1. Home
  2. CIMA
  3. CIMA Certificate
  4. BA4
  5. Fundamentals of Ethics, Corporate Governance and Business Law Questions and Answers

Pass the CIMA CIMA Certificate BA4 Questions and answers with CertsForce

 CIMA Exams      Go to Exam Detail      Get Premium Access
Viewing page 8 out of 14 pages
Viewing questions 106-120 out of questions
Questions # 106:

Intimidation threats to compliance with fundamental principles are described as threats that may occur

Options:
A.

as a result of the financial or other interests of a professional accountant or of an immediate or close family member

B.

when a previous judgment needs to be re-evaluated by the professional accountant responsible for that judgment

C.

when a professional accountant promotes a position or opinion to the point that subsequent objectivity may be compromised

D.

when a professional accountant may be deterred from acting objectively by threats, actual or perceived

Expert Solution
Questions # 107:

Which of the following is INCORRECT in relation to directors' duties?

Options:
A.

Directors owe a duty to promote the success of the company.

B.

Directors' duties are codified in the UK Corporate Governance Code.

C.

Directors must act in accordance with the company's constitution.

D.

Directors' duties are owed to the shareholders as a whole.

Expert Solution
Questions # 108:

Which of the following auditors would need to issue a disclaimer of opinion? Select ALL that apply.

Options:
A.

Miguel - Unable to conduct a full audit due to the client's refusal to provide access to the company's financial records.

B.

Abe - Has limited time to complete an audit, so performs a brief check of each department

C.

India - Has noticed that the company she is auditing has adopted a new set of accounting rules unusually early.

D.

Sean - Discovers during an audit that the company has overstated the value of its assets.

Expert Solution
Questions # 109:

A was disqualified from driving but continued his employment as a driver for XYZ plc. The company discovered that A had lost his driving license and immediately dismissed him without notice.  

 

Which of the following is correct? 

 i. As no notice was provided A's dismissal amounts to constructive dismissal.

ii. The employer was justified in dismissing A without notice as he was unable to continue his employment.

iii. A may make a claim for wrongful dismissal as, although his dismissal was justified, he was entitled to notice.  

Options:
A.

(i) only

B.

(ii) only

C.

(i) and (ii) only

D.

(iii) only

Expert Solution
Questions # 110:

Which of the following is NOT a 'financial stakeholder' of an organization?

Options:
A.

Customer

B.

Media

C.

Employee

D.

Government

Expert Solution
Questions # 111:

Which of the following statements would amount to indirect discrimination in the workplace?

Options:
A.

Applicants for a motor mechanic s position are only considered if they are male

B.

All employees in the sales departments are required to be smartly dressed and clean shaven

C.

Only women are promoted in the employee counseling department

D.

Employee X is not considered for an excellence award because she raised a complaint about sexist comments on the factory floor

Expert Solution
Questions # 112:

Which of the following have made an error of principle? Select ALL that apply.

Options:
A.

Svetlana - Recorded a payment of £530 in the company's expenses account rather than its sales account.

B.

Jim - Recorded a payment of £1,000 in both the company's expenses account and the sales account.

C.

David - Forgot to record a payment of £50 in the company's sales account.

D.

Jean - Recorded a customer payment as £120 when they actually paid £150.

E.

Janet - Recorded the payment made by one customer in another customer's account.

Expert Solution
Questions # 113:

Which of the following is correct?

Options:
A.

A special resolution may be passed by 51% of the shareholders who are present voting in favor of the proposal either in person or by proxy.

B.

A special resolution may be passed by 75% of the shareholders who are present voting in favor of the proposal either in person or by proxy.

C.

A special resolution may only be passed by 75% of all the company's shareholders voting in favor of the proposal either in person or by proxy.

D.

A special resolution may only be passed by all the company's shareholders voting in favor of the proposal either in person or by proxy.

Expert Solution
Questions # 114:

Which of the following are situations involving familiarity threats? Select ALL that apply.

Options:
A.

Steve - A business manager who hires his 18-year-old son for a managerial level job.

B.

Kay - A department manager who doesn 't reprimand one of her team members for doing a job wrong because they are friends.

C.

Angela - Has worked on the production line for the past seven years.

D.

Steve - Conducts monthly reviews of his team's performance (the team hasn't changed for the past five years).

E.

Bryan - Has worked as an accountant for the past ten years. He always makes sure he is up-to-date with changes in the industry.

Expert Solution
Questions # 115:

Which of the following is correct in relation to a company's ability to have a restricted objects clause in its constitution?

(i) A company may restrict its objects in its constitution

(ii) Any clause restricting the company's objects should be included in the company's articles of association

(iii) The shareholders may pass a special resolution to alter the company's constitution by including a clause which restricts the company's objects

Options:
A.

(i) only

B.

(ii) only

C.

(i) and (ii) only

D.

(i), (ii) and (iii)

Expert Solution
Questions # 116:

Which of the following increase the likelihood of having a successful ethical code? Select ALL that apply.

Options:
A.

Active leadership

B.

Buy-in

C.

Training programmes

D.

Staff helplines

E.

Communication with staff

F.

Consistency of conduct

Expert Solution
Questions # 117:

Which of the following cases of dismissal are likely to be deemed automatically fair by an employment tribunal?

Options:
A.

Tom - A 75-year-old firefighter whose boss made him retire because of the physical nature of the job.

B.

Nigel - A security guard who had been dismissed for drinking on the job.

C.

Sara - An accountant who was dismissed for lying about her qualifications during her initial interview.

D.

Bob - An employee at a biscuit factory who was dismissed because the company they worked for wanted to save money despite having no debts.

E.

Anita - An employee at an IT firm who was dismissed by her boss because she is a graduate who doesn't have much experience.

Expert Solution
Questions # 118:

Which of the following are qualities the CIMA accountant are expected to display and develop? Select ALL that apply.

Options:
A.

Reliability

B.

Responsibility

C.

Respect

D.

Timeliness

E.

Courtesy

F.

Relevance

G.

Faithful representation

Expert Solution
Questions # 119:

Completing work within established deadlines reflects the personal quality identified by the CIMA Code of Ethics as:

Options:
A.

Responsibility

B.

Accuracy

C.

Timeliness

D.

Tardiness

Expert Solution
Questions # 120:

After the enactment of the Companies Act 2006, which of the following is incorrect in relation to a reduction of capital by a private company?

Options:
A.

It is not necessary for the company's Articles of Association to authorize a reduction

B.

The shareholders must pass a special resolution

C.

The directors must make a statement as to the company's solvency

D.

The reduction must be approved by the court

Expert Solution
Viewing page 8 out of 14 pages
Viewing questions 106-120 out of questions