CIMA BA4 : Fundamentals of Ethics - Corporate Governance and Business Law
- Exam Code: BA4
- Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
- Updated: Sep 17, 2026
- Q & A: 660 Questions and Answers
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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| Company Administration | 10% | - Corporate legal administration
|
| Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Corporate social responsibility
|
| Business Ethics and Ethical Conflict | 30% | - Ethical principles and professional behaviour
|
| General Principles of Legal System, Contract and Employment Law | 15% | - Business law fundamentals
|
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
A manufacturing company has a policy of only buying raw materials which are produced within a 100 kilometer radius of its factory. This is an example of what aspect of CSR?
- A. Quality management
- B. Environmental impact reporting
- C. Supply chain management
- D. Brand management
Correct Answer: D 🗳️
If financial statements give a true and fair view, then they:
- A. are guaranteed to be free from material misstatement
- B. faithfully present the financial position and performance of an entity on the dates being reported
- C. indicate that the entity has been managed properly through the period under review
- D. are prepared in a timely manner for the benefit of the users
Correct Answer: D 🗳️
Which of the following accountants have breached CIMA's ethical principle of professional behaviour:
Select ALL that apply.
- A. Dave - Most recent set of financial reports were found to contain inaccuracies because he didn't check them when he was finished.
- B. Sara - Accepted an offer of a free week's stay at a hotel she was due to audit.
- C. Mike - Posted a series of disparaging tweets about a rival external auditing firm.
- D. Tim - Told his friends at the pub how much money one of his clients had made in the last financial quarter.
- E. Kara - Recently got a new job as a management account by lying about the number of accountancy qualifications she has.
Correct Answer: C,E 🗳️
In 2011 Exe Bank plc granted a loan of £200,000 to Wye Ltd secured by a fixed charge over the company's land and a floating charge over all the company's other assets. Wye Ltd remains solvent but has now failed to meet its monthly repayments for three months.
Which of the following options are available to Exe Bank plc?
(i) Sue Wye Ltd for breach of contract.
(ii) Appoint an administrator
(iii) Petition for the compulsory winding up of Wye Ltd.
- A. (i) and (ii) only
- B. (i), (ii) and (iii)
- C. (ii) only
- D. (i) only
Correct Answer: B 🗳️
SuperSole eventually decides to outsource its internal audit.
Which of the following are benefits it might experience from doing so?
Select ALL that apply.
- A. Less time taken
- B. Less risk of confidential information leaking
- C. Flexibility to increase or reduce in size
- D. Readily available expertise
- E. More independent auditing process
- F. Lower costs
Correct Answer: C,D,E,F 🗳️
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