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Free BA4 Exam Braindumps
BA4 - Fundamentals of Ethics, Corporate Governance and Business Law Questions 241–245 (page: 50)

Updated On: 9-Feb-2026
Page 50 of 102
PDF with 661 Questions

According to the CIMA Code of Ethics, which of the following categories describe common threats to compliance with the fundamental principles? Please select all that apply.

  1. Self-interest threats
  2. Self-review threats
  3. Familiarity threats
  4. Intimidation threats

Answer(s): A,B,C,D



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

  1. Brian is only contractually bound to Exe Ltd in respect of the provisions contained in the company's Articles of Association.
  2. 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.
  3. 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.
  4. 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.

Answer(s): D



B has been employed by Wye Ltd for 10 years. His contract of employment states that, if either Wye Ltd or B wishes to terminate the contract, each party must give the statutory minimum period of notice.

Which of the following statements is correct?

  1. Both B and Wye Ltd are entitled to 10 weeks' notice.
  2. B is entitled to 10 weeks' notice but Wye Ltd is entitled to only 1 week's notice.
  3. B is entitled to 1 month's notice and Wye Ltd is entitled to 10 weeks' notice.
  4. Both B and Wye Ltd are entitled to 1 week's notice.

Answer(s): B



Which of the following type of committee is NOT required by the UK Combined Code?

  1. Investment committee
  2. Audit committee
  3. Remuneration committee
  4. Nominations committee

Answer(s): A



X was employed by Bee Ltd as its senior design consultant. X contracted with Bee Ltd that, when his employment with the company ceased, he would not act in competition with it or solicit its customers. After X left Bee Ltd, he registered a company called Cee Ltd which immediately began working in competition with Bee Ltd and soliciting its customers. Bee Ltd complained to X about this conduct, but X stated that, as the work was being undertaken by Cee Ltd, a separate legal entity, X had not acted in breach of the agreement with Bee Ltd.

Which of the following statements is correct?

  1. X is correct and cannot be said to be in breach of the agreement with Bee Ltd.
  2. If the court finds that Cee Ltd was set up by X to avoid the agreement with Bee Ltd, it will "lift the corporate veil" and enforce X's contract with Bee Ltd against X and Cee Ltd.
  3. Cee Ltd will be bound by the agreement because a company is always liable for the actions of its shareholders.
  4. The agreement between Bee Ltd and X is of no legal effect, as it attempts to regulate X's activities after he has left Bee Ltd's employment.

Answer(s): B



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