CIMA CIMAPRA17-BA4-1 Exam Practice Test Instant Access

Question 1

Which of the following is the main legislature within the European Union?

AThe Council of the European Union

BThe European Parliament

CThe European Court of Justice

DThe European Commission

Answer : A

Question 2

You have been charged with the task of reviewing the CSR report for your company, GHI. Which of the following aspects of the report represent a lack of compliance with the Global Reporting Initiative G4 Sustainability Reporting Guidelines?

AThe CSR report reflects GHI's significant economic, environmental and social impact

BThe CSR report includes both positive and negative aspects of GHI's performance for the year

CThe CSR report presents information using visual aids that improve the accessibility and understand ability of the information for stakeholders.

DThe CSR report is compiled and published only when material developments within GHI policies and achievements become available to warrant the expense of producing a new report

Answer : A

Question 3

In which of the following business organisations do the members have limited liability and the ability to keep the constitution private?

AA limited liability partnership

BA sole trader

CA company limited by shares

DA general partnership

Answer : A

Question 4

On 1st October X Ltd wrote to Y Ltd offering to sell a machine at a price of 5,000. The letter stated that Y Ltd must give X Ltd ''notice in writing'' of its acceptance of the offer by 8th October. Y Ltd posted its acceptance on 5th October and this reached X Ltd on 7th October. In the meantime X Ltd sent a letter to Y Ltd on 4th October revoking its offer, and this reached Y Ltd on 8th October.

Which of the following is correct?

AThere is no contract between X Ltd and Y Ltd because the offer was withdrawn on 4th October when the revocation was sent to Y Ltd.

BThere is no contract between X Ltd and Y Ltd because the offer was withdrawn on 8th October when the revocation was received by Y Ltd.

CX Ltd and Y Ltd contracted on 5th October.

DX Ltd and Y Ltd contracted on 7th October.

Answer : D

Question 5

Which ONE of the following is NOT contained within form IN01 which must be submitted to the Registrar of Companies in order to register a company limited by shares?

AThe name of the company

BThe objects of the company

CThe location of the company's registered office

DThe names of the first directors

Answer : B

Question 6

Which ONE of the following was NOT a recommendation of the Cadbury Committee Report 1992?

AIndependent non-executive directors should be appointed to the boards of listed companies

BAn audit committee consisting of a majority of non-executive directors should be established to oversee the company's finances

CExecutive directors should not be offered service contracts for more than five years unless approved by the shareholders in a general meeting

DThe remuneration packages of executive directors should be agreed by a remuneration committee wholly or mainly comprising non-executive directors

Answer : C

Question 7

An investigation has been launched against Company G, a supermarket, after suspicions were raised about its treatment of certain employees.

It was later found that Company G were guilty of direct discrimination.

Which of the following are the ways in which Company G were found to be directly discriminating?

Select ALL that apply.

AOnly offering pay rises to female employees if they were under a certain weight.

BRejecting job applications if the applicant had a foreign-sounding name.

COnly offering senior managerial roles to male employees.

DMaking it company policy that no one over 65 could be hired.

EHaving a rule that no one under 5ft tall could be hired.

Answer : A, B, C

CIMA BA4 - Fundamentals of Ethics, Corporate Governance and Business Law CIMAPRA17-BA4-1 Exam Practice Test