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CIMA BA4 Exam Syllabus Topics:

SectionWeightObjectives
General Principles of Legal System, Contract and Employment Law15%- Business law fundamentals
  • 1. Contract formation and enforcement
    • 2. Employment law basics
      • 3. Legal systems and sources of law
        Business Ethics and Ethical Conflict30%- Ethical principles and professional behaviour
        • 1. Professional independence, objectivity, and integrity
          • 2. Nature of ethics and values in accounting
            • 3. Ethical dilemmas and conflict resolution
              Corporate Governance, Controls and Corporate Social Responsibility45%- Corporate governance framework
              • 1. OECD principles and governance codes
                • 2. Role of boards and directors
                  - Corporate social responsibility
                  • 1. CSR principles and sustainability reporting
                    - Internal controls and audit
                    • 1. Internal audit and external audit roles
                      • 2. Risk management and control systems
                        Company Administration10%- Corporate legal administration
                        • 1. Corporate compliance and filings
                          • 2. Company formation and structure

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

                            Question 1

                            Which ONE of the following is needed to solve ethical problems?

                            A. Motivation to do what is personally satisfying
                            B. Motivation to do what is right
                            C. Motivation to help others
                            D. Motivation to come to a decision as quickly as possible


                            Question 2

                            Which of the following have made an error of principle? Select ALL that apply.

                            A. Svetlana - Recorded a payment of £530 in the company's expenses account rather than its sales account.
                            B. Janet - Recorded the payment made by one customer in another customer's account.
                            C. Jean - Recorded a customer payment as £120 when they actually paid £150.
                            D. Jim - Recorded a payment of £1,000 in both the company's expenses account and the sales account.
                            E. David - Forgot to record a payment of £50 in the company's sales account.


                            Question 3

                            Which ONE of the following statements is correct in relation to the UK Corporate Governance Code?

                            A. If any company fails to comply with the Code, the directors may be sued for breach of duty by the company on behalf of the shareholders
                            B. If a public company fails to comply with the Code, it may be sued for breach of statutory duty by those who have suffered loss as a result
                            C. If a listed public company fails to produce a report explaining why it has not implemented the Code's recommendations, it has acted in breach of the Code
                            D. If the Code is ignored by any company, no action may be taken as it has no legal status


                            Question 4

                            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?

                            A. The use of chemicals in manufacturing
                            B. Whether the recommended retail price of a particular product provides sufficient margin after the unit cost of production is taken into account
                            C. The environmental impact of transporting toys from the country of manufacture to the country of sale
                            D. The welfare of workers who assemble the company's products


                            Question 5

                            Which of the following statements is correct in relation to the civil law?

                            A. All civil cases commence in the County Court.
                            B. A breach of the civil law does not enable an injured party to claim compensation.
                            C. A person may be prosecuted for a breach of the civil law.
                            D. A tort is a civil wrong.


                            Solutions:

                            Question 1
                            Answer: B
                            Question 2
                            Answer: A,D
                            Question 3
                            Answer: C
                            Question 4
                            Answer: B
                            Question 5
                            Answer: D

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