CIMA BA4 : Fundamentals of Ethics - Corporate Governance and Business Law

  • Exam Code: BA4
  • Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
  • Updated: Sep 12, 2026
  • Q & A: 660 Questions and Answers

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CIMA BA4 Exam Syllabus Topics:

SectionWeightObjectives
General Principles of the Legal System, Contract and Employment Law15%- Structure and sources of law
- Employment law, rights and obligations
- Terms, breach and remedies of contract
- Essential elements of a valid contract
Corporate Governance, Controls and Corporate Social Responsibility45%- Roles and responsibilities of directors and officers
- Internal control and risk management
- Principles and frameworks of corporate governance
- Corporate social responsibility and sustainability
- External audit and assurance
Business Ethics and Ethical Conflict30%- Concepts of ethics and business ethics
- Ethics vs law and regulation
- Identification and resolution of ethical dilemmas
- CIMA Code of Ethics and professional values
Company Administration10%- Company financing and capital
- Types of business organizations
- Corporate insolvency and administration
- Formation and constitution of companies

CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

Question #1

Company B wants to implement ethical control over its staff. It wants to do this by implementing a strong organisational culture.
Which of the following are ways in which the organisation could exercise control in regards to its organisational culture?
Select ALL that apply.

  • A. Ensure that the company's chairman and CEO lead by example.
  • B. Ensure that disciplinary action is taken when the company's ethical code is broken.
  • C. Introduce a statement of values which outlines what the organisation stands for.
  • D. Only employ directors who have proven strong moral values.
  • E. Ensure the company's ethical expectations are thoroughly communicated.
  • F. Ensure that the company's organisational systems encourage adherence to its ethics.
Reveal Solution  Discussion  0

Correct Answer: A,C,E,F  🗳️

Question #2

Which of the following are situations involving familiarity threats? Select ALL that apply.

  • A. Kay - A department manager who doesn 't reprimand one of her team members for doing a job wrong because they are friends.
  • B. Bryan - Has worked as an accountant for the past ten years. He always makes sure he is up-to-date with changes in the industry.
  • C. Angela - Has worked on the production line for the past seven years.
  • D. Steve - A business manager who hires his 18-year-old son for a managerial level job.
  • E. Steve - Conducts monthly reviews of his team's performance (the team hasn't changed for the past five years).
Reveal Solution  Discussion  0

Correct Answer: A,C,D  🗳️

Question #3

The fraud response is a key aspect of fraud risk management within an organisation. Which of the following does NOT describe the responsibility of key personnel within this plan?

  • A. Managers take responsibility for detecting fraud in their area
  • B. Audit committee members take responsibility for reviewing all fraud and then charge relevant staff with the task of taking appropriate action
  • C. The HR department takes responsibility for the disciplinary procedures and issues with employment law and practice
  • D. External auditors take responsibility for detecting fraud
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

Question #4

Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?
"A professional accountant should be straightforward and honest in all professional and business relationships"

  • A. Integrity
  • B. Objectivity
  • C. Professional competence and due care
  • D. Professional behavior
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

Question #5

In relation to the law of misrepresentation, which of the following statements is incorrect?

  • A. A victim of fraudulent misrepresentation may seek rescission and damages.
  • B. A false statement of fact may give rise to remedies in both contract and tort.
  • C. Misrepresentation renders a contract voidable.
  • D. Damages are available for innocent misrepresentation under the Misrepresentation Act.
Reveal Solution  Discussion  0

Correct Answer: D  🗳️

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