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CIMA BA4 Exam Syllabus Topics:
| Section | Weight | Objectives |
|---|---|---|
| General Principles of the Legal System, Contract and Employment Law | 15% | - Contract law basics - Employment law essentials - Legal system fundamentals |
| Corporate Governance, Controls and Corporate Social Responsibility | 45% | - Internal controls and audit - Role of board and directors - Corporate social responsibility (CSR) - Principles of corporate governance |
| Business Ethics and Ethical Conflict | 30% | - Ethical dilemmas and resolution - Professional ethics principles - Nature and importance of ethics |
| Company Administration | 10% | - Types of business organisation - Administration and management of companies |
CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
Which of the following statements is correct in relation to equity?
(i) Equity was developed by the Court of Chancery
(ii) Equitable maxims were developed by lawyers
(iii) In the event of a conflict between equity and the common law, equity prevails
- A. (i) and (ii) only
- B. (i) only
- C. (i) and (iii) only
- D. (i), (ii) and (iii)
Correct Answer: C 🗳️
Which of the following statements is INCORRECT?
(i) A counter offer has the legal effect of destroying the original offer and putting another offer in its place.
(ii) For an agreement to be valid at law, the offer and the acceptance must be in the same form.
(iii) Agreements made by email are unenforceable at law.
- A. (i) only
- B. (iii) only
- C. (ii) and (iii) only
- D. (ii) only
Correct Answer: C 🗳️
Which THREE of the following statements are correct in relation to the essential elements of a contract?
- A. If an offer is rejected it can only be revived by the person who made the offer
- B. Once an offer has been made it does not exist forever but will lapse after a reasonable time
- C. A revocation of an offer is only valid when it is received by the offeree, unless it is sent by post in which case it is valid as soon as it is posted
- D. Even if the parties are fully in agreement, the agreement will be unenforceable unless at least one of the parties has provided consideration
- E. A conditional offer cannot be accepted until the condition has been satisfied
- F. A request for further information in relation to an offer has the effect of cancelling the offer
Correct Answer: B,E,F 🗳️
On 1st October X Ltd wrote to Y Ltd offering to sell a machine at a price of £5,000. The letter stated that Y Ltd must give X Ltd "notice in writing" of its acceptance of the offer by 8th October. Y Ltd posted its acceptance on 5th October and this reached X Ltd on 7th October. In the meantime X Ltd sent a letter to Y Ltd on 4th October revoking its offer, and this reached Y Ltd on 8th October.
Which of the following is correct?
- A. There is no contract between X Ltd and Y Ltd because the offer was withdrawn on 8th October when the revocation was received by Y Ltd.
- B. X Ltd and Y Ltd contracted on 5th October.
- C. X Ltd and Y Ltd contracted on 7th October.
- D. There is no contract between X Ltd and Y Ltd because the offer was withdrawn on 4th October when the revocation was sent to Y Ltd.
Correct Answer: C 🗳️
After the enactment of the Companies Act 2006, which of the following is incorrect in relation to a reduction of capital by a private company?
- A. The reduction must be approved by the court
- B. The shareholders must pass a special resolution
- C. The directors must make a statement as to the company's solvency
- D. It is not necessary for the company's Articles of Association to authorize a reduction
Correct Answer: A 🗳️
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