CIMA BA4

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

1. The body responsible for reviewing the operations of the accounting profession worldwide is:

A) The Professional Oversight Board for Accountancy
B) The Financial Reporting Council
C) The International Federation of Accountants
D) The Financial Review Board

2. Which of the following is incorrect?

A) A floating charge must be registered at Companies House within 21 days of its creation, otherwise the charge is void against the other creditors.
B) A floating charge must be registered at the company's registered office, but a failure to do so does not affect the validity of the charge.
C) A floating charge is a charge over a class of assets which change from time to time.
D) A floating charge is a charge over a class of company assets which the company is unable to deal with freely in the ordinary course of business.

3. Which of the following do CIMA members NOT have a specific duty to do?

A) Uphold the good standing and reputation of their employer
B) Refrain from any conduct which might discredit the profession
C) Uphold the good standing and reputation of the profession
D) Observe the highest standards of conduct and integrity

4. Why are the principles of integrity, objectivity, professional competence and due care, confidentiality and professional behavior "fundamental"?

A) Because they are the foundations of management accounting
B) Because they are the foundations of human rights
C) Because they are the foundations of corporate responsibility
D) Because they are the foundations of reasoning and professional practice

5. Which THREE of the following are characteristics of Limited Liability Partnerships ("LLPs")?

A) LLPs are usually created by formal registration under statute
B) An LLPs partners are jointly and severally liable for the debts of the LLP
C) LLPs can hold property in their own name
D) LLPs have no perpetual succession
E) LLPs can enter into contracts in their own name

Solutions: