BA4 by CIMA Valid Free Exam Practice Test

Question 1

Compliance is

A. Doing the right thing because it is the right thing to do B. Doing the right thing because you have to C. A matter of judgment D. A way of building trust

Correct Answer: B

Question 2

Which TWO of the following are the characteristics of a framework driven by values, principles and ethics?

A. Mandatory B. Detection C. Implicit D. Discretionary

Correct Answer: C,D

Question 3

When might an ethical dilemma occur?

A. All of the above B. When there is a conflict of interest C. When legislation dictates the appropriate course of action D. When a code of ethics provides clear guidance on next steps

Correct Answer: B

Question 4

What is the purpose of the equitable remedy of rescission?

A. To prevent a party from acting in breach of contract. B. To ensure that the innocent party is adequately compensated. C. To place the parties in their pre-contract position. D. To force the party in breach to carry out the contract.

Correct Answer: C

Question 5

F knows from preparing the accounts that the company she works for is going to have to make redundancies due to the recession. She also knows that, despite the recession, the Managing Director continues to enjoy lavish perks and even uses a private jet. What should she do?

A. Leak the information: that way F's conscience will be clear but the information won't be traced back to her B. Go to the press: Mrs F has a duty to report this in the public interest and the interest of the staff who will be made redundant C. Resign: F cannot carry on working at a company which is so unethical D. Do nothing: Professionally, Mrs F is bound to respect the confidentiality of the information she has received

Correct Answer: D

Question 6

Which of the following are reasons why regulatory frameworks may differ between countries: Select ALL that apply.

A. Differences in history and culture B. Difference in GDP C. Differences in types of shareholder D. Differences in law and tax E. Difference in language

Correct Answer: A,C,D

Question 7

Which of the following is INCORRECT in relation to the United States of America (USA)?
(i) In the event of a conflict between state and federal legislation, state legislation is superior.
(ii) The USA has a federal system of government.
(iii) Legislation is enacted by Congress.

A. (i) and (ii) only B. (i) only C. (i) and (iii) only D. (iii) only

Correct Answer: B

Question 8

Which of the following is incorrect in relation to equitable remedies?

A. A person seeking an equitable remedy must act within a reasonable time. B. A person who requests an equitable remedy must have acted equitably himself. C. Equitable remedies are available as of right. D. A person cannot obtain an equitable remedy if the common law remedy of damages is adequate.

Correct Answer: C

Question 9

Which of the following is correct in relation to the UK Corporate Governance Code?
(i) The Code gives rise to a disclosure requirement
(ii) Breach of the Code gives rise to criminal penalties
(iii) Breach of the Code gives rise to civil liability

A. (ii) and (iii) only B. (i) and (ii) only C. (i) only D. (iii) only

Correct Answer: C

CIMA Fundamentals of Ethics - Corporate Governance and Business Law - BA4 Exam Practice Test