CIMA BA4 Exam Questions Free Practice Test

Viewing page 10 out of 14 pages

Viewing questions 136-150 out of questions

Questions # 136:

X owns 51% of the shares in X Ltd. Y and Z are the only directors of X Ltd. Which ONE of the following is CORRECT?

Options:

X can give directions to Y and Z by passing ordinary resolutions ordering them to comply with his wishes

X can dismiss Y and Z for any reason by using his majority vote

X can use his votes to amend the articles and impose new obligations on Y and Z

X can force Y and Z to declare a dividend

Expert Solution

Questions # 137:

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?

Options:

The internal audit function can help the audit committee have confidence in the fraud prevention systems within the company

The internal audit function can provide independent assurance of the financial policies applied to the financial statements

The internal audit function can report back to the audit committee if controls are not as effective as they should be

The internal audit function can help the audit committee to discharge their responsibilities for the ongoing monitoring of the risk in the company

Expert Solution

Questions # 138:

Natthapong's toilet won't flush, so he hires a plumber to come over and fix it.

He tells the plumber what the problem is, and the plumber agrees to fix it.

However, once the builder supposedly finishes the job, Natthapong finds that it still won't flush.

Is he able to terminate the contract?

Options:

Yes - The plumber did not fix the toilet and so the offer cannot be accepted.

Yes - He is able to terminate the contract at any time, even if the plumber did fix the toilet.

No - Once he's offered the plumber the job he is unable to terminate the contract.

No - Even if the plumber hasn't fixed the toilet he has still given up his time and effort and should therefore be paid.

Expert Solution

Questions # 139:

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?

Options:

The energy efficiency of the buildings that you rent out

Honest and transparent contracts with your customers

Whether your buildings provide a safe and secure environment for workers and visitors

Having the prestige of renting out some of a capital city's most famous landmarks

Expert Solution

Questions # 140:

Which of the following statements is correct in relation to private and public companies limited by shares?

Options:

A private and public company are required to hold an AGM

A public company cannot commence trading until it has satisfied minimum share capital requirements

A public company is required to have at least one director

A private company must have a qualified company secretary

Expert Solution

Questions # 141:

Which of the following would be paid last by a company which had been placed in insolvent liquidation?

Options:

Outstanding loan capital and interest due to the holder of an unsecured debenture.

Share capital invested by the shareholders.

Fees owed to the directors

Unpaid employees' wages

Expert Solution

Questions # 142:

On the basis of the National Minimum Wages Act 1998, what is the age range for the lowest national minimum wage entitlement?

Options:

workers aged 16-18

workers aged 16-17

workers aged 15-17

workers aged 16-19

Expert Solution

Questions # 143:

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.

Options:

(i) and (ii) only

(ii) and (iii) only

(i) and (iii) only

(i), (ii) and (iii)

Expert Solution

Questions # 144:

C sued D in the tort of negligence in order to recover compensation for injuries suffered as a result of D breaking his duty of care to C. For what injuries can C claim compensation?

Options:

All reasonably foreseeable injuries caused by D.

All injuries caused by D.

All injuries which were a direct consequence of D's actions.

All physical but not psychiatric injuries caused by D.

Expert Solution

Questions # 145:

A business that behaves ethically may experience which of the following benefits; Select ALL that apply.

Options:

Little or no legal action

Improved reputation

Improved staff morale

Competitive advantage

Increased market penetration

Higher productivity levels

Increased profits

Expert Solution

Questions # 146:

Which of the following is not an equitable remedy?

Options:

Specific performance.

An injunction.

Damages.

Rescission.

Expert Solution

Questions # 147:

Acting diligently and in accordance with applicable technical and professional standards demonstrates the CIMA Code of Ethics fundamental principle of:

Options:

Responsibility

Professional competence and due care

Objectivity

Respect

Expert Solution

Questions # 148:

Which of the following is incorrect?

Options:

A ratio decidendi of the Supreme Court is binding on the Court of Appeal.

The Supreme Court is bound by a previous House of Lords ratio decidendi.

A ratio decidendi of the Court of Appeal is binding on the High Court.

A ratio decidendi of the Supreme Court is binding on the High Court.

Expert Solution

Questions # 149:

X Ltd has entered into a number of contracts with Y Ltd. In which of the following situations could the directors be held personally liable for the debts contracted with Y Ltd?

(i) X Ltd has continued to trade at a time when insolvency appeared inevitable

(ii) X Ltd has become insolvent and is unable to pay its debts to Y Ltd

(iii) X Ltd has contracted for a purpose not specified in its articles of association

Options:

(i) only

(i) and (ii) only

(ii) only

(iii) only

Expert Solution

Questions # 150:

Being able to be trusted by others to be dependable reflects the personal quality identified by the CIMA Code of Ethics as:

Options:

Traditionalism

Reliability

Respect

Transparency

Expert Solution

Viewing page 10 out of 14 pages

Viewing questions 136-150 out of questions

Pass the CIMA CIMA Certificate BA4 Questions and answers with CertsForce