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CIMA BA4 exam : Fundamentals of Ethics - Corporate Governance and Business Law
- Exam Code: BA4
- Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
- Updated: Sep 05, 2026
- Q & A: 660 Questions and Answers
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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Company Administration | 10% | - Corporate insolvency and administration - Types of business organizations - Formation and constitution of companies - Company financing and capital |
| Business Ethics and Ethical Conflict | 30% | - Concepts of ethics and business ethics - Identification and resolution of ethical dilemmas - CIMA Code of Ethics and professional values - Ethics vs law and regulation |
| General Principles of the Legal System, Contract and Employment Law | 15% | - Structure and sources of law - Terms, breach and remedies of contract - Essential elements of a valid contract - Employment law, rights and obligations |
| Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Internal control and risk management - Roles and responsibilities of directors and officers - External audit and assurance - Principles and frameworks of corporate governance - Corporate social responsibility and sustainability |
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
Question #1
Which of the following statements is correct?
(i) An employer may rely on information discovered after an employee's dismissal to justify a wrongful dismissal.
(ii) An employer may rely on information discovered after an employee's dismissal to justify an unfair dismissal.
(iii) An employment tribunal will take into account the employee's conduct when determining how much compensation for unfair dismissal to award.
- A. (iii) only
- B. (i) and (iii)
- C. (i) only
- D. (i) and (ii)
Answer: B
Question #2
Section 13 of the Sale of Goods Act 1979 implies a condition into contracts for the sale of goods that the goods supplied will correspond to the description. What remedies are available to the innocent buyer in the event of a breach of Section 13?
- A. The contract between the buyer and the seller is automatically cancelled
- B. The buyer has the option of retaining the goods and claiming damages or repudiating the contract and claiming damages
- C. The buyer is entitled to specific performance of the contract
- D. The buyer is entitled to damages only
Answer: B
Question #3
The distinction between an employee and an independent contractor is important because only an employee:
i. is given statutory protection in relation to employment rights.
ii. is subject to the deduction of income tax and national insurance under the PAYE system.
iii. can make the employer vicariously liable for his/her torts.
- A. (i), (ii) and (iii)
- B. (ii) and (iii) only
- C. (i) and (iii) only
- D. (i) and (ii) only
Answer: A
Question #4
All policies for governance and social responsibility are ultimately rooted in an organization's:
- A. Values and code of ethics
- B. The Board
- C. Stakeholder relationships
- D. The Government
Answer: A
Question #5
Wye Ltd is considering appointing Anne as a director of the company. Which of the following is incorrect?
(i) If Anne is an un-discharged bankrupt, she cannot act as a company director.
(ii) If Anne is the subject of a disqualification order, she cannot act as a company director.
(iii) If Anne has already been appointed a director of another company, she cannot also act as a director of Wye Ltd.
- A. (iii) only
- B. (i) only
- C. (ii) only
- D. (ii) and (iii) only
Answer: A
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