CIMA BA4 - Fundamentals of Ethics, Corporate Governance and Business Law BA4 Dumps in PDF

Free CIMA BA4 Real Questions (page: 18)

The holders of a certain minimum percentage of a company's issued share capital are entitled to require the company to circulate a written statement to those entitled to receive notice of the next annual general meeting. What is that minimum percentage?

  1. 5%.
  2. 10%.
  3. 15%.
  4. 20%.

Answer(s): A



Which of the following is correct in relation to corporate governance in the UK?

(i) If a listed public company in the UK fails to comply with the UK Corporate Governance Code, the company and the board may be prosecuted by the Financial Services Authority.

(ii) The duties of directors are codified in the Companies Act 2006 and breaches are enforceable by the company.

(iii) The ability of the majority of shareholders to dismiss a director for any reason whatsoever is the main sanction provided by the UK Corporate Governance Code.

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

Answer(s): D



After the Companies Act 2006, which of the following is correct in relation to a reduction of capital by a public company?

(i) If the reduction results in the company no longer having the authorized minimum capital for a public company, it may be necessary to re-register as a private company.

(ii) The Articles of Association may restrict the company's ability to reduce capital.

(iii) The reduction must be approved by the court.

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

Answer(s): D



Working late one evening, you see a colleague copying information on to series of CD Roms. He tells you that software is too expensive for him to afford for his home computer

but that he needs the software for his own personal use and in case he might take work home at some point. Is this an ethical issue and why?

  1. Yes - unauthorized reproduction would be regarded by the manufacturer as software piracy
  2. Maybe - depending on whether he uses the software for personal or business use
  3. Maybe - depending on whether his income is really insufficient to cover the cost of software purchase
  4. No - one additional copy of the software makes no difference to the manufacturer, so this is not an ethical issue

Answer(s): A



In relation to corporate governance, which of the following statements best describes the situation in the UK?

  1. All corporate governance is enforceable in law
  2. Some corporate governance is enforceable in law
  3. No corporate governance is enforceable in law
  4. There is little or no corporate governance

Answer(s): B



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