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CIMA BA4 real answers - Fundamentals of Ethics - Corporate Governance and Business Law

BA4
  • Exam Code: BA4
  • Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
  • Updated: Oct 10, 2025
  • Q & A: 660 Questions and Answers
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CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

1. Natthapong's toilet won't flush, so he hires a plumber to come over and fix it.
He tells the plumber what the problem is, and the plumber agrees to fix it.
However, once the builder supposedly finishes the job, Natthapong finds that it still won't flush.
Is he able to terminate the contract?

A) No - Once he's offered the plumber the job he is unable to terminate the contract.
B) Yes - He is able to terminate the contract at any time, even if the plumber did fix the toilet.
C) Yes - The plumber did not fix the toilet and so the offer cannot be accepted.
D) No - Even if the plumber hasn't fixed the toilet he has still given up his time and effort and should therefore be paid.


2. In which of the following situations has a contract of employment arisen?

A) A verbal offer of work is made to Q at a given pay rate for specified services. The offer is not accepted by Q either verbally or in writing and Q does not turn up for work
B) A verbal offer of work is made to P at a given pay rate per hour for specified services The offer is not accepted by P either verbally or in writing but P turns up for work and performs the duties identified in the offer.
C) A verbal offer of work is made to S for the possibility of duties at a specified pay rate but the employer makes it explicit that, as the need for the services is not yet certain S is free to work elsewhere
D) A written offer of work is made to R which specifies the services required but omits the pay rate for the job. This is not accepted by R either in writing or verbally and R does not turn up for work


3. Which of the following statements describes an example of a value for money audit?

A) Appraising the efficiency of one of the organisation's manufacturing processes
B) Analysing the reported financial performance of one of the organisation's branches
C) Identifying and appraising weaknesses in the organisation's management team
D) Assessing the organisation's conformance with employment laws and regulations


4. Which ONE of the following statements is correct?

A) Adherence to charitable donation policies is always mandatory
B) Adherence to codes of ethics is always mandatory
C) Adherence to social responsibility policies is always mandatory
D) Adherence to legislation is always mandatory


5. Which of the following statements refer to the remuneration committee? Select ALL that apply.

A) Has a responsibility to attract, retain and motivate directors.
B) Has a responsibility to monitor and review the effectiveness of the internal audit function.
C) Makes decisions regarding the payment of directors.
D) Makes decisions regarding the appointment of new directors.
E) Makes decisions regarding the appointment, re-appointment and removal of the external auditor.
F) Staffed exclusively by NEDs.


Solutions:

Question # 1
Answer: C
Question # 2
Answer: B
Question # 3
Answer: A
Question # 4
Answer: D
Question # 5
Answer: A,C,F

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