CIMA BA4 Value Pack (Frequently Bought Together)

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CIMA BA4 Exam Syllabus Topics:

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

1. A business that behaves ethically may experience which of the following benefits; Select ALL that apply.

A) Higher productivity levels
B) Competitive advantage
C) Improved staff morale
D) Increased market penetration
E) Little or no legal action
F) Improved reputation
G) Increased profits

2. Which of the following terms can be defined as follows?
"...the system by which companies are directed and controlled"

A) Corporate governance
B) Social responsibility
C) Professional behavior
D) Ethics

3. Steve manages the accounts for a large software company. He's good at his job, though it has recently emerged that he is going through quite a messy divorce.
Why should the company's senior management be most concerned?

A) Because there is a risk Steve could get aggressive with other employees within the company.
B) Because Steve might not work as hard.
C) Because Steve might start to be untruthful and not disclose information that he should.
D) Because Steve could be motivated to steal from the company.

4. An independent audit is important to readers of financial statements because it

A) measures and communicates the data included in financial statements
B) objectively examines and reports on management's financial statements
C) confirms the accuracy of management's financial representations.
D) assures the readers of financial statements that any fraudulent activity has been corrected

5. Which THREE of the following are disadvantages of rules-based approaches to ethical standards?
Rules-based approaches:

A) are inflexible and expensive
B) require objective enforcement by an independent party.
C) motivate compliance through value and judgment
D) are inconsistently applied due to the need for judgment.
E) are subject to precise definitions of wording and hence become contentious
F) have subjective standards which may cause confusion.

Solutions: