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CIMA BA4 Exam Syllabus Topics:

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

1. Which of the following remedies is available as of right in the event of a breach of contract?
(i) Specific performance.
(ii) Damages.
(iii) An injunction.

A) (i) only
B) (ii) only
C) (ii) and (iii) only
D) (iii) only

2. Steve manages the accounts for a large software company. He's good at his job, though it has recently emerged that he is going through quite a messy divorce.
Why should the company's senior management be most concerned?

A) Because Steve could be motivated to steal from the company.
B) Because Steve might start to be untruthful and not disclose information that he should.
C) Because there is a risk Steve could get aggressive with other employees within the company.
D) Because Steve might not work as hard.

3. Which of the following is correct?
(i) A contract for the sale of land must be in writing.
(ii) A consumer credit agreement must be in writing.
(iii) A contract of employment must be in writing.

A) (i), (ii) and (iii)
B) (i) only
C) (i) and (iii) only
D) (i) and (ii) only

4. B agreed in his contract that he would not work for a competitor of Gee Ltd for a period of 12 months after leaving the company's employment. On leaving Gee Ltd, B worked for Zed Ltd, a competitor of Gee Ltd. If the restriction in B's contract with Gee Ltd should be found to be reasonable, which of the following remedies is Gee Ltd entitled to?
(i) A decree of specific performance forcing B to comply with his contract with Gee Ltd.
(ii) Damages in respect of any loss caused by B's breach of contract.
(iii) An injunction to stop B working for Zed Ltd.

A) (i), (ii) and (iii)
B) (i) only
C) (i) and (ii) only
D) (ii) and (iii) only

5. Which of the following is correct?
(i) Purchasing a "shelf company" enables business to commence more quickly.
(ii) It is generally cheaper to purchase a "shelf company", than to arrange for a solicitor or accountant to register a new company.
(iii) Incorporating a company by registration enables the company's documents to be drafted to the particular needs of the incorporators.

A) (i), (ii) and (iii)
B) (i) and (iii) only
C) (i) and (ii) only
D) (ii) and (iii) only

Solutions: