CIMA CIMAPRA17-BA4-1 Exam Questions Instant Access

Question 1

Tom is a director of XYZ Ltd. The company is considering purchasing Tom's business for 200,000. Which of the following is incorrect?

ATom cannot contract with XYZ Ltd as he would be placing himself in a conflict of interest and duty situation.

BTom must formally disclose his interest in the contract to the board.

CThe shareholders may approve the arrangement by passing an ordinary resolution.

DThe purchase consideration may be in the form of cash or shares.

Answer : A

Question 2

S Ltd has an issued share capital of 1000 ordinary shares of 1 each.Some of the shareholders would like to change the name of the company.What is the minimum number of votes which must be cast in favor of the resolution to make it effective?

A501

B500

C750

D1,000

Answer : C

Question 3

Allowing bias, conflict of interest or undue influence of others to override professional or business judgments violates the CIMA Code of Ethics fundamental principle of:

AObjectivity

BTransparency

CTruthfulness

DObjection

Answer : A

Question 4

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

Question 5

In Germany the two-tier board structure is used by many limited liability companies. A two-tier board structure is made up of a Management Board and which other organ?

AA Supervisory Board

BA Nominations Committee

CA Quality Assurance Board

DA Remuneration Committee

Answer : A

Question 6

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?

ADespite the provision in the articles Z can be dismissed at any time by an ordinary resolution.

BAs an executive director Z is an employee of Zed Ltd and is entitled to employment protection rights.

CZ 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.

DZ is entitled to vote as a shareholder in relation to a proposed resolution to dismiss him as a director.

Answer : C

Question 7

Which of the following is incorrect in relation to the remedy of damages?

AA contract breaker is liable for losses which arise naturally from the breach.

BA contract breaker is liable for special losses which are within his contemplation.

CDamages will not normally be awarded for the distress caused to the innocent party by the breach.

DDamages are designed to compensate the innocent party and to punish the contract breaker.

Answer : D

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