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CIMA BA4 Exam Syllabus Topics:

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

1. T contracted to buy a washing machine from AB (Retailers) Ltd for his personal use at home. The contract contained a term excluding liability for any breach of the condition implied by the Sale of Goods Act 1979 that the goods should be of "satisfactory quality". The contract was on AB (Retailers) Ltd's standard form contract.
Which of the following is correct?
(i) Conditions implied by the Sale of Goods Act 1979 cannot be excluded in any sale.
(ii) This is a consumer sale and the clause excluding liability is void.
(iii) This is a non-consumer sale and the clause is void unless reasonable.

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

2. The Auditing Practices Board has an objective of establishing ethical standards in relation to which aspects of the work of external auditors and those providing assurance services?

A) Transparency, competitiveness and value
B) Transparency, value and integrity
C) Independence, objectivity and integrity
D) Independence, objectivity and competitiveness

3. Which of the following is not valid consideration?

A) Past consideration.
B) A promise to make an early repayment of a debt.
C) Payment handed over at the time of the contract.
D) Payment to be made upon delivery of the goods.

4. Which of the following statements refer to PLCs? Select ALL that apply.

A) Can offer shares on the stock market.
B) Must hold a minimum capital of $25,000
C) Registered under the Companies Registrar.
D) Never has a suffix at the end of the company name.
E) Generally small enterprises.

5. Which of the following is incorrect?

A) A floating charge is a charge over a class of assets which change from time to time.
B) A floating charge must be registered at Companies House within 21 days of its creation, otherwise the charge is void against the other creditors.
C) A floating charge must be registered at the company's registered office, but a failure to do so does not affect the validity of the charge.
D) A floating charge is a charge over a class of company assets which the company is unable to deal with freely in the ordinary course of business.

Solutions: