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CIMA BA4 Exam Syllabus Topics:

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

1. Company A has recently been having problems matching the views of its employees to its own. Which of the following might help their situation? Select ALL that apply.

A) Change its views so that it matches each of their employees.
B) Only hire those who share the company's views.
C) Implement a weekly hour-long session that recaps the company's values. All employees must attend.
D) Threaten legal action against those who regularly ignore the company's ethics.
E) Remove any barriers that might prevent an employee from adhering to the company's ethics.
F) Teach employees the company's values and train them to follow them.
G) Discipline those who regularly ignore the company's rules and values.
H) Ensure management level employees follow the actions and behaviour of those higher up.
I) Reward those who consistently recognise and and adhere to the company's values.

2. Which of the following will NOT as a general rule amount to consideration?

A) A promise to do more than was originally agreed.
B) A promise to do an act in return for payment.
C) A promise to carry out an existing contract.
D) A promise to pay the amount due at an early date.

3. Which of the following is not a legal person?

A) A sole trader.
B) A public limited company.
C) A firm of accountants.
D) A private limited company.

4. Steve manages the accounts for a large software company. He's good at his job, though it has recently emerged that he is going through quite a messy divorce.
Why should the company's senior management be most concerned?

A) Because there is a risk Steve could get aggressive with other employees within the company.
B) Because Steve might start to be untruthful and not disclose information that he should.
C) Because Steve could be motivated to steal from the company.
D) Because Steve might not work as hard.

5. Which of the following are situations involving conflicts of interest? Select ALL that apply.

A) Ben - Regularly works two hours later than he should because his boss constantly gives him large amounts of work to do.
B) Tyrone - Works standard hours, though is usually unable to do any overtime due to family commitments.
C) Shannon - A department manager at an IT firm who regularly goes out drinking with her team members.
D) Nina - Receives a large boxful of chocolate delivered to her house from the chocolate factory she is due to audit
E) Tina - A personal accountant who actively tries to build a rapport with her clients, though doesn't engage with them outside working hours.

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