Free CIMA BA4 Practice Exam with Questions & Answers | Set: 4

In relation to the Unfair Contract Terms Act 1977, which of the following is correct?

(i) A clause which attempts to exclude liability for death or personal injury caused by negligence is only valid if it is reasonable.    

(ii) A clause which attempts to exclude liability for damage to property is void unless it is reasonable.

(iii) The Unfair Contract Terms Act applies to contractual terms and to occupiers' liability.    

T, a Sales Representative of E plc, made an appointment to see you in the hope of persuading you to place a substantial order with E plc. During your discussions, T suggested that you could qualify for a cash bonus in the event of an order being placed.

Which of the following is correct? 

(i) Placing an order in these circumstances will place you in breach of your employment and professional obligations.

(ii) If the goods are what your company requires and are priced competitively, you are acting correctly in placing an order and qualifying for the cash bonus.

(iii) You have been placed in a conflict of interest situation and you should not proceed to place an order.

Which of the following are qualities the CIMA accountant are expected to display and develop? Select ALL that apply.

Which of the following describes the aim of corporate governance initiatives?

Which of the following is correct in relation to damages?

(i) The victim of a breach of contract may claim damages in respect of losses caused by the breach which were within the contemplation of the contract breaker.

(ii) As a general rule damages cannot be claimed for annoyance and inconvenience caused by the breach of contract.

(iii) Where there is a breach of contract, damages are available to the innocent party as of right.

Which of the following statements is INCORRECT? 

i. A contract is a voluntary agreement whereas obligations in the tort of negligence are imposed by the state.

ii. Damages are only available for breach of contract and breach of the tort of negligence if damage, injury or loss has been suffered by the claimant.

iii. A contract breaker is liable whether or not he is at fault whereas to be liable in the tort of negligence the defendant must have been at fault.

A, B C and D are sole directors and shareholders of EFG Company each holding 25% of the shares in the company. The articles of association

of EFG Company state that "the directors cannot enter into any contract on behalf of the company exceeding $30,000 without the agreement of all the shareholders’’.

B contracted on behalf of the company for $40,000 with Y Company without the agreement of the other shareholders. Which of the following is correct?

1. Y Company may enforce the contract against EFG Company

2. A, C and D may obtain an injunction to stop the contract being canted out

3. B may be liable to EFG Company for breach of duty.

Advocacy threats to compliance with fundamental principles are described as threats that may occur

You are the financial controller of SB Company, responsible for directing the budgeting process For the current year, you were instrumental in gaming approval of a particular manager's budget without modification. As a token of appreciation, the manager has given you a gift voucher for a local restaurant In considering whether or not to accept the gift, you should refer to which of the following fundamental ethical principles?

Which of the following has overall responsibility for enforcing the Health and Safety at Work Act 1974 and its related legislation?

i. The Health and Safety Commission

ii. The Health and Safety Executive

iii. The Health and Safety Inspectorate

To which of the following contracts does the Supply of Goods and Services Act 1982 apply?

(i) A contract with a joiner for the manufacture and supply of a cabinet.

(ii) A contract for the hire of a car.

(iii) A contract with a builder to construct an extension to a house.

Which of the following is correct?

When might an ethical dilemma occur?

After the Companies Act 2006, which of the following is correct in relation to a reduction of capital by a public company?

(i) If the reduction results in the company no longer having the authorized minimum capital for a public company, it may be necessary to re-register as a private company.

(ii) The Articles of Association may restrict the company's ability to reduce capital.

(iii) The reduction must be approved by the court.

The Remuneration Committee is recognised as a board sub-committee under the Corporate Governance Code Which of the following are objectives of the Remuneration Committee?

1. The Committee should be, and should be seen to be, independent with access to its own external advice or consultants

2 The Committee is required to establish and agree pension provision for all board members

3. The Committee's reporting is clear, concise and gives the reader of the annual report a bird's eye view of policy payments and the rationale behind

them