CIMA BA4 Exam : Fundamentals of Ethics - Corporate Governance and Business Law

  • Exam Code: BA4
  • Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
  • Updated: Sep 08, 2026
  • Q & A: 660 Questions and Answers

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CIMA BA4 Exam Syllabus Topics:

SectionWeightObjectives
Business Ethics and Ethical Conflict30%- Professional ethics principles
- Ethical dilemmas and resolution
- Nature and importance of ethics
Company Administration10%- Types of business organisation
- Administration and management of companies
General Principles of the Legal System, Contract and Employment Law15%- Employment law essentials
- Contract law basics
- Legal system fundamentals
Corporate Governance, Controls and Corporate Social Responsibility45%- Role of board and directors
- Internal controls and audit
- Principles of corporate governance
- Corporate social responsibility (CSR)

CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

Question #1

Which of the following is CORRECT in relation to a Limited Liability Partnership ("LLP")?
(i) An LLP is formed by registration with the Registrar of Companies
(ii) Unlike the articles of a company the internal rules of an LLP are not available for public inspection (iii) An LLP is liable to pay corporation tax on its profits

  • A. (i) only
  • B. (i), (ii) and (iii)
  • C. (i) and (ii) only
  • D. (ii) and (iii) only
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #2

Which of the following are situations in which the accountant is permitted to disclose confidential information?
Select ALL that apply.

  • A. A similar firm wants to take a look at the company's most recent financial report.
  • B. One of the company's clients permits the disclosure of their financial records.
  • C. A family member wants to know the details of the company's clients' finances.
  • D. The company is being investigated for legal infringement.
Reveal Solution  Discussion  0

Correct Answer: B,D  🗳️

Question #3

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

  • A. In general, silence cannot amount to a misrepresentation.
  • B. An honest statement of opinion by a layman cannot amount to a misrepresentation.
  • C. A person cannot be liable for misrepresentation, if the truth of the statement could be determined by the misrepresentee making reasonable enquiries.
  • D. A misrepresentation is not actionable unless it induced the claimant to contract.
Reveal Solution  Discussion  0

Correct Answer: C  🗳️

Question #4

Which of the following is the responsibility of the Chairman, according to the UK Corporate Governance Code?

  • A. Carrying out the policies of the Board
  • B. Operational control
  • C. Authorizing major investments
  • D. Controlling the workings of the Board
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #5

Who should check that a company's financial statements provide a true and fair view of its financial performance?

  • A. The auditor and the company
  • B. The auditor
  • C. The company
  • D. Shareholders
  • E. The auditor and shareholders
  • F. The company and shareholders
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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