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Free CIMA BA4 Practice Exam with Questions & Answers | Set: 9

Questions 121

According to the CIMA code of ethics, if appropriate safeguards cannot be identified to address threats to compliance with fundamental principles, a professional accountant should:

Options:
A.

Proceed unless the situation will involve breaking the law

B.

Proceed with necessary caution

C.

Identify the situation to superiors before continuing with the professional service involved

D.

Refuse to remain associated with the matter creating the conflict, where possible

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Questions 122

The IFAC Code of Ethics applies:

Options:
A.

To accountants by law

B.

To accountants around the world

C.

To those accountants whose employers sign up to the principles of acting ethically

D.

To all professionals, including accountants

Questions 123

S Ltd has an issued share capital of 1000 ordinary shares of £1 each.  Some of the shareholders would like to change the name of the company.  What is the minimum number of votes which must be cast in favor of the resolution to make it effective?

Options:
A.

501

B.

500

C.

750

D.

1,000

Questions 124

Which of the following statements is correct?

(i) A term may be implied into a contract by statute.

(ii) A term may be implied into a contract on the ground that it is a trade custom.

(iii) A term may be implied into a contract by a court in order to give the agreement "business efficacy".

Options:
A.

(i) only

B.

(i) and (ii) only

C.

(iii) only

D.

(i), (ii) and (iii)

Questions 125

Which of the following is incorrect?

Options:
A.

The first directors are appointed upon the incorporation of the company.

B.

Subsequent directors are appointed according to the rules set down in the company's Memorandum of Association.

C.

A director is a person who occupies the position of director by whatever name called.

D.

A shadow director is a person in accordance with whose directions or instructions the directors of the company are accustomed to act.

Questions 126

X is in the process of setting up a private company limited by shares X is considering including certain provisions in the articles of association. Which of the following provisions would be enforceable by and against the company?

1 Dividend rights of the members

2. Terms relating to bonuses of directors

3. Payment terms of suppliers.

Options:
A.

1 only

B.

1 and 2 only

C.

2 and 3 only

D.

1,2 and 3

Questions 127

Which of the following is NOT one of the 'seven principles of public life', as defined by the Committee of Standards in Public Life?

Options:
A.

Leadership

B.

Professionalism

C.

Honesty

D.

Integrity

Questions 128

In relation to contractual performance, which of the following is incorrect?

Options:
A.

A person who has substantially performed the contract is entitled to the contract price less so much as is necessary to repair the defects.

B.

If one party is prevented from performing the contract by the other party, he or she may claim compensation on a "quantum meruit" basis.

C.

A person who has carried out part of the contract is always entitled to a part of the contract price.

D.

A person who has carried out all of his contractual obligations is entitled to all of the contract price.

Questions 129

Which of the following groups is a non-financial as opposed to a financial stakeholder of a company?

Options:
A.

Competitors

B.

Shareholders

C.

Customers

D.

Suppliers

Questions 130

Which of the following CANNOT be appointed as the sole director of a private company limited by shares?

(i) A person over the age of 70 years

(ii) A person under the age of 16 years

(iii) A private company limited by shares

Options:
A.

(i) only

B.

(i) and (iii) only

C.

(iii) only

D.

(ii) and (iii) only

Questions 131

Which of the following reasons for dismissal are NOT deemed to be automatically unfair?

Options:
A.

Serious misconduct

B.

Refusing to join an independent trade union.

C.

Pregnancy

D.

Selection for redundancy because of membership of a trade union.  

Questions 132

Brian is the registered owner of 500 shares in Exe Ltd.  Which of the following statements is correct?

Options:
A.

Brian is only contractually bound to Exe Ltd in respect of the provisions contained in the company's Articles of Association.

B.

Brian is only contractually bound to Exe Ltd and the other present shareholders of the company in respect of the provisions contained in the company's Articles of Association.

C.

Brian is only contractually bound to Exe Ltd and the present directors in respect of the provisions contained within the company's Articles of Association.

D.

Brian is contractually bound to Exe Ltd and the present and future shareholders in respect of the provisions contained within the company's Articles of Association.  

Questions 133

The code of ethics of the professional body to which M belongs is very clear about the importance of non-discrimination on the grounds of race, gender, sexual orientation and religion. But, because of her particular religious convictions, M believes that homosexuality is wrong. This is an example of a tension between:

Options:
A.

Corporate and professional values

B.

Personal and professional values

C.

Societal and professional values

D.

Personal and corporate values

Questions 134

Which of the following is correct?

(i) A liquidated damages clause will be void if it amounts to a penalty clause.

(ii) A liquidated damages clause will apply where it is a genuine attempt to pre-estimate the loss caused by a breach of contract.

(iii) A liquidated damages clause is void if it is for an amount in excess of the actual loss caused by the breach of contract. 

Options:
A.

(i) and (ii) only

B.

(ii) only

C.

(i), (ii) and (iii)

D.

(iii) only

Questions 135

In relation to registering a company limited by shares, which of the following is correct?

Options:
A.

If the promoters fail to submit Articles of Association to the Registrar of Companies, the company cannot be registered.

B.

If the promoters fail to submit Articles of Association to the Registrar of Companies, the provisions of Table A automatically apply.

C.

If the promoters fail to submit Articles of Association to the Registrar of Companies, the documents will be returned to the promoters with a request for Articles to be submitted.

D.

If the promoters fail to submit Articles of Association to the Registrar of Companies, the company will be registered but will have no Articles of Association applicable to it.

Exam Code: BA4
Certification Provider: CIMA
Exam Name: Fundamentals of Ethics, Corporate Governance and Business Law
Last Update: Jul 15, 2025
Questions: 661

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