CIMA CIMAPRA17-BA4-1 Exam Practice Test Instant Access

Question 1

Which THREE of the following are characteristics of Limited Liability Partnerships ("LLPs")?

ALLPs can enter into contracts in their own name

BLLPs have no perpetual succession

CAn LLPs partners are jointly and severally liable for the debts of the LLP

DLLPs can hold property in their own name

ELLPs are usually created by formal registration under statute

Answer : A, D, E

Question 2

The majority of developed countries require publicly quoted companies and large companies to produce annual financial statements which are then audited by an external auditor.

Which of the following statements regarding the requirement for external audit is Incorrect?

AIndependent external audit gives confidence in the financial statements which is required as the directors have incentives to manipulate the financial statements presented to the shareholders

BAs the directors are responsible for the day-to-day management of the company, they hold more detailed information which is resolved by the presentation of financial statements to the shareholders and this needs to be guaranteed by independent external audit.

CIndependent external audit gives confidence in the financial statements by including the auditor's opinion on whether or not they show a true and fair view.

DAs the directors are responsible for the day-to-day management of the company, they hold more detailed information which is resolved by the presentation of financial statements to the shareholders and there is a need for this to be assured by independent external audit

Answer : B

Question 3

Internal audit is considered best practice but is not required by law Which of the following does NOT describe a benefit of internal audit to the board of directors?

AThe internal audit function can help the audit committee have confidence in the fraud prevention systems within the company

BThe internal audit function can provide independent assurance of the financial policies applied to the financial statements

CThe internal audit function can report back to the audit committee if controls are not as effective as they should be

DThe internal audit function can help the audit committee to discharge their responsibilities for the ongoing monitoring of the risk in the company

Answer : B

Question 4

Which of the following statements is correct in relation to private and public companies limited by shares?

AA private and public company are required to hold an AGM

BA public company cannot commence trading until it has satisfied minimum share capital requirements

CA public company is required to have at least one director

DA private company must have a qualified company secretary

Answer : B

Question 5

A manufacturing company has a policy of only buying raw materials which are produced within a 100 kilometer radius of its factory. This is an example of what aspect of CSR?

AQuality management

BEnvironmental impact reporting

CSupply chain management

DBrand management

Answer : D

Question 6

Y is completing an internal audit work on the system to approve suppliers to JKL Company. Which of the following would NOT promote a sustainable approach to the company's relationship with it\suppliers?

AEach supplier must comply with JKL's policy on limiting non-recyclable packaging to 10% of total packaging per contract

BHaulage firms must demonstrate that they have a policy to reduce emissions from their fleet

CEach year approval as a supplier to the company will only be granted if the prices paid to the supplier are reduced by 1%

DPreference will be given to local suppliers over those located at a greater distance from the company

Answer : C

Question 7

The IFAC has eight main drivers of sustainable corporate success. Which of the following are included in the eight mam drivers?

1, Innovation and adaptability

2. Effective leadership and strategy.

3. Board control and responsibility

A1 only

B2 and 3 only

C1 and 2 only

D2 only

Answer : B

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

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7