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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 contracts might be specifically enforceable?

A) D has contracted to purchase a number of tins of fruit for her business but the seller has now stated that he no longer wishes to proceed with the contract.
B) A has contracted to sell his house to B but has changed his mind and no longer wishes to sell it.
C) C has contracted to buy a new Ford motor car but the garage is now refusing to honor the contract.
D) E has contracted to sing at a concert organized by F, but E has withdrawn as he has received a more lucrative offer from G.

2. Which of the following is correct in relation to international relations?
(i) International regulations are voluntarily entered into by commercial and professional bodies to standardize practices and procedure to make it easier to enter into international trading agreements.
(ii) International regulations which have been agreed by the professional bodies of different states are only binding on the members of those bodies or those who choose to adopt them.
(iii) International regulations may attain the force of law by being adopted by the legislatures of individual states

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

3. Wye Ltd is considering appointing Anne as a director of the company. Which of the following is incorrect?
(i) If Anne is an un-discharged bankrupt, she cannot act as a company director.
(ii) If Anne is the subject of a disqualification order, she cannot act as a company director.
(iii) If Anne has already been appointed a director of another company, she cannot also act as a director of Wye Ltd.

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

4. Shiny Steel is a steel manufacturer keen on increasing short-term shareholder interest. It has a number of factories in the country, which all have to abide by the new legislation that states carbon emissions shouldn't exceed a particular limit.
Baring this in mind, which of the following might give Shiny Steel the best chance of increasing short- term shareholder interest?

A) Ensure that its carbon emission fall just below the legal limit.
B) Increase production, even if carbon emissions exceed the legal limit.
C) Sign up to a campaign dedicated to protecting the rainforests.
D) Invest in new machinery that reduces emissions close to zero.

5. Which of the following statements is correct?

A) The question as to whether a worker is an employee or an independent contractor is one of law.
B) Whether a worker is an employee or an independent contractor depends entirely on the application of the control test.
C) The question as to whether a worker is an employee or an independent contractor is one of fact and law.
D) The question as to whether a worker is an employee or an independent contractor is one of fact.

Solutions: