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CIMA BA4 Exam Syllabus Topics:

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

1. In relation to the law of misrepresentation, which of the following statements is incorrect?

A) In general, silence cannot amount to a misrepresentation.
B) A misrepresentation is not actionable unless it induced the claimant to contract.
C) An honest statement of opinion by a layman cannot amount to a misrepresentation.
D) A person cannot be liable for misrepresentation, if the truth of the statement could be determined by the misrepresentee making reasonable enquiries.

2. Which of the following need NOT be submitted in order to register a private company limited by shares?
(i) Articles of association
(ii) The name of the company secretary
(iii) A statement of share capital

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

3. 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 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
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 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.

4. Sam is the director of a large company.
He has recently come under pressure from shareholders who are keen to seen an increase in the company's share price.
If he is able to do this, what will the most likely benefit be?

A) His contract at the company will be extended indefinitely.
B) His position in the company will be strengthened.
C) He will receive a large bonus.
D) His working hours will be reduced.

5. Which of the following is correct in relation to the purchase by a company of its own shares?
(i) If a company wishes to purchase its own shares it must have authority in its Articles of Association.
(ii) A private company may purchase its own shares out of capital.
(iii) It is not possible for a company to purchase all its own shares.

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

Solutions: