Free CIMA BA4 Practice Exam with Questions & Answers | Set: 7

CIMA's report on 'Practical Proposals to Improve Corporate Governance Disclosure' explores a range of ideas Which of the following statements is correct?

Which of the following statements is correct in relation to a misrepresentation?

Which of the following does the IFAC Code of Ethics establish?

Which of the following is correct in relation to Section 14 of the Sale of Goods Act 1979 which implies a term into contracts for the sale of goods that the goods supplied will be of “satisfactory quality.”

(i) A breach of Section 14 enables the innocent buyer to cancel the contract and claim damages.

(ii) The parties to a contract for the sale of goods can choose to exclude Section 14.

(iii) Section 14 applies to contracts for the sale of new goods only and does not apply to sales of second-hand goods

Which of the following requires the approval of a simple majority of all the company's shareholders who are entitled to vote?

You work for an international mining company. Which of the following corporate issues is NOT related to ethics or social responsibility?

In relation to the law of misrepresentation, which of the following is correct?

AD company has recently appointed you as the head of their internal audit department and the head of the risk management committee. The internal audit department consists of a team of ten full time staff and other finance and IT staff are appointed into the internal audit team on an ad hoc basis as required. The rail time staff are all qualified accountants, some with CIMA and some with other professional bodies.

The company prefers to keep the full time staff complement to ten to manage the costs and the team have told you that they are often under considerable pressure to perform their operational and financial audit work and feel short staffed. The team therefore relies on the support of key members of the finance department and IT department, who are experts in their areas

You were appointed to the role by the audit committee and have been given authority to investigate all aspects of the business.

From your initial understanding of the internal audit function which TWO statements describe the strengths of the department?

Which of the following is correct in relation to the equitable remedy of rescission?

(i) Rescission is available in the event of any breach of contract

(ii) The victim of misrepresentation may automatically claim rescission

(iiI) The purpose of rescission is to return the parties to their pre-contract position.

Exe Ltd contracted to manufacture and deliver machinery to Wye plc for a price of £100,000. As required by the contract, Wye plc paid a deposit to Exe Ltd of £20,000. In order to fulfil its contract it has been necessary for Exe Ltd to purchase specialist tools and equipment. Before the contract was completed, Exe Ltd's factory was destroyed by fire. Neither Exe Ltd nor Wye plc was in any way responsible for the fire.

Which of the following is INCORRECT? 

(i) The contract between Exe Ltd and Wye plc has become frustrated.

(ii) The contract may remain enforceable if the parties have agreed a force majeure clause which specifies the repercussions of a factory fire.

(iii) As the deposit was payable before the contract became unenforceable, Wye plc will lose its deposit of £20,000. 

Immediately before being placed in creditors voluntary liquidation, Tom, the sole director of Bee Ltd, arranged for the company to make an early repayment of an unsecured loan made to Bee Ltd by his wife Anne. Which of the following is correct?

Which THREE of the following are examples of a fraudulent action against a company?

Which of the following is CORRECT?

(i) A company limited by shares is a legal person separate and distinct from those who own and manage the company

(ii) If the company structure is used as a mere façade for fraudulent purposes the company but not the directors or shareholders can be held liable

(iii) If the company has carried on business despite the fact that insolvency appeared inevitable the directors may be personally liable for the debts contracted.

You have been asked to be involved in negotiations for the potential acquisition of another company. It so happens that your spouse is on the board of directors of that company. This affects the CIMA Code of Ethics fundamental principle of:

Which THREE of the following may be external stakeholders in the activities of a nuclear power station?