CIMA CIMAPRA17-BA4-1 Exam Questions Instant Access

Question 1

Which of the following is correct if a promoter orders goods or services on behalf of a company limited by shares which is not yet registered?

(i) The promoter is personally liable for the order.

(ii) The promoter and the company are jointly liable for the order.

(iii) If the company ratifies the order after its registration, the company is liable and the promoter's liability for the order ceases.

A(i) only

B(ii) only

C(iii) only

D(i) and (iii) only

Answer : A

Question 2

Section 14 of the Sale of Goods Act 1979 implies a condition into contracts for the sale of goods that the goods supplied will be of ''satisfactory quality.'' Exe inspected and purchased a new car. After travelling only 25 miles the engine seized up due to a latent defect. The manufacturer offered to repair the car in accordance with the guarantee but Exe has demanded a full refund.

Which of the following is correct?

AExe is entitled to a full refund of the purchase price

BAs Exe had the opportunity to inspect the car he cannot rely on Section 14 of the Sale of Goods Act 1979 and is not entitled to a full refund

CAs Exe has a manufacturers guarantee he is obliged to comply with his contract and have the car repaired

DExe has used the car to travel 25 miles and cannot therefore obtain a full refund of the purchase price

Answer : A

Question 3

B was an employee of Exe plc but his line manager made it practically impossible for him to continue his employment. B resigned without giving Exe plc any notice as required by his contract of employment.Which of the following is correct?

AAs B failed to provide any notice he has no claim against Exe plc even if B's resignation is regarded as constructive dismissal

BIf B's resignation is regarded as constructive dismissal he will still be able to claim against Exe plc but his failure to provide notice will reduce any compensation awarded.

CIf B's resignation is regarded as constructive dismissal he will be able to claim compensation from Exe plc and the fact that he has failed to provide notice will be regarded as irrelevant.

DIf B's resignation is regarded as constructive dismissal then his failure to provide notice will prevent any claim under unfair dismissal but not under wrongful dismissal.

Answer : C

Question 4

You always take the time to be polite to colleagues and listen to the opinions of others, even if you might disagree with their views. Which TWO of the personal qualities identified by the CIMA Code of Ethics does this demonstrate?

AResponsibility

BReliability

CRespect

DCourtesy

Answer : C, D

Question 5

Lotl is a well-known supermarket chain that has recently come under fire for not encouraging diversity within the organisation.

Because of this, it has been making efforts to make the business more diverse.

Which of the following are ways Lotl might do this?

Select ALL that apply.

AEncourage people from all backgrounds and cultures to apply for vacancies.

BEnsure that it offers equal opportunities to both able-bodied and disabled people.

CEnsure that the company has an even split of male and female employees at all levels.

DImport and sell food from all over the world.

EEnsure that their in-store signs are written in at least five different languages.

Answer : A, B, C

Question 6

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 7

Being able to be trusted by others to be dependable reflects the personal quality identified by the CIMA Code of Ethics as:

ATraditionalism

BReliability

CRespect

DTransparency

Answer : B

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