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Free CIMA BA4 Practice Exam with Questions & Answers | Set: 12

Questions 166

Section 14 of the Sale of Goods Act 1979 implies a condition into contracts for the sale of goods that the goods supplied will be of “satisfactory quality.” Exe inspected and purchased a new car. After travelling only 25 miles the engine seized up due to a latent defect. The manufacturer offered to repair the car in accordance with the guarantee but Exe has demanded a full refund.  

 

Which of the following is correct?

Options:
A.

Exe is entitled to a full refund of the purchase price

B.

As Exe had the opportunity to inspect the car he cannot rely on Section 14 of the Sale of Goods Act 1979 and is not entitled to a full refund

C.

As Exe has a manufacturers guarantee he is obliged to comply with his contract and have the car repaired

D.

Exe has used the car to travel 25 miles and cannot therefore obtain a full refund of the purchase price

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Questions 167

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

Options:
A.

Constancy

B.

Confidentiality

C.

Contemplation

D.

Conviction

Questions 168

CIMA's Code of Ethics would be violated if a professional accountant accepted a fee for work which is:

Options:
A.

fixed by a company's ethics committee

B.

based on a quotation fixed in advance of the work being earned out

C.

payable once a specified finding has been attained

D.

based on a price quotation submitted in competitive bidding

Questions 169

A was disqualified from driving but continued his employment as a driver for XYZ plc. The company discovered that A had lost his driving license and immediately dismissed him without notice.  

 

Which of the following is correct? 

 i. As no notice was provided A's dismissal amounts to constructive dismissal.

ii. The employer was justified in dismissing A without notice as he was unable to continue his employment.

iii. A may make a claim for wrongful dismissal as, although his dismissal was justified, he was entitled to notice.  

Options:
A.

(i) only

B.

(ii) only

C.

(i) and (ii) only

D.

(iii) only

Questions 170

DGH is a company operating in the oil and gas industry, which is heavily regulated. The government is considering introducing a new law which is likely to result in a dramatic cut in profitability for DGH.

Which of the following is NOT a legitimate method for DGH to influence government policy in its own best interests?

Options:
A.

Employing lobbyists to put DGH's case to ministers or civil servants.

B.

Offering financial incentives to public officials to use their influence on DGH's behalf

C.

Attempting to influence public opinion in order to put pressure on the legislative agenda

D.

Inviting government ministers to attend the next board meeting of DGH to allow the directors to put forward their view

Questions 171

The Professional Accountant should always:

Options:
A.

Think objectively; act professionally; continue to learn and develop

B.

Think subjectively; act professionally; continue to question

C.

Think professionally; act personably; continue to question

D.

Think accurately; act purposefully; continue to learn and develop

Questions 172

One of your colleagues has just been poached by a competitor. You have reason to suspect that he has provided his new employer with sensitive information about your company that could disadvantage your employer. This affects the CIMA Code of Ethics fundamental principle of:

Options:
A.

Responsibility

B.

Respect

C.

Confidentiality

D.

Cooperation

Questions 173

Which of the following is incorrect in relation to a reduction of capital by a private company?

Options:
A.

The company must pass a special resolution to authorize the reduction of capital.

B.

The reduction may affect the company's creditors.

C.

It is necessary for the company's Articles of Association to authorize a reduction of capital.

D.

The directors must make a solvency statement.

Questions 174

Which of the following is an example of a safeguard created by the profession, legislation or regulation as opposed to a safeguard in the work environment?

Options:
A.

Leadership of the organization which stresses the importance of compliance with the fundamental principles

B.

Leadership of the organization which establishes the expectation that members of an assurance team will act in the public interest

C.

Professional standards

D.

An organization having documented internal policies and procedures requiring compliance with the fundamental principles

Questions 175

Which of the following might a company experience if they were to implement internal control measures?

Select ALL that apply.

Options:
A.

Reduced risk

B.

More control

C.

A requirement to hire external auditors

D.

Less paper work

E.

Less bureaucracy

Questions 176

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

Options:
A.

The information in the objects clause in the memorandum of a company registered before the Companies Act 2006, is treated as part of the company's articles of association

B.

The name of the company must still be specified in the memorandum

C.

The memorandum must state the company's authorised share capital

D.

The country in which the company is to have its registered office must be specified in the memorandum

Questions 177

Which THREE of the following are characteristics of Limited Liability Partnerships ("LLPs")?

Options:
A.

LLPs can enter into contracts in their own name

B.

LLPs have no perpetual succession

C.

An LLPs partners are jointly and severally liable for the debts of the LLP

D.

LLPs can hold property in their own name

E.

LLPs are usually created by formal registration under statute

Questions 178

Which of the following are fundamental characteristics of useful information? Select ALL that apply.

Options:
A.

Relevance

B.

Faithful representation

C.

Understandability

D.

Verifiability

E.

Comparability

F.

Timeliness

Questions 179

Which of the following is incorrect?

Options:
A.

An invitation to treat is a call to start negotiations.

B.

A person must know of an offer before he can accept it.

C.

An acceptance is ineffective unless it is communicated to the offeror by the offeree personally.

D.

An agreement is not binding in English law unless it is supported by consideration or contained in a deed.  

Questions 180

Which of the following statements is correct? 

(i) In the event of a conflict between English Law and European Law, English Law prevails.

(ii) The Supreme Court is the highest court in the United Kingdom.

(iii) The High Court is bound by a ratio decidendi of the Supreme Court.  

Options:
A.

(ii) and (iii) only

B.

(i) and (iii) only

C.

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

D.

(i) and (ii) only

Exam Code: BA4
Certification Provider: CIMA
Exam Name: Fundamentals of Ethics, Corporate Governance and Business Law
Last Update: Jul 11, 2025
Questions: 661

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