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 is presumed not to be intended to create legal relations?
You work for a company based in a capital city that leases office space to other organizations. Which of the following corporate issues is not related to ethics or social responsibility?
Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?
Which of the following is an 'interest stakeholder' in an organization?
Which of the following is incorrect?
M's client has asked her to 'leave out' a few figures as he is applying for a bank loan and he wants his management accounts to, in his words, 'look better'. If M does as he asks, he promises to pay her double her fee when the loan money comes through. M is tempted by his offer, her mother has been ill and she would love to take her away on holiday. What should she do?
Why does life-long learning require commitment? Choose TWO options.
In assessing a compensation award for unfair dismissal, which of the following is incorrect?
The body responsible for reviewing the operations of the accounting profession worldwide is:
Which of the following are examples of an invitation to treat? Select ALL that apply.
Which of the following does NOT describe the responsibilities of the audit committee?
In the UK, which organization that governs the accounting profession has taken the lead with respect to ethical considerations?
A, B and C carry on business in a general partnership. A has proved an unsatisfactory partner in that he is continually absent from work for no justifiable reason. B and C wish to expel A from the partnership. Which of the following is CORRECT?
Which parties of a company form the agent/principal relationship?
Company C got rid of a director because his interests failed to align with the shareholders'.
They've recently hired a new director, and they are keen to avoid a repeat scenario.
Which of the following could the company do to ensure the new director works with the best interests of shareholders in mind?
Select ALL that apply.
If a business trades as “Exe and Co (Office Furniture)” which of the following is CORRECT?
(i) The business could be owned by a partnership
(ii) The business could be owned by a sole trader
(iii) The business could be owned by a private company limited by shares
Which ONE of the following provides an example of circumstances that may create self-review threats for a professional accountant in public practice?
In the UK, the body responsible for promoting confidence in corporate reporting and governance is:
Which of the following reasons for dismissal are NOT deemed to be automatically unfair?
Which of the following statements are correct regarding companies'?
1. Both public and private companies must have a minimum amount of share capital before they can commence trading.
2. The shareholders of both public and private companies cannot interfere in the management of the company.
3. The minimum number of directors for both public and private companies is two
You are concerned that your boss may have been putting together misleading financial statements for some time. As a well known and well respected accountant, you are concerned that your boss might bring the profession into disrepute. Which TWO of the CIMA Code of Ethics fundamental principles does this affect?
Which of the following is a common law remedy?
Which of the following options are correct in relation to a contract of employment?
1. The contract must be in writing
2. An employee's duty to act with reasonable care and skill is implied into the contract
3. An employer's duty to provide a inference is implied into the contract
According to CIMA, which TWO of the following are responsibilities of a professional accountant?
Which of the following are fundamental characteristics of useful information? Select ALL that apply.
Which of the following terms can be defined as follows?
"...the system by which companies are directed and controlled"
A group of business associates are about to register X Ltd as a company limited by shares. The associates wish to restrict the company's objects so that the company is only authorized to carry on the business of retailing computer hardware and software. Which of the following is correct?
J is at his company's reception desk when the promotions manager of a new restaurant and bar nearby hands him a number of vouchers for cheap meals and drinks. At the promotion manager's request, J agrees to share out the vouchers among his company's employees. J does not earn much and is tempted to keep the vouchers for himself and his friends. Is this an ethical issue and why?
Independence of mind allows a professional accountant to:
Which of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?
