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CIMA BA4 Exam
BA4 - Fundamentals of Ethics, Corporate Governance and Business Law (Page 4 )

Updated On: 9-Feb-2026
Page 4 of 102
PDF with 661 Questions

Which ONE of the following statements is correct in relation to the UK Corporate Governance Code?

  1. If the Code is ignored by any company, no action may be taken as it has no legal status
  2. If any company fails to comply with the Code, the directors may be sued for breach of duty by the company on behalf of the shareholders
  3. If a public company fails to comply with the Code, it may be sued for breach of statutory duty by those who have suffered loss as a result
  4. If a listed public company fails to produce a report explaining why it has not implemented the Code's recommendations, it has acted in breach of the Code

Answer(s): D



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

  1. Serious misconduct
  2. Refusing to join an independent trade union.
  3. Pregnancy
  4. Selection for redundancy because of membership of a trade union.

Answer(s): A



Which of the following is not financial assistance for the purchase of a public company's own shares?

  1. A loan by a company outside the ordinary course of business
  2. Allowing the use of a company's assets as security for a loan
  3. The payment of a dividend which has the effect of putting a shareholder in funds and enabling him to purchase the company's shares
  4. Releasing a shareholder from a debt owed to the company

Answer(s): C



While working as an accountant, you are asked to overlook certain irregularities in your company's accounts. This is likely to result in tensions described by which TWO of the following four options:

  1. Personal and societal values
  2. Personal and corporate values
  3. Professional and corporate values
  4. Professional and societal values

Answer(s): B,C



Wye has borrowed £10,000 from Exe and the loan has now become repayable in full. Exe has received a cheque from Wye for £9,000 stated to be "in full and final settlement of the loan." What is the position if Exe cashes the cheque?

(i) Exe will have accepted £9,000 in full and final settlement and will not be able to claim the other £1,000 from Wye.

(ii) Exe is legally entitled to cash the cheque and pursue Wye for the balance of £1,000.

(iii) Exe will have accepted £9,000, but at law payment of less than the amount due cannot satisfy the full debt.

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

Answer(s): D






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