CIMA : BA4 Questions & Answers

Updated: Aug 29, 2026

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CIMA BA4 Exam Syllabus Topics:

SectionWeightObjectives
General Principles of Legal System, Contract and Employment Law15%- Business law fundamentals
  • 1. Contract formation and enforcement
    • 2. Legal systems and sources of law
      • 3. Employment law basics
        Company Administration10%- Corporate legal administration
        • 1. Corporate compliance and filings
          • 2. Company formation and structure
            Business Ethics and Ethical Conflict30%- Ethical principles and professional behaviour
            • 1. Nature of ethics and values in accounting
              • 2. Professional independence, objectivity, and integrity
                • 3. Ethical dilemmas and conflict resolution
                  Corporate Governance, Controls and Corporate Social Responsibility45%- Internal controls and audit
                  • 1. Internal audit and external audit roles
                    • 2. Risk management and control systems
                      - Corporate social responsibility
                      • 1. CSR principles and sustainability reporting
                        - Corporate governance framework
                        • 1. OECD principles and governance codes
                          • 2. Role of boards and directors

                            CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

                            Question 1

                            X owns 51% of the shares in X Ltd. Y and Z are the only directors of X Ltd. Which ONE of the following is CORRECT?

                            A. X can use his votes to amend the articles and impose new obligations on Y and Z
                            B. X can dismiss Y and Z for any reason by using his majority vote
                            C. X can give directions to Y and Z by passing ordinary resolutions ordering them to comply with his wishes
                            D. X can force Y and Z to declare a dividend


                            Question 2

                            Which of the following is incorrect?

                            A. In order to register a company, promoters must include a Memorandum of Association in the documents submitted to the Register of Companies.
                            B. A company cannot be registered with the same name as a company already on the register.
                            C. For a company with a share capital, the application for registration must contain a statement of capital and initial shareholdings.
                            D. The directors of a newly registered company cannot also act as directors of another company.


                            Question 3

                            Zed Bank plc has agreed to allow Exe Ltd an overdraft of £50,000 subject to a fixed and floating charge over almost all of the company's assets. In addition, the directors of Exe Ltd have been required to personally guarantee the overdraft.
                            Which of the following is correct?
                            (i) The directors could face bankruptcy if they are called upon to honour the guarantee.
                            (ii) In this case the directors do not enjoy limited liability as they are liable on the guarantee if the company cannot pay.
                            (iii) The directors could only be required to honor the guarantee if the company's assets proved insufficient to meet the overdraft.

                            A. (i) and (ii) only
                            B. (i), (ii) and (iii)
                            C. (iii) only
                            D. (i) only


                            Question 4

                            Which of the following identifies criminal as opposed to civil proceedings?

                            A. The case was heard by the Supreme Court.
                            B. The case was proved beyond reasonable doubt.
                            C. The case resulted in an award of damages.
                            D. The case was brought by a claimant.


                            Question 5

                            Maintaining professional knowledge and skill at the level required to ensure that a client or employer receives competent professional service demonstrates the CIMA Code of Ethics fundamental principle of:

                            A. Objectivity
                            B. Integrity
                            C. Professional behavior
                            D. Professional competence and due care


                            Solutions:

                            Question 1
                            Answer: B
                            Question 2
                            Answer: D
                            Question 3
                            Answer: B
                            Question 4
                            Answer: B
                            Question 5
                            Answer: D

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