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CIMA BA4 Exam (page: 11)
CIMA BA4 - Fundamentals of Ethics, Corporate Governance and Business Law
Updated on: 09-Feb-2026

Viewing Page 11 of 102
BA4 PDF 661 Questions

Which of the following statements is incorrect?

  1. A person who signs a contract is deemed to have read it.
  2. A person is assumed to know of a term of which he has been given reasonable notice at or before the time of the contract.
  3. A person seeking to rely upon an onerous clause must show that he has taken sufficient steps to bring the clause to the other party's attention.
  4. A person cannot be bound by an onerous clause.

Answer(s): D



A is about to register a new company limited by shares, "A Ltd", in order to carry on a retail business. A has ordered a quantity of goods from a supplier "for and on behalf of A Ltd".
Which of the following is correct?

  1. A Ltd is liable to pay for the order as soon as it is registered.
  2. A is personally liable for the order.
  3. The contract is void.
  4. A Ltd can ratify the contract following registration.

Answer(s): B



Which of the following statements is incorrect in relation to written resolutions?

  1. Written resolutions may only be passed by private companies.
  2. In most cases, a written resolution may be used instead of holding a general meeting.
  3. A written resolution can be used in place of an ordinary or special resolution.
  4. A written resolution is only valid when it has been signed by all those who were entitled to attend and vote at company meetings.

Answer(s): D



Zed plc wishes to issue £500,000 of shares on terms that the holders will receive a dividend before the other shareholders and they will be bought back by the company in 12 months' time. Which of the following best describes these shares?

  1. Ordinary shares
  2. Redeemable ordinary shares
  3. Preference shares
  4. Redeemable preference shares

Answer(s): D



On the basis of the National Minimum Wages Act 1998, what is the age range for the lowest national minimum wage entitlement?

  1. workers aged 16-18
  2. workers aged 16-17
  3. workers aged 15-17
  4. workers aged 16-19

Answer(s): B



Viewing Page 11 of 102



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