Questions 146

Which of the following statements would amount to indirect discrimination in the workplace?

Options:
A.

Applicants for a motor mechanic s position are only considered if they are male

B.

All employees in the sales departments are required to be smartly dressed and clean shaven

C.

Only women are promoted in the employee counseling department

D.

Employee X is not considered for an excellence award because she raised a complaint about sexist comments on the factory floor

Questions 147

How can a company help employees make the right decision when faced with a difficult situation?

Options:
A.

Offer guiding values and principles to underpin decision-making

B.

Threaten them with disciplinary procedures

C.

Give them a rule book

D.

Have a strong rules-based culture

Questions 148

Which of the following is incorrect?

(i) All contracts must be in writing.

(ii) A contract to sell land must be in writing.

(iii) A contract of employment must be in writing.

Options:
A.

(i) only

B.

(i) and (iii) only

C.

(ii) and (iii) only

D.

(i), (ii) and (iii).

Questions 149

Which of the following sources of law is not binding upon the Supreme Court?

Options:
A.

A Statutory Instrument.

B.

A European Council regulation.

C.

A previous decision of the House of Lords.

D.

A provision in an Act of Parliament.

Questions 150

Company C got rid of a director because his interests failed to align with the shareholders'.

They've recently hired a new director, and they are keen to avoid a repeat scenario.

Which of the following could the company do to ensure the new director works with the best interests of shareholders in mind?

Select ALL that apply.

Options:
A.

Give bonus payments to the director when he hits the company's targets.

B.

Implement an incentive scheme to reward the director when he works in line with the interests of shareholders.

C.

Ensure the deliverance of a detailed and comprehensive Chairman's message.

D.

Widen the remit of the governance report to includes details about the the company's strategy, business model and risks.

Exam Code: BA4
Certification Provider: CIMA
Exam Name: Fundamentals of Ethics, Corporate Governance and Business Law
Last Update: Jul 19, 2025
Questions: 661

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