CIMA BA4 Exam Questions Free Practice Test

Viewing page 2 out of 14 pages

Viewing questions 16-30 out of questions

Questions # 16:

Decklt is a skateboard manufacturer that is ethically run and has a good reputation.

However, it has just transpired that one of their suppliers - with whom they have a good relationship with due to their cheap prices - is involved in a serious fraud case.

What should Decklt do?

Options:

Immediately cut all ties with the company and look for a different supplier.

Stick with the supplier as they won't be able to find cheaper prices elsewhere.

Stick with the supplier but let the relevant regulatory bodies know that Decklt had nothing to do with their illicit activity.

Immediately cut all ties with the supplier and discontinue all products that are made using their materials.

Expert Solution

Questions # 17:

Which of the following may be liable to contribute to the assets of the company in the event of the company carrying on business at a time when it appeared that insolvency was inevitable?

Options:

The current directors and shareholders of the company.

The current and former directors of the company.

The current directors of the company.

The current directors and former shareholders of the company.

Expert Solution

Questions # 18:

Which of the following is incorrect in relation to shareholder meetings held by a public company?

Options:

A failure by a public company to hold an AGM is an offence by every officer of the company who is in default

A public company must hold an AGM within six months of the end of its accounting reference date

A public company must give at least 14 days notice of the AGM to its members

Short notice of an AGM by a public company must be given by all the members

Expert Solution

Questions # 19:

Company F is a new business that prides itself on being green and ethical. It uses renewable energy to run its factories, abides by all the rules and regulations and regularly donates money to sustainable development

charities around the world, despite occasionally being unable to fully pay its workers.

Why is Company F in violation of Carroll's CSR pyramid?

Options:

Because it is not profitable.

Because it should be donating to charities based in their own country.

Because using renewable energy to run factories generally isn't advised as it can be unreliable.

It is not in violation of Carroll's pyramid.

Expert Solution

Questions # 20:

Which ONE of the following requires the approval of a simple majority of all the company’s shareholders who are entitled to vote?

Options:

A written special resolution.

A special resolution.

A written ordinary resolution.

An ordinary resolution

Expert Solution

Questions # 21:

Which of the following is INCORRECT in relation to the UK Corporate Governance Code?

Options:

The board should be made up of a majority of non-executive directors.

All UK companies quoted on the London Stock Exchange have to include a statement of how the company has complied with the main principles set out in the Code.

There should be a clear division of responsibilities between the Chairman and the Chief Executive.

No director should be involved in deciding his or her own remuneration.

Expert Solution

Questions # 22:

Which of the following is correct in relation to loans to directors of a public company?

Options:

A public company which provides a loan to one of its directors commits a criminal offence unless the loan is approved by the shareholders

If a public company pays the debts of one of its directors on terms that the payment must be repaid by the director, the shareholders must approve the payment

A public company cannot make loans to its directors

A public company is not subject to any restrictions when making a loan to one of its directors

Expert Solution

Questions # 23:

Which of the following is one of the fundamental principles identified in the CIMA Code of Ethics?

Options:

Professional conscience and due care

Professional consideration and due care

Professional cooperation and due care

Professional competence and due care

Expert Solution

Questions # 24:

Which of the following are TWO reasons why new legislation might be introduced in response to corporate scandals?

Options:

To prevent this type of unethical behavior by making it illegal

To punish individuals for adhering to codes of ethics

To encourage companies to make their own decisions about ethical matters

To enforce minimum standards of behavior

Expert Solution

Questions # 25:

Which of the following statements reflects the leadership principles of corporate governance on board behavior?

Options:

Good governance practice vests the responsibility for board decision making with the CEO

Good governance practice encourages control to be concentrated in the hands of one director

Good governance practice encourages independent challenge and rigour in strategic development

Good governance practice encourages compromise, consensus and discourages confrontation in board decision-making

Expert Solution

Questions # 26:

Which of the following automatically causes a contract to become unenforceable?

(i) Where the contract has become frustrated.

(ii) Where the buyer was induced to enter into the contract by a fraudulent misrepresentation.

(iii) Where one of the parties has acted in breach of a warranty in the contract.

Options:

(i) only

(i) and (ii) only

(ii) only

(i), (ii) and (iii)

Expert Solution

Questions # 27:

S contracted to buy a portable television from AB (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?

(i) It is a criminal offence to attempt to exclude the term as this is a consumer sale.

(ii) The clause is void unless it can be shown to be reasonable.

(iii) The clause is void.

Options:

(i) only

(ii) only

(i) and (iii) only

(iii) only

Expert Solution

Questions # 28:

Which of the following are not owed duties by the directors?

(i) The company as whole.

(ii) Individual shareholders.

(iii) All the present and future shareholders.

Options:

(i) and (ii) only

(ii) only

(ii) and (iii) only

(iii) only

Expert Solution

Questions # 29:

In relation to the law of misrepresentation, which of the following statements is incorrect?

Options:

Damages are available for innocent misrepresentation under the Misrepresentation Act.

Misrepresentation renders a contract voidable.

A victim of fraudulent misrepresentation may seek rescission and damages.

A false statement of fact may give rise to remedies in both contract and tort.

Expert Solution

Questions # 30:

Section 172 of the Companies Act 2006 provides that directors must promote the success of the company for the benefit of its members. Which of the following factors must be taken account of in complying with this duty?

(i) The interests of the company's employees

(ii) The likely consequence of any decision in the long term

(iii) The impact of the company's operations on the community and the environment

Options:

(i) only

(i) and (ii) only

(ii) and (iii) only

(i), (ii) and (iii)

Expert Solution

Viewing page 2 out of 14 pages

Viewing questions 16-30 out of questions

Pass the CIMA CIMA Certificate BA4 Questions and answers with CertsForce