Question 1

Which of the following describes the aim of corporate governance initiatives?

ATo remove shareholder responsibility for the conduct of the company.

BTo reduce the burden of regulation on all companies to increase shareholder wealth

CTo enable shareholders to reduce their involvement in the governance of the company

DTo ensure that shareholders may have confidence that the company is well run

Answer : D

Question 2

Which of the following would comply with best practice in accordance with the UK Corporate Governance Code in relation to Board conduct?

AThe Board of SSS a public company limited by shares, consists of four executive directors and five non-executive directors. The Board is headed by Mr I who is both CEO and Chairman The non-executive directors do challenge the strategic direction of the company and their opinions are considered and acted upon

BThe Board of TSD, a public company limited by shares, consists of four executive directors and three non-executive directors. The Chairman, Mr C is the brother of the CEO Miss K The board meets ten times a year The board meetings are dominated by the siblings but the final decision is generally taken by the CEO

CThe Board of END, a public company limited by shares, consists of four executive and five non-executive directors. The Board is headed by its Chairman, Miss A and the CEO is Miss B. The board has developed clear divisions of responsibility and consequently only meets in full once a year to approve the financial statements

DThe Board of DDE, a public company limited by shares, consists of four executive and five non-executive directors The Board is headed by its Chairman Mr A and the CEO is Mr H. The board meets ten times a year. The non-executive directors do challenge the strategic direction of the company and their opinions are considered and acted upon

Answer : C

Question 3

Which of the following best describes "independence of mind" as referred to in CIMA's Code of Ethics

AIt separates a professional accountant from the rest of society

BIt ensures a professional accountant always tries to avoid any action which discredits the profession.

CIt permits the expression of a conclusion without being affected by influences that compromise professional judgement

DIt ensures a professional accountant is straightforward and honest in all professional and business relationships

Answer : C

Question 4

C is a professional accountant He encounters an ethical dilemma in his role and wishes to seek help in resolving it. Which of the following would NOT be an appropriate source of advice?

AThe CIMA ethics helpline

BLegal advisors.

CThe external auditors.

DThe internal whistle-blowing helpline

Answer : C

Question 5

CIMA's report on 'Practical Proposals to Improve Corporate Governance Disclosure' explores a range of ideas Which of the following statements is correct?

AIn focusing on improving corporate governance disclosure the skills, experiences and personalities of the board should explain how the board ensures robust decision-making

BIn focusing on improving corporate governance disclosure the board activities should be linked into key aspects of the corporate performance and strategic development to enable users to evaluate the effectiveness of the board

CIn focusing on improving corporate governance disclosure the information provided should be standardised to enable shareholders to compare performance with other companies.

DIn focusing on improving corporate governance disclosure the board should evaluate its own effectiveness by focusing on how its actions have improved profit.

Answer : B

Free CIMA BA4 - Fundamentals of Ethics, Corporate Governance and Business Law (CIMAPRA17-BA4-1) Practice Questions

CIMAPRA17-BA4-1 Sample Exam Questions

Question 1

Question 2

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Question 4

Question 5