BA4 CIMA Fundamentals of Ethics, Corporate Governance and Business Law Free Practice Exam Questions (2025 Updated)
Prepare effectively for your CIMA BA4 Fundamentals of Ethics, Corporate Governance and Business Law certification with our extensive collection of free, high-quality practice questions. Each question is designed to mirror the actual exam format and objectives, complete with comprehensive answers and detailed explanations. Our materials are regularly updated for 2025, ensuring you have the most current resources to build confidence and succeed on your first attempt.
Intimidation threats to compliance with fundamental principles are described as threats that may occur
Which of the following deal with most criminal matters in China?
Which of the following may cause a director to be disqualified from acting as a director under the Company Directors Disqualification Act 1986?
(i) Persistent default by the director in complying with the filing requirements under the Companies Acts.
(ii) Causing a company to continue to trade at a time when the director ought to know that insolvency is inevitable.
(iii) Carrying on business with intent to defraud creditors.
Miss B is working closely with Mr L to deliver an important report on the efficiency of Mr L's department. They have had to work late together several times, and last night they went out to dinner afterwards. Miss B is starting to think she may have feelings for Mr L. Could her independence be called into question?
How can values become part of a company's DNA? Choose TWO of the following options.
Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?
Anne, Bill, Chris and Diane are the only directors of ABCD Ltd. Bill is the Chairman of the board and has a casting vote. A board meeting was called to consider a proposal to enter into a contract with EFG Ltd. Which of the following is INCORRECT?
How might an organization exercise ethical control over its staff? Select ALL that apply.
You work for an airline company and discover a series of regular payments made to a lobbying group that campaigns to allow people freedom to fly as and when they choose without being taxed for contributing to global warming. The group's website includes specific commentary that claims to 'expose the myth of global warming'. Neither your company nor the lobbying group (which describes itself as 'independent') mention the financial link between your organizations. Is this an ethical issue and why?
Alan, Ben, Chris and Debbie are the only shareholders in ABCD Ltd, each holding 100 ordinary £1 shares. Alan, who is the company's sole director, has recently learned that Ben, Chris and Debbie are intending to remove him as a director by passing an ordinary resolution. In consequence Alan sold his computer to the company in return for 1,000 ordinary £1 shares. The company was in need of a computer, which was of equal value to the 1,000 ordinary £1 shares.
Which of the following is correct?
In regards to a claim of misrepresentation, which of the following must be proved to show that the defending party induced the other party into entering the contract?
Select ALL that apply.
C recently purchased some goods at an auction sale. Which of the following is correct?
(i) The contract was concluded by the fall of the Auctioneer's hammer.
(ii) The Auctioneer's call for bids was an invitation to treat.
(iii) Once the bidding had started, the Auctioneer was unable to withdraw the goods from the sale.
Which of the following are cases where the veil should be lifted? Select ALL that apply.
Your company's marketing department produces a corporate brochure where, although it uses data that is accurate, the conclusions that it draws are somewhat misleading. Is this an ethical issue and why?
Which of the following most accurately describes obiter dicta?
Which of the following is CORRECT in relation to a Limited Liability Partnership (“LLP”)?
(i) An LLP is formed by registration with the Registrar of Companies
(ii) Unlike the articles of a company the internal rules of an LLP are not available for public inspection
(iii) An LLP is liable to pay corporation tax on its profits
In relation to contractual performance, which of the following is incorrect?
A Ltd contracted to deliver a quantity of goods to B Ltd for £5,000. The goods were delivered and A Ltd submitted an invoice to B Ltd for the amount due which contained a number of new terms. Which of the following is incorrect?
Which of the following are guilty of skimming? Select ALL that apply.
Which of the following is correct?
Who is bound by the articles of association?
Which of the following types of board committee are recommended by the UK Corporate Governance Code?
(i) Nomination Committee
(ii) Audit Committee
(iii) Quality Assurance Committee
Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?
Which of the following is incorrect in relation to remedies for breach of contract?
The Global Reporting Initiative (GRI) has produced Sustamability Reporting Guidelines, setting out categories and aspects which should be addressed through sustainable reporting.
Place the GRI categories next to the appropriate aspect of sustamability below.
Which of the following is correct in relation to damages?
(i) As a general rule damages for breach of contract are designed to place the innocent party in the position that he or she would have been in had the contract been carried out properly.
(ii) Damages are only available for breach of contract, if the breach caused the loss.
(iii) Damages are only available for losses arising naturally from the breach.
In relation to business names which of the following is CORRECT?
(i) Any business may trade under a business name.
(ii) If a business name is used the name of the owner of the business must be disclosed.
(iii) The business name of a private limited company must end with the word “Limited” or “Ltd”.
Which of the following are primary sources of Shari'ah law?
(i) The Sunnah
(ii) The Qur'an
(iii) Rules agreed unanimously by the disciples of Mohammad
Which of the following statements is correct?
(i) A wrongful dismissal cannot also be an unfair dismissal.
(ii) An unfair dismissal can also be a wrongful dismissal.
(iii) An unfair dismissal must also be a wrongful dismissal.
Who is involved in the third party relationship?
