Passing exam with BA4 latest training materials

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Updated: Jun 09, 2026

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

1. Which of the following is incorrect?

A) A special resolution is needed to dismiss a director if the Articles of Association provide that he is to be a director for life.
B) A director who is under threat of removal has the right to speak at the meeting, whether or not he is a member.
C) The company must be given 28 days' notice of a proposed resolution to dismiss a director.
D) A director may be removed from office for any reason by an ordinary resolution.


2. Which of the following has overall responsibility for enforcing the Health and Safety at Work Act 1974 and its related legislation?
i. The Health and Safety Commission
ii. The Health and Safety Executive
iii. The Health and Safety Inspectorate

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


3. Which of the following is correct in relation to corporate governance in the UK?
(i) If a listed public company in the UK fails to comply with the UK Corporate Governance Code, the company and the board may be prosecuted by the Financial Services Authority.
(ii) The duties of directors are codified in the Companies Act 2006 and breaches are enforceable by the company.
(iii) The ability of the majority of shareholders to dismiss a director for any reason whatsoever is the main sanction provided by the UK Corporate Governance Code.

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


4. Which of the following is correct in relation to loans to directors of a public company?

A) A public company cannot make loans to its directors
B) A public company which provides a loan to one of its directors commits a criminal offence unless the loan is approved by the shareholders
C) If a public company pays the debts of one of its directors on terms that the payment must be repaid by the director, the shareholders must approve the payment
D) A public company is not subject to any restrictions when making a loan to one of its directors


5. C sued D in the tort of negligence in order to recover compensation for injuries suffered as a result of D breaking his duty of care to C.
For what injuries can C claim compensation?

A) All reasonably foreseeable injuries caused by D.
B) All physical but not psychiatric injuries caused by D.
C) All injuries caused by D.
D) All injuries which were a direct consequence of D's actions.


Solutions:

Question # 1
Answer: A
Question # 2
Answer: A
Question # 3
Answer: A
Question # 4
Answer: C
Question # 5
Answer: A

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