Free CIMA BA4 Practice Exam with Questions & Answers | Set: 3

Sam is the director of a large company.

He has recently come under pressure from shareholders who are keen to seen an increase in the company's share price.

If he is able to do this, what will the most likely benefit be?

Allowing bias, conflict of interest or undue influence of others to override professional or business judgments violates the CIMA Code of Ethics fundamental principle of:

Which of the following is incorrect in relation to the remedy of damages?

What is the purpose of the equitable remedy of rescission?

Which of the following is correct?

In which country are accountants legally required to speak up about certain ethical concerns?

You work for a manufacturing company and are told that one of the line managers made a genuine mistake that led to the discharge of waste material into a local river. Your managing director says that the company cannot afford a large fine and demands that no one reports the waste spillage or mentions it again. Is this an ethical issue and why?

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

In furtherance of their duty to promote the success of the company under Section 172 of the Companies Act 2006, the directors are required to take account of amongst others, the company and its members, employees and suppliers.

Which of the following can enforce this duty against the directors?

The holders of a certain minimum percentage of a company's issued share capital are entitled to require the company to circulate a written statement to those entitled to receive notice of the next annual general meeting. What is that minimum percentage?

Which of the following is correct? 

(i) The purpose of the criminal law is to regulate behavior within society.

(ii) The purpose of the civil law is to enable injured persons to obtain a remedy against the wrongdoer.

(iii) A breach of the criminal or civil law can result in the defendant being fined.

In relation to the company secretary which of the following is correct? 

(i) A public company must have a company secretary who is appropriately qualified

(ii) A member of CIMA is qualified to act as a company secretary

(iii) A private company may choose to have a company secretary and if so he/she must be appropriately qualified

You are happy to be held accountable for your actions and hope that others can trust and depend upon you. Which TWO of the personal qualities identified by the CIMA Code of Ethics does this demonstrate?

Anne, Bill, Chris and Diane are the only directors of ABCD Ltd. Bill is the Chairman of the board and has a casting vote. A board meeting was called to consider a proposal to enter into a contract with EFG Ltd. Which of the following is INCORRECT?

S contracted to buy a portable television from AB (Retailers) Ltd. The contract contained a term excluding liability for any breach of the condition implied by the Sale of Goods Act 1979 that the goods should be of "satisfactory quality".

Which of the following is correct? 

(i) It is a criminal offence to attempt to exclude the term as this is a consumer sale.

(ii) The clause is void unless it can be shown to be reasonable.

(iii) The clause is void.