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

BA4 real exams

Exam Code: BA4

Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law

Updated: Sep 10, 2026

Q & A: 660 Questions and Answers

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CIMA BA4 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: General Principles of Legal System, Contract and Employment Law15%- Business law fundamentals
  • 1. Contract formation and enforcement
    • 2. Employment law basics
      • 3. Legal systems and sources of law
        Topic 2: Company Administration10%- Corporate legal administration
        • 1. Corporate compliance and filings
          • 2. Company formation and structure
            Topic 3: Corporate Governance, Controls and Corporate Social Responsibility45%- Internal controls and audit
            • 1. Risk management and control systems
              • 2. Internal audit and external audit roles
                - Corporate social responsibility
                • 1. CSR principles and sustainability reporting
                  - Corporate governance framework
                  • 1. Role of boards and directors
                    • 2. OECD principles and governance codes
                      Topic 4: Business Ethics and Ethical Conflict30%- Ethical principles and professional behaviour
                      • 1. Professional independence, objectivity, and integrity
                        • 2. Nature of ethics and values in accounting
                          • 3. Ethical dilemmas and conflict resolution

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

                            Question #1

                            Which of the following is an example of a safeguard created by the profession, legislation or regulation as opposed to a safeguard in the work environment?

                            • A. Leadership of the organization which stresses the importance of compliance with the fundamental principles
                            • B. Professional standards
                            • C. Leadership of the organization which establishes the expectation that members of an assurance team will act in the public interest
                            • D. An organization having documented internal policies and procedures requiring compliance with the fundamental principles
                            Reveal Solution  Discussion  0

                            Correct Answer: B  πŸ—³οΈ

                            Question #2

                            Which of the following resolutions of a private company limited by shares CANNOT be effected by using the written resolution procedure?
                            (i) An ordinary resolution to dismiss a director.
                            (ii) A special resolution to misapply statutory pre-emption rights in relation to a new issue of shares.
                            (iii) An alteration of the articles of association.

                            • A. (iii) only
                            • B. (ii) only
                            • C. (i) only
                            • D. (i) and (ii) only
                            Reveal Solution  Discussion  0

                            Correct Answer: C  πŸ—³οΈ

                            Question #3

                            C sued D in the tort of negligence in order to recover compensation for injuries suffered as a result of D breaking his duty of care to C.
                            For what injuries can C claim compensation?

                            • A. All physical but not psychiatric injuries caused by D.
                            • B. All injuries caused by D.
                            • C. All injuries which were a direct consequence of D's actions.
                            • D. All reasonably foreseeable injuries caused by D.
                            Reveal Solution  Discussion  0

                            Correct Answer: D  πŸ—³οΈ

                            Question #4

                            Which of the following is NOT a 'financial stakeholder' of an organization?

                            • A. Customer
                            • B. Media
                            • C. Government
                            • D. Employee
                            Reveal Solution  Discussion  0

                            Correct Answer: B  πŸ—³οΈ

                            Question #5

                            Evidence suggests that during a recession, companies with a clear sense of ethical direction will:

                            • A. Continue to be profitable
                            • B. Lose business to unethical companies
                            • C. Be a poor investment
                            • D. Be more expensive to run
                            Reveal Solution  Discussion  0

                            Correct Answer: A  πŸ—³οΈ

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