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  1. Home
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  3. BA4

CIMA BA4 Exam (page: 13)
CIMA BA4 - Fundamentals of Ethics, Corporate Governance and Business Law
Updated on: 09-Feb-2026

Viewing Page 13 of 102
BA4 PDF 661 Questions

Which of the following is incorrect?

  1. A private company must have at least two directors.
  2. The board usually has the power to appoint a managing director.
  3. A board usually reaches its decisions by majority vote.
  4. The first directors of the company are those persons who are named as directors on Form IN01.

Answer(s): A



Which of the following is correct?

(i) The Court of Appeal is bound by obiter dicta of the Supreme Court.

(ii) The High Court is bound by a Supreme Court ratio decidendi)

(iii) A ratio decidendi of the Court of Appeal is binding on the High Court.

  1. (i) only
  2. (i) and (ii) only
  3. (ii) and (iii) only
  4. (i), (ii) and (iii).

Answer(s): C



ABC Accountants has taken out an advert in its local paper to promote its services. Mr B, an account manager, is uncomfortable, as the advert says that ABC is expert in charitable tax issues, and he knows that none of the partners have that expertise. However, Mr B does not want to be thought of as a 'trouble maker' by bringing the matter up with his manager. Which TWO things should Mr B do?

  1. Seek guidance from CIMA's Code of Ethics
  2. Seek guidance from his line-manager
  3. Do nothing
  4. Speak to the local paper

Answer(s): A,B



A professional accountant's social responsibility relates to which TWO of the following?

  1. Acting in the interests of one's employer
  2. Seeking to maximize a company's shareholder return on investment
  3. Playing a role within global, local, professional or other communities
  4. Fulfilling public duty

Answer(s): C,D



Which of the following statements is correct?

  1. An employer is vicariously liable for all acts of his employees committed in the course of their employment.
  2. An employer is vicariously liable for torts committed by his employees in the course of their employment.
  3. An employer is vicariously liable for all torts committed by employees and independent contractors.
  4. An employer is vicariously liable for all the acts committed by employees and independent contractors.

Answer(s): B



Viewing Page 13 of 102



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