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CIMA BA4 Exam Syllabus Topics:

CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

1. Anne was induced to enter into a contract with Benny by his negligent misrepresentation. Which of the following is correct?
(i) Anne has a remedy against Benny in the tort of negligence.
(ii) Anne has a remedy against Benny under the Misrepresentation Act 1967.
(iii) Anne has a remedy in the tort of deceit.

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

2. Which of the following is the superior source of law?

A) A Statutory Instrument.
B) A decision by the Supreme Court.
C) A provision in an Act of Parliament
D) A Regulation issued by the European Council of Ministers.

3. Which THREE of the following statements are correct regarding the CIMA Code of Ethics for Professional Accountants?

A) The CIMA Code is mandatory for all CIMA members and students, and is applicable to all professional services.
B) Where a statutory requirement is in conflict with a provision of the CIMA Code, the CIMA Code requirement prevails
C) The CIMA Code imposes an obligation on CIMA members and students to comply with relevant laws and regulations
D) Professional accountants should consider the ethical requirements contained in the CIMA Code as the basic principles which they should follow in performing their work
E) The CIMA Code is an example of a compliance driven ethical framework

4. A company's sales team has been told that all planned salary increases and bonuses will be stopped if any member of the team fails to achieve his or her sales target. The team achieves targets but management is surprised by the number of customers who contact the company to complain about aggressive or misleading sales practices. Is this an ethical issue and why?

A) No - meeting sales targets is a business, not an ethical issue
B) Yes - management has put the sales team under a lot of pressure and members of the team appear to have engaged in unethical sales practices
C) Yes - the sales team are entirely at fault and should be dismissed
D) No - the management has behaved unfairly so the way that the sales team has responded is justified

5. Pascal later heads off to the party where he proceeds to tell everyone about his amazing first day at work and the huge profits his new company are making and how much he's already saved them. "My future is bright" he tells everyone!
Again, Pascal has breached CIMA's ethical principles.
Which of the following has he breached?
Select ALL that apply.

A) Confidentiality + Integrity
B) Integrity + Professional behaviour
C) Integrity
D) Objectivity + Professional competence and due care
E) Professional competence and due care
F) Confidentiality
G) Objectivity
H) Professional behaviour
I) Professional competence and due care + Objectivity
J) Professional behaviour + Confidentiality

Solutions: