Free CIMA BA4 Practice Exam with Questions & Answers | Set: 13

Agency theory is often cited as an explanation for the development of corporate governance Which TWO of the following statements are correct?

Which of the following is incorrect in relation to the criminal law?

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"

Jimmy wants to sell his scooter, so he puts an advert on the internet with a price of £50.

He quickly gets an offer for the full amount, but then decides that he doesn't want to sell his scooter after all!

The buyer complains and threatens to report jimmy to the police.

This doesn't worry Jimmy as he knows he is not legally obliged to sell his scooter. Why is this?

Stefan takes his car to the local Car wash to get it cleaned. However, when he comes back an hour later, he finds that, although the car has been cleaned, the car has also been damaged, with scratch marks running

down all of the left side.

What type of term applied to this situation:

Who is bound by the articles of association?

In Germany the two-tier board structure is used by many limited liability companies. A two-tier board structure is made up of a Management Board and which other organ?

Which of the following is correct in relation to a company's ability to have a restricted objects clause in its constitution?

(i) A company may restrict its objects in its constitution

(ii) Any clause restricting the company's objects should be included in the company's articles of association

(iii) The shareholders may pass a special resolution to alter the company's constitution by including a clause which restricts the company's objects

S is assistant management accountant for a large telecommunications company. S has become aware that the company is offering different levels of discount to different corporate customers. S is concerned that this is unethical, so she mentioned it to the Finance Director during her most recent appraisal. The Director seemed amused at S's concern, and said that such a situation was 'perfectly normal'.

Which ONE of the following would it be appropriate for S to do?

Independence of mind allows a professional accountant to:

J and K are the only shareholders in JK Ltd, each holding 500 fully paid ordinary £1 shares. J is the company's only director and K the company secretary. The company has been placed in creditors’ voluntary liquidation on the grounds that it is unable to pay its debts.

Which of the following is correct?

P is an accountant working in a business Which of the following circumstances might create a self-interest threat for P in her professional role?

Pascal later heads off to the party where he proceeds to tell everyone about his amazing first day at work and the huge profits his new company are making and how much he's already saved them. "My future is bright"

he tells everyone!

Again, Pascal has breached CIMA's ethical principles.

Which of the following has he breached?

Select ALL that apply.

Which of the following is an 'interest stakeholder' in an organization?

Which of the following is normally implied into a contract of employment?