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CIMA BA4 Exam Syllabus Topics:

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

1. S is management accountant for a small retail company. S has discovered a possible fraud in the purchasing department. The manager of that department has told S that he is aware of the fraud and will 'deal with it'.
Which ONE of the following would it be appropriate for S to do?

A) Ask for advice from the company's external auditors
B) Ask for confirmation in writing from the manager
C) Bring the matter to the attention of the police
D) Advise a director of the company
E) Nothing

2. You work for a company that designs and manufactures children's toys. Which of the following is NOT an example of social responsibility that your company might choose to address?

A) The use of chemicals in manufacturing
B) The environmental impact of transporting toys from the country of manufacture to the country of sale
C) The welfare of workers who assemble the company's products
D) Whether the recommended retail price of a particular product provides sufficient margin after the unit cost of production is taken into account

3. In the event of a breach of contract, what is the purpose of damages?
(i) To punish the contract breaker.
(ii) To compensate the innocent party.
(iii) To ensure that the innocent party makes a profit.

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

4. Which of the following requires the approval of a simple majority of all the company's shareholders who are entitled to vote?

A) A written special resolution
B) A written ordinary resolution
C) A special resolution
D) An ordinary resolution

5. Y has an opening at his company for a trainee accountant. His nephew is just about to leave school, and Y receives a call from his sister suggesting that her son should get the job. Y's firm has a strict policy with regards to the employment of family members, especially in finance departments. But for Y, looking after his family is very important, and he is sure he will be an excellent staff member. Y has an ethical dilemma because there is tension between:

A) His professional and corporate values
B) His personal and professional values
C) His personal and societal values
D) His personal and corporate values

Solutions: