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CIMA BA4 Exam Questions
BA4 - Fundamentals of Ethics, Corporate Governance and Business Law (Page 16 )

Updated On: 2-Mar-2026
Page 16 of 102
PDF with 661 Questions

B was employed by CDE Ltd and was dismissed. B claimed unfair dismissal and requested a written statement of reasons for his dismissal. Within what period must CDE Ltd comply with this request?

  1. 7 days
  2. 14 days
  3. 21 days
  4. 1 month

Answer(s): B



B Ltd has an issued share capital of 1,000 ordinary £1 shares. The board of B Ltd has resolved to alter the company's articles of association. Which of the following is correct?

(i) The articles may be altered by board resolution.

(ii) The articles may be altered by a written resolution of the shareholders.

(iii) The articles may be altered by a special resolution of the directors.

  1. (i) only
  2. (ii) only
  3. (iii) only
  4. (ii) and (iii) only

Answer(s): B



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.

  1. (i) only
  2. (i) and (iii) only
  3. (ii) only
  4. (iii) only

Answer(s): B



Tom is a director of XYZ Ltd. The company is considering purchasing Tom's business for £200,000. Which of the following is incorrect?

  1. Tom cannot contract with XYZ Ltd as he would be placing himself in a conflict of interest and duty situation.
  2. Tom must formally disclose his interest in the contract to the board.
  3. The shareholders may approve the arrangement by passing an ordinary resolution.
  4. The purchase consideration may be in the form of cash or shares.

Answer(s): A



Which of the following is incorrect?

  1. An Act of Parliament is a superior source of law to a decision of the Supreme Court.
  2. A decision of the Supreme Court is a superior source of law to a decision of the High Court.
  3. Where there is a conflict between equity and the common law, the common law prevails.
  4. Where there is a conflict between English Law and European Law, European Law prevails.

Answer(s): C



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