Try CIMA : BA4 practice torrent pass for sure
Updated: Jun 03, 2026
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CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:
1. B agreed in his contract that he would not work for a competitor of Gee Ltd for a period of 12 months after leaving the company's employment. On leaving Gee Ltd, B worked for Zed Ltd, a competitor of Gee Ltd. If the restriction in B's contract with Gee Ltd should be found to be reasonable, which of the following remedies is Gee Ltd entitled to?
(i) A decree of specific performance forcing B to comply with his contract with Gee Ltd.
(ii) Damages in respect of any loss caused by B's breach of contract.
(iii) An injunction to stop B working for Zed Ltd.
A) (i), (ii) and (iii)
B) (i) only
C) (ii) and (iii) only
D) (i) and (ii) only
2. Which one of the following is NOT one of the fundamental principles of CIMA's Code of Ethics?
A) Confidence
B) Professional behavior
C) Integrity
D) Objectivity
3. In relation to corporate governance, which of the following statements best describes the situation in the UK?
A) All corporate governance is enforceable in law
B) There is little or no corporate governance
C) No corporate governance is enforceable in law
D) Some corporate governance is enforceable in law
4. Immediately before being placed in creditors voluntary liquidation, Tom, the sole director of Bee Ltd, arranged for the company to make an early repayment of an unsecured loan made to Bee Ltd by his wife Anne. Which of the following is correct?
A) The company has given a "preference" to Anne, and the court may make any order it thinks fit to restore the position to what it was before Anne was repaid.
B) The company has acted in breach of fiduciary duty and can be made liable up to the amount of the loan.
C) The transaction amounts to "wrongful trading" and Tom may be held personally liable up to the amount of the loan.
D) The company has entered into a "transaction at an undervalue" with Anne, and the court may fine or imprison Tom.
5. You have been asked to be involved in negotiations for the potential acquisition of another company. It so happens that your spouse is on the board of directors of that company. This affects the CIMA Code of Ethics fundamental principle of:
A) Transparency
B) Professional competence and due care
C) Objectivity
D) Reliability
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: A | Question # 5 Answer: C |
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