CIMA : BA4 Questions & Answers

Last Updated: Nov 09, 2026

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CIMA BA4 Exam Overview:

Certification Vendor:CIMA (Chartered Institute of Management Accountants)
Exam Name:Fundamentals of Ethics, Corporate Governance and Business Law (BA4)
Exam Number:BA4
Passing Score:50%
Certificate Validity Period:Indefinite (CIMA Certificate does not expire)
Available Languages:English
Related Certifications:CIMA Certificate in Business Accounting (Cert BA)
CIMA Operational Level (progression pathway)
Exam Duration:120 minutes
Exam Format:Multiple Choice Questions, Computer-based Objective Test
Exam Price:Approx. £70–£120 (varies by country/test center)
Real Exam Qty:85 objective test questions
Recommended Training:Kaplan CIMA BA4 Study Materials
CIMA Study Hub (Official Learning)
Exam Registration:Pearson VUE Exam Booking
CIMA Official Registration Portal
Sample Questions: DOWNLOAD DEMO
Exam Way:Computer-based exam delivered via Pearson VUE test centers or online proctoring (availability varies by region)
Pre Condition:No formal prerequisites. Part of CIMA Certificate in Business Accounting (entry-level qualification).
Official Syllabus URL:https://www.aicpa-cima.com/cima-certificate-in-business-accounting

CIMA BA4 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: General Principles of Legal System, Contract and Employment Law15%- Business law fundamentals
  • 1. Contract formation and enforcement
    • 2. Employment law basics
      • 3. Legal systems and sources of law
        Topic 2: Company Administration10%- Corporate legal administration
        • 1. Company formation and structure
          • 2. Corporate compliance and filings
            Topic 3: Corporate Governance, Controls and Corporate Social Responsibility45%- Corporate governance framework
            • 1. OECD principles and governance codes
              • 2. Role of boards and directors
                - Internal controls and audit
                • 1. Risk management and control systems
                  • 2. Internal audit and external audit roles
                    - Corporate social responsibility
                    • 1. CSR principles and sustainability reporting
                      Topic 4: Business Ethics and Ethical Conflict30%- Ethical principles and professional behaviour
                      • 1. Ethical dilemmas and conflict resolution
                        • 2. Nature of ethics and values in accounting
                          • 3. Professional independence, objectivity, and integrity

                            Frequently Asked Questions About CIMA Fundamentals of Ethics - Corporate Governance and Business Law

                            The BA4 exam is a core requirement for the CIMA Certificate in Business Accounting certification at the Entry / Certificate Level level. Earning this validates your skills for credentials like CIMA Certificate in Business Accounting (Cert BA), CIMA Operational Level (progression pathway).

                            Candidates will face 85 objective test questions questions and have 120 minutes to complete the exam. This means you need strict time management. We strongly recommend taking timed practice tests to ensure you can maintain a steady pace without rushing when under actual exam time pressure.

                            The official examination fee is Approx. £70–£120 (varies by country/test center), and you must achieve a score of 50% to pass. Since retaking the test requires paying the full fee again, utilizing accurate practice materials for thorough self-assessment beforehand is crucial to protect your investment.

                            Candidate requirements include: No formal prerequisites. Part of CIMA Certificate in Business Accounting (entry-level qualification).. Please verify all eligibility details on the official certification page before scheduling your appointment.

                            Registration is handled through official testing partners. The exam is delivered via Computer-based exam delivered via Pearson VUE test centers or online proctoring (availability varies by region). You can sign up here:

                            The vendor suggests following official learning paths to build a foundational understanding:

                            Once you complete your training, use the 660 practice questions from ActualTorrent to refine your exam readiness.

                            Absolutely. A free PDF demo is available for you to evaluate the quality of our questions. Once purchased, you receive 365 days of free updates. If your access expires, you can renew it at a 50% discount to keep your materials current.

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                            The syllabus is divided into 4 main domains. Key areas include "Corporate Governance, Controls and Corporate Social Responsibility" (45%), "Company Administration" (10%), "Business Ethics and Ethical Conflict" (30%). For a comprehensive breakdown of all measured skills, please review the complete exam outline table provided above.

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

                            Question #1

                            Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

                            • A. The identification of an independent director as primary shareholder contact
                            • B. The separation of the roles of Chairman and Chief Executive
                            • C. The appointment of independent non-executive directors to the Board
                            • D. The establishment of a risk committee
                            Reveal Solution  Discussion  0

                            Correct Answer: D  🗳️

                            Question #2

                            P contracted to buy a computer from CD (Retailers) Ltd. 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".
                            Which of the following is correct?

                            • A. If this is a consumer sale the clause is void unless it can be shown to be reasonable.
                            • B. Conditions implied by the Sale of Goods Act 1979 cannot be excluded in any kind of sale.
                            • C. If this is a consumer sale the clause is void.
                            • D. If this is a non-consumer sale the clause is valid.
                            Reveal Solution  Discussion  0

                            Correct Answer: C  🗳️

                            Question #3

                            In the UK, which organization that governs the accounting profession has taken the lead with respect to ethical considerations?

                            • A. The Financial Reporting Council
                            • B. The Accounting and Auditing Policy Committee
                            • C. The Financial Standards Accounting Board
                            • D. The International Accounting Standards Board
                            Reveal Solution  Discussion  0

                            Correct Answer: A  🗳️

                            Question #4

                            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
                            Reveal Solution  Discussion  0

                            Correct Answer: B  🗳️

                            Question #5

                            Which ONE of the following provides an example of circumstances that may create self-review threats for a professional accountant in public practice?

                            • A. The discovery of a significant error during a re-evaluation of the work of the professional accountant in public practice
                            • B. All of the above
                            • C. A member of the assurance team being, or having recently been, a director or officer of that client
                            • D. Reporting on the operation of financial systems after being involved in their design or implementation
                            Reveal Solution  Discussion  0

                            Correct Answer: B  🗳️

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