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.
Which of the following statements is incorrect?
(i) A term may be implied into a contract on the basis of previous dealings between the parties.
(ii) A term may be implied into a contract by statute.
(iii) A term may be implied into a contract by a court where it would be reasonable to imply it.
ABC Ltd has entered into a contract with DEF Ltd. The contract provides that breach a particular term entitles the innocent party to terminate the contract. What is the legal status of that term?
Which of the following cases of dismissal are likely to be deemed automatically fair by an employment tribunal?
Which of the following is an advantage of carrying on a business through the medium of a private company limited by shares?
Which of the following is NOT a personal quality expected of professional accountants by CIMA?
SuperSole eventually decides to outsource its internal audit.
Which of the following are benefits it might experience from doing so?
Select ALL that apply.
Which of the following is not financial assistance for the purchase of a public company's own shares?
If a claim for unfair dismissal is successful, which of the following orders can be made by an employment tribunal?
i. re-instatement
ii. re-engagement
iii. compensation
Why should accountants be up-to-date with developments in the profession?Choose TWO options.
A professional accountant is NOT accountable to:
Which of the following is correct?
i. A company intending to issue new shares for cash must first offer them to the existing shareholders.
ii. A company may dispense with the requirement to offer new shares to existing shareholders by passing a special resolution.
iii. A company issuing shares for a non-cash consideration is not required to offer the shares to the existing members first.
A company is considering having an external audit. It knows the benefits of doing so, though is unsure of the disadvantages.
Which of the following are reasons why the company might not want to have an external audit?
Select ALL that apply.
Which of the following statements is correct regarding dismissal?
Internal audit is considered best practice but is not required by law Which of the following does NOT describe a benefit of internal audit to the board of directors?
Which TWO of the following are features of a compliance-driven framework?
Which of the following groups is a non-financial as opposed to a financial stakeholder of a company?
Which of the following countries does not have a written constitution?
Which of the following statements suggests that A is an employee in relation to the work he carries out for BCD Ltd?
i. He is required to provide his own tools.
ii. He is required to carry out his work personally and is not free to send a substitute.
iii. He is in receipt of pay after income tax has been deducted under PAYE.
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.
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.
Which of the following must an internal audit satisfy in order to be deemed independent? Select ALL that apply.
High profile corporate scandals in the past decade have had an effect on which of the following?
The board of Wye Ltd has resolved to issue £100,000 of redeemable preference shares. Which of the following is correct?
(i) The company must have issued at least one non-redeemable share.
(ii) The company must redeem them at not less than their nominal value.
(iii) A holder of a redeemable share must also hold at least one ordinary share in the company.
Which of the following are correct in relation to supervisory and management boards of directors?
1 A supervisory board reports to the mangament board in respect of business policy and future strategy
2 A management board is usually made up entirely of executive directors
3 A supervisory board includes employee representatives.
Which of the following is correct in relation to the memorandum of association when registering a company limited by shares?
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?
R and P are the only shareholders in RP Ltd, each holding 100 ordinary £1 shares. They have both paid half the nominal value of the shares. The company has been placed in creditors' voluntary liquidation on the ground that it is unable to pay its debts.
Which of the following is correct?
Agency theory is often cited as an explanation for the development of corporate governance Which TWO of the following statements are correct?
In relation to corporate governance, which of the following statements best describes the situation in the UK?
In which THREE of the following situations might professional accountants be required or permitted to disclose confidential information relating to their employer?
