CIMA BA4 Exam (page: 5)
CIMA BA4 - Fundamentals of Ethics, Corporate Governance and Business Law
Updated on: 24-Mar-2026

Viewing Page 5 of 102

Which of the following is presumed not to be intended to create legal relations?

  1. A commercial transaction.
  2. An agreement by Exe Ltd to make a gift to Wye Ltd.
  3. A social arrangement.
  4. A contract between father and son.

Answer(s): C



T contracted to buy a washing machine from AB (Retailers) Ltd for his personal use at home. The contract contained a term excluding liability for any breach of the condition implied by the Sale of Goods Act 1979 that the goods should be of "satisfactory quality". The contract was on AB (Retailers) Ltd's standard form contract.

Which of the following is correct?

(i) Conditions implied by the Sale of Goods Act 1979 cannot be excluded in any sale.

(ii) This is a consumer sale and the clause excluding liability is void.

(iii) This is a non-consumer sale and the clause is void unless reasonable.

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

Answer(s): B



Which of the following terms can be defined as follows?

"...the way an organization manages its relationships"

  1. Ethics
  2. Social responsibility
  3. Corporate governance
  4. Professional behavior

Answer(s): B



Which of the following need NOT be submitted in order to register a private company limited by shares?

(i) Articles of association

(ii) The name of the company secretary

(iii) A statement of share capital

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

Answer(s): B



Which of the following is an example of a safeguard created by the profession, legislation or regulation as opposed to a safeguard in the work environment?

  1. Leadership of the organization which stresses the importance of compliance with the fundamental principles
  2. Leadership of the organization which establishes the expectation that members of an assurance team will act in the public interest
  3. Professional standards
  4. An organization having documented internal policies and procedures requiring compliance with the fundamental principles

Answer(s): C



Viewing Page 5 of 102



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