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CIMA BA4 : Fundamentals of Ethics - Corporate Governance and Business Law

BA4

Exam Code: BA4

Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law

Updated: Aug 04, 2026

Q & A: 660 Questions and Answers

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CIMA BA4 Exam Syllabus Topics:

SectionWeightObjectives
Topic 1: 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
        Topic 2: Corporate Governance, Controls and Corporate Social Responsibility45%- Corporate social responsibility
        • 1. CSR principles and sustainability reporting
          - Corporate governance framework
          • 1. Role of boards and directors
            • 2. OECD principles and governance codes
              - Internal controls and audit
              • 1. Risk management and control systems
                • 2. Internal audit and external audit roles
                  Topic 3: General Principles of Legal System, Contract and Employment Law15%- Business law fundamentals
                  • 1. Employment law basics
                    • 2. Legal systems and sources of law
                      • 3. Contract formation and enforcement
                        Topic 4: Company Administration10%- Corporate legal administration
                        • 1. Corporate compliance and filings
                          • 2. Company formation and structure

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

                            1. Which of the following governs all public sector employees?

                            A) The Seven Principles of Public Enterprise
                            B) The Seven Principles of Public Private Partnership
                            C) The Seven Principles of Public Sector Participation
                            D) The Seven Principles of Public Life


                            2. Which of the following is incorrect in relation to the remedy of damages?

                            A) Damages will not normally be awarded for the distress caused to the innocent party by the breach.
                            B) A contract breaker is liable for losses which arise naturally from the breach.
                            C) Damages are designed to compensate the innocent party and to punish the contract breaker.
                            D) A contract breaker is liable for special losses which are within his contemplation.


                            3. Your boss knows that you will always strive to deliver a project on time and on budget. Which TWO of the personal qualities identified by the CIMA Code of Ethics does this demonstrate?

                            A) Timeliness
                            B) Respect
                            C) Reliability
                            D) Courtesy


                            4. Which of the following is correct in relation to a company's ability to contract where the company was registered after the Companies Act 2006 was fully implemented?

                            A) The company's ability to contract is specified in its objects clause in its memorandum of association.
                            B) The company's ability to contract is specified in its objects clause in its articles of association.
                            C) The company cannot restrict its ability to contract in either its memorandum or articles of association.
                            D) The company has unrestricted objects


                            5. Which ONE of the following statements is correct?

                            A) Adherence to social responsibility policies is always mandatory
                            B) Adherence to legislation is always mandatory
                            C) Adherence to codes of ethics is always mandatory
                            D) Adherence to charitable donation policies is always mandatory


                            Solutions:

                            Question # 1
                            Answer: D
                            Question # 2
                            Answer: C
                            Question # 3
                            Answer: A,C
                            Question # 4
                            Answer: D
                            Question # 5
                            Answer: B

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