CIMA CIMAPRA17-BA4-1 Exam Practice Test Instant Access

Question 1

Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

AThe separation of the roles of Director and Company Secretary

BThe appointment of independent non-executive directors to the Board

CThe establishment of an audit committee

DThe identification of an independent director as primary shareholder contact

Answer : A

Question 2

Which of the following is INCORRECT in relation to Shari'ah law?

i. Shari'ah law is intended to provide for a person's spiritual well-being but is notconcerned with secular matters.

ii. The Sunnah is one of the primary sources of Shar'iah law.

iii. The salat (daily prayers) is one of the Five Pillars of Islam.

A(i) only

B(ii) only

C(i) and (ii) only

D(iii) only

Answer : A

Question 3

Abel has just completed an audit on a large law firm. He has decided to issue a modified audit report with a qualified opinion due to the issues he discovered regarding misstatements in the company's financial records.

Why has Abel decided to issue the report with a qualified opinion as opposed a different kind?

ABecause even though he has discovered material statements, he has not deemed them to be pervasive.

BBecause he has found the misstatements to be both material and pervasive.

CBecause he was unable to find enough suitable evidence to determine whether or not the misstatements were both material and pervasive.

DBecause he has come to the conclusion that the misstatements aren't an issue, but should be noted in the report.

Answer : A

Question 4

Which of the following may cause a director to be disqualified from acting as a director under the Company Directors Disqualification Act 1986?

(i) Persistent default by the director in complying with the filing requirements under the Companies Acts.

(ii) Causing a company to continue to trade at a time when the director ought to know that insolvency is inevitable.

(iii) Carrying on business with intent to defraud creditors.

A(i) only

B(i) and (ii) only

C(ii) only

D(i), (ii) and (iii)

Answer : D

Question 5

Which of the following are likely advantages of being a sole trader? Select ALL that apply.

ANo formal procedures required to set up the business.

BGreater degree of independence.

CThey retain all profits.

DExpansion is likely to be fast.

EWorking hours will be relatively short.

FThey have limited personal responsibility in regards to the debts of the business.

Answer : A, B, C

Question 6

You work for a chain of restaurants. The head chef of your flagship restaurant raises questions about the inclusion of highly endangered species of fish on the restaurant's menu. Is it an ethical issue and why?

AYes - because it could deny customers the choice of certain types of fish

BYes - because it relates to the environmental issue of overfishing and depletion of fish stocks

CNo - because it will cost the restaurant money to source alternative produce

DNo - because business cannot be accountable for environmental issues

Answer : B

Question 7

You work for a company that designs and manufactures children's toys. Which of the following is NOT an example of social responsibility that your company might choose to address?

AThe use of chemicals in manufacturing

BThe welfare of workers who assemble the company's products

CThe environmental impact of transporting toys from the country of manufacture to the country of sale

DWhether the recommended retail price of a particular product provides sufficient margin after the unit cost of production is taken into account

Answer : D

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