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

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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 statements is correct?

A) The Articles of Association of a private company limited by shares may be altered by a board resolution.
B) The Articles of Association of a private company limited by shares may be altered by a written ordinary resolution.
C) The Articles of Association of a private company limited by shares may be altered by a special resolution.
D) The Articles of Association of a private company limited by shares may be altered by ordinary resolution.

2. Which of the following is incorrect in relation to remedies for breach of contract?

A) Equitable remedies are only available if the common law remedy of damages is inadequate.
B) Damages cannot be recovered for losses over and above those arising naturally from the breach.
C) Contracting parties are bound by liquidated damages clauses so long as they are genuine attempts to pre-estimate the loss caused by a breach of contract.
D) A victim of a breach of contract may fail to recover damages if he has failed to mitigate his loss.

3. 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) As an executive director Z is an employee of Zed Ltd and is entitled to employment protection rights.
B) Z is entitled to vote as a shareholder in relation to a proposed resolution to dismiss him as a director.
C) Despite the provision in the articles Z can be dismissed at any time by an ordinary resolution.
D) 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.

4. Which of the following statements is incorrect?
(i) A term may be implied into a contract on the basis of previous dealings between the parties.
(ii) A term may be implied into a contract by statute.
(iii) A term may be implied into a contract by a court where it would be reasonable to imply it.

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

5. J is at his company's reception desk when the promotions manager of a new restaurant and bar nearby hands him a number of vouchers for cheap meals and drinks. At the promotion manager's request, J agrees to share out the vouchers among his company's employees. J does not earn much and is tempted to keep the vouchers for himself and his friends. Is this an ethical issue and why?

A) Yes - promotional offers of this sort are unethical and J should throw away all of the vouchers
B) No - the vouchers were given to J, so he can do what he likes with them
C) No - as long as J gives vouchers to other company employees who earn as little as he does
D) Yes - the vouchers were given to J on the understanding that he would distribute them to other employees rather than keep them for himself

Solutions: