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.
If financial statements give a true and fair view, then they:
As stated in the CIMA Code of Ethics, the two key attributes of independence used in connection with the assurance engagement are:
Which ONE of the following statements is correct in relation to the UK Corporate Governance Code?
Which of the following would NOT violate the CIMA Code of Ethics fundamental principle of confidentiality?
In the UK, the body responsible for taking an appropriate role in the development of statutes, regulations and accounting standards which affect the conduct of auditing and assurance services, both domestically and internationally is:
P contracted to buy a computer from CD (Retailers) Ltd. The contract contained a term excluding liability for any breach of the condition implied by the Sale of Goods Act 1979 that the goods should be of "satisfactory quality".
Which of the following is correct?
Members of the accountancy profession are expected to demonstrate certain personal qualities and virtues such as 'respect'
Which of the following is an example of the demonstration of the virtue of respect?
Which of the following is incorrect in relation to the remedy of damages?
Which of the following is not a legal person?
In the UK the body responsible for establishing ethical standards relating to the independence, objectivity and integrity of those providing assurance services is:
L is a senior management accountant in a large and respected firm. He has found out that two of the partners of the firm are working unethically for clients who operate on 'the wrong side of the law'. L would like to draw this matter to the attention of the third partner, but he is concerned that he will either lose his job, or, if the scandal gets out, the firm will lose its reputation and clients as a result. He decides to do nothing. Is this an unethical thing to do?
Which of the following requires the approval of a simple majority of all the company's shareholders who are entitled to vote?
Which ONE of the following is NOT a personal consequence of unethical behavior?
Which of the following is NOT a 'financial stakeholder' of an organization?
Wye has borrowed £10,000 from Exe and the loan has now become repayable in full. Exe has received a cheque from Wye for £9,000 stated to be “in full and final settlement of the loan.” What is the position if Exe cashes the cheque?
(i) Exe will have accepted £9,000 in full and final settlement and will not be able to claim the other £1,000 from Wye.
(ii) Exe is legally entitled to cash the cheque and pursue Wye for the balance of £1,000.
(iii) Exe will have accepted £9,000, but at law payment of less than the amount due cannot satisfy the full debt.
In relation to the Unfair Contract Terms Act 1977, which of the following is correct?
(i) A clause which attempts to exclude liability for death or personal injury caused by negligence is only valid if it is reasonable.
(ii) A clause which attempts to exclude liability for damage to property is void unless it is reasonable.
(iii) The Unfair Contract Terms Act applies to contractual terms and to occupiers' liability.
W, a junior accountant, passed all his qualifications with distinction, and has received high praise for the quality of the work he has done. However, he always delivers his work late, believing it is more important to be thorough than to be on time. Which personal quality is W lacking?
Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
Shiny Steel is a steel manufacturer keen on increasing short-term shareholder interest. It has a number of factories in the country, which all have to abide by the new legislation that states carbon emissions shouldn't
exceed a particular limit.
Baring this in mind, which of the following might give Shiny Steel the best chance of increasing short-term shareholder interest?
Brian is the registered owner of 500 shares in Exe Ltd. Which of the following statements is correct?
You work for a chain of restaurants. The head chef of your flagship restaurant raises questions about the inclusion of highly endangered species of fish on the restaurant's menu. Is it an ethical issue and why?
Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?
Zed Ltd was incorporated in 2010 and has chosen to use the standard Model Articles of Association. The company is considering appointing Max as a director of the company.
Which of the following is incorrect?
(i) Max cannot be a director of the company unless he holds shares in the company.
(ii) Max cannot be a director of the company if he is an undischarged bankrupt.
(iii) Max cannot be a director of the company if he is subject to a disqualification order.
Which of the following is incorrect?
J and K are the only shareholders in JK Ltd, each holding 500 fully paid ordinary £1 shares. J is the company's only director and K the company secretary. The company has been placed in creditors’ voluntary liquidation on the grounds that it is unable to pay its debts.
Which of the following is correct?
In Germany the two-tier board structure is used by many limited liability companies. A two-tier board structure is made up of a Management Board and which other organ?
Which of the following statements is correct?
(i) As a general rule the acceptance of an offer is only effective when it has been communicated to the offeror.
(ii) A person must know of an offer before he or she can accept it.
(iii) A request for further information has the effect of destroying the original offer.
In relation to the company secretary which of the following is correct?
(i) A public company must have a company secretary who is appropriately qualified
(ii) A member of CIMA is qualified to act as a company secretary
(iii) A private company may choose to have a company secretary and if so he/she must be appropriately qualified
The board of Zed Ltd wishes to borrow money from Exe Bank plc. What authority will the board require to enable it to proceed?
Which of the following is incorrect in relation to the criminal law?
