- Exam Code: BA4
- Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
- Updated: May 30, 2026
- Q & A: 660 Questions and Answers
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1. Company B wants to implement ethical control over its staff. It wants to do this by implementing a strong organisational culture.
Which of the following are ways in which the organisation could exercise control in regards to its organisational culture?
Select ALL that apply.
A) Ensure that the company's chairman and CEO lead by example.
B) Ensure that the company's organisational systems encourage adherence to its ethics.
C) Introduce a statement of values which outlines what the organisation stands for.
D) Ensure that disciplinary action is taken when the company's ethical code is broken.
E) Ensure the company's ethical expectations are thoroughly communicated.
F) Only employ directors who have proven strong moral values.
2. Which of the following is incorrect in relation to the remedy of damages?
A) A victim of a breach of contract may be unable to recover damages if he has failed to mitigate his loss.
B) Mitigation and remoteness of damage are irrelevant where a creditor is suing to recover an agreed debt.
C) A penalty clause in a contract cannot be enforced.
D) Damages cannot be claimed for a breach of a contract to provide personal services.
3. Which of the following is presumed not to be intended to create legal relations?
A) A contract between father and son.
B) An agreement by Exe Ltd to make a gift to Wye Ltd.
C) A commercial transaction.
D) A social arrangement.
4. According to the CIMA Code of Ethics, which of the following categories describe common threats to compliance with the fundamental principles? Please select all that apply.
A) Intimidation threats
B) Self-review threats
C) Self-interest threats
D) Familiarity threats
5. Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?
A) The establishment of an audit committee
B) The appointment of competent accountants in the finance function
C) The separation of the roles of Chairman and Managing Director
D) The reporting to shareholders of risks and internal controls
Solutions:
| Question # 1 Answer: A,B,C,E | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: A,B,C,D | Question # 5 Answer: B |
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