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CIMA BA4 Exam
BA4 - Fundamentals of Ethics, Corporate Governance and Business Law (Page 8 )

Updated On: 9-Feb-2026
Page 8 of 102
PDF with 661 Questions

In relation to the Unfair Contract Terms Act 1977, which of the following is correct?

(i) A clause which attempts to exclude liability for death or personal injury caused by negligence is only valid if it is reasonable.

(ii) A clause which attempts to exclude liability for damage to property is void unless it is reasonable.

(iii) The Unfair Contract Terms Act applies to contractual terms and to occupiers' liability.

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

Answer(s): D



What can companies do in order to minimize the likelihood of future legislation?

  1. Maintain effective self regulation
  2. Insist on the highest standards of ethical behavior from their company and its employees
  3. Understand and address what the public expects of companies in terms of ethical behavior and social responsibilities
  4. All of the above

Answer(s): D



Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

  1. The separation of roles of Chairman and Chief Executive
  2. The appointment of a senior Government representative to the Board
  3. The appointment of independent non-executive directors to the Board
  4. The establishment of an audit committee

Answer(s): B



In relation to registering a company limited by shares, which of the following is correct?

  1. If the promoters fail to submit Articles of Association to the Registrar of Companies, the company cannot be registered.
  2. If the promoters fail to submit Articles of Association to the Registrar of Companies, the provisions of Table A automatically apply.
  3. If the promoters fail to submit Articles of Association to the Registrar of Companies, the documents will be returned to the promoters with a request for Articles to be submitted.
  4. If the promoters fail to submit Articles of Association to the Registrar of Companies, the company will be registered but will have no Articles of Association applicable to it.

Answer(s): B



Which of the following is correct?

  1. A fixed charge is a charge over a specific asset of the company which it is unable to deal with freely in the ordinary course of business.
  2. A fixed charge is a charge over a specific asset of the company which it is able to deal with freely in the ordinary course of business.
  3. A fixed charge is a charge over a class of company assets which the company can deal with freely in the ordinary course of business.
  4. A fixed charge is a charge over a class of company assets which the company is unable to deal with freely in the ordinary course of business.

Answer(s): A






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