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CIMA BA4 Exam
BA4 - Fundamentals of Ethics, Corporate Governance and Business Law (Page 17 )

Updated On: 9-Feb-2026
Page 17 of 102
PDF with 661 Questions

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?

  1. Yes - but only if the waste causes damage to the local environment
  2. Yes - the manager who created the spill has behaved unethically and should be disciplined
  3. Yes - the company has a duty to report something that might breach environmental legislation and could cause environmental damage
  4. No - the leak was a mistake, so this is not an ethical issue

Answer(s): C



The Articles of Association of Dee Ltd state that the company has power to borrow money and that the directors have authority to borrow up to £200,000 on behalf of the company. The board has resolved to purchase a piece of land for £300,000. The Midwest Bank plc has agreed to make a loan of £250,000 to Dee Ltd to acquire the land. Which of the following statements is correct?

  1. The loan is void as Dee Ltd has acted ultra virus.
  2. As the directors have exceeded their authority, the bank cannot enforce the loan against Dee Ltd.
  3. As the directors have resolved to obtain the loan they have acted in accordance with the company's constitution.
  4. The loan is ultra virus the directors who will be personally liable for any loss caused to the company, unless their actions are ratified by the shareholders.

Answer(s): D



One of your colleagues has just been poached by a competitor. You have reason to suspect that he has provided his new employer with sensitive information about your company that could disadvantage your employer. This affects the CIMA Code of Ethics fundamental principle of:

  1. Responsibility
  2. Respect
  3. Confidentiality
  4. Cooperation

Answer(s): C



Completing work within established deadlines reflects the personal quality identified by the CIMA Code of Ethics as:

  1. Responsibility
  2. Accuracy
  3. Timeliness
  4. Tardiness

Answer(s): C



In a situation where a professional accountant needs to choose in whose interest he or she is to behave and act, which of the following interests should he or she put first?

  1. Employer's interest
  2. Client's interest
  3. CIMA's interest
  4. Public interest

Answer(s): D






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