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BA4 - Fundamentals of Ethics, Corporate Governance and Business Law Questions 131–135 (page: 28)

Updated On: 9-Feb-2026

How many fundamental principles are identified by the CIMA Code of Ethics?

  1. Three
  2. Four
  3. Five
  4. Six

Answer(s): C



In furtherance of their duty to promote the success of the company under Section 172 of the Companies Act 2006, the directors are required to take account of amongst others, the company and its members, employees and suppliers.

Which of the following can enforce this duty against the directors?

  1. The company
  2. The members
  3. The employees
  4. The suppliers

Answer(s): A



Which of the following causes a charge to be void?

(i) A failure to register the charge at Companies House within 21 days of its creation.

(ii) A failure to register the charge at the company's registered office.

(iii) The issue of a charge to secure borrowing which is outside the directors' authority

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

Answer(s): A



Which TWO of the following are NOT directly relevant to a system of professional ethics?

  1. Religious morality
  2. Political morality
  3. Career development
  4. Personal friendships
  5. Family commitments

Answer(s): A,B



Which TWO of the following options describe safeguards that the CIMA Code of Ethics states may eliminate or reduce threats to compliance with fundamental principles to an acceptable level?

  1. Safeguards created by the Financial Reporting Council
  2. Safeguards created by the profession, legislation or regulation
  3. Safeguards in the governance environment
  4. Safeguards in the work environment

Answer(s): B,D



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