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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Business Ethics and Ethical Conflict | 30% | - Concepts of ethics and business ethics - CIMA Code of Ethics and professional values - Identification and resolution of ethical dilemmas - Ethics vs law and regulation |
| Topic 2: General Principles of the Legal System, Contract and Employment Law | 15% | - Terms, breach and remedies of contract - Essential elements of a valid contract - Structure and sources of law - Employment law, rights and obligations |
| Topic 3: Company Administration | 10% | - Company financing and capital - Formation and constitution of companies - Types of business organizations - Corporate insolvency and administration |
| Topic 4: Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Principles and frameworks of corporate governance - Corporate social responsibility and sustainability - External audit and assurance - Internal control and risk management - Roles and responsibilities of directors and officers |
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
1. Which of the following is INCORRECT in relation to corporate governance in the UK?
A) The majority of shares in listed public companies are usually held by the board so that independent shareholders have insufficient power to exercise control over the board.
B) Listed public companies in the UK are required to disclose in their annual reports the extent to which they have complied with the requirements of corporate governance.
C) The UK Corporate Governance Code contains codes of best practice which do not have the force of law.
D) Corporate governance is primarily concerned with the ability to control the activities of board of directors of listed public limited companies.
2. The articles of association of Zed Ltd provide that Z is to be an executive director for life. Zed is also a shareholder in the company.
Which ONE of the following is CORRECT?
A) Z may sue the company for breach of contract in respect of the provision in the articles of association as they form a contract between the members and the company.
B) As an executive director Z is an employee of Zed Ltd and is entitled to employment protection rights.
C) Z is entitled to vote as a shareholder in relation to a proposed resolution to dismiss him as a director.
D) Despite the provision in the articles Z can be dismissed at any time by an ordinary resolution.
3. Which of the following is the main legislature within the European Union?
A) The European Court of Justice
B) The European Commission
C) The European Parliament
D) The Council of the European Union
4. A, B C and D are sole directors and shareholders of EFG Company each holding 25% of the shares in the company. The articles of association of EFG Company state that "the directors cannot enter into any contract on behalf of the company exceeding $30,000 without the agreement of all the shareholders''.
B contracted on behalf of the company for $40,000 with Y Company without the agreement of the other shareholders. Which of the following is correct?
1. Y Company may enforce the contract against EFG Company
2. A, C and D may obtain an injunction to stop the contract being canted out
3. B may be liable to EFG Company for breach of duty.
A) 1 only
B) 1,2 and 3
C) 1 and 3 only
D) 1 and 2 only
5. How might a company ensure that an audit is independent?
A) Conduct an internal audit.
B) Have the auditor investigate all possible wrongdoings, including fraud.
C) Have the auditor review or report on the performance of management
D) Hire an external auditor.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: D |






