CIMA BA4 - Fundamentals of Ethics - Corporate Governance and Business Law
- Exam Code: BA4
- Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
- Updated: May 29, 2026
- Q & A: 660 Questions and Answers
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1. Which ONE of the following is needed to solve ethical problems?
A) Motivation to help others
B) Motivation to come to a decision as quickly as possible
C) Motivation to do what is personally satisfying
D) Motivation to do what is right
2. Which of the following statements are correct in relation to the purpose of the OECD principles of corporate governance?
1. The principles are regarded by OECD members as representing a common basis essential for the development of good corporate governance practice
2. The principles are intended to be a substitute for individual government's proposals for governance best practice.
3. The principles are intended for the use of OECD members only.
A) 1 and 2 only
B) 1only
C) 2 and 3 only
D) 2 only
3. Which of the following terms can be defined as follows?
"...the way an organization manages its relationships"
A) Social responsibility
B) Professional behavior
C) Corporate governance
D) Ethics
4. ABC plc has acted in breach of its health and safety obligations and this has led to a number of employees and members of the public being injured.
Which of the following is correct?
The breach could give rise to:
i. Civil claims on the part of the employees and members of the public
ii. Enforcement action by the Health and Safety Executive
iii. Criminal sanctions against ABC plc
A) (i) only
B) (i), (ii) and (iii)
C) (i) and (ii) only
D) (ii) and (iii) only
5. Y is completing an internal audit work on the system to approve suppliers to JKL Company. Which of the following would NOT promote a sustainable approach to the company's relationship with it\suppliers?
A) Each supplier must comply with JKL's policy on limiting non-recyclable packaging to 10% of total packaging per contract
B) Preference will be given to local suppliers over those located at a greater distance from the company
C) Each year approval as a supplier to the company will only be granted if the prices paid to the supplier are reduced by 1%
D) Haulage firms must demonstrate that they have a policy to reduce emissions from their fleet
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: B | Question # 5 Answer: C |
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