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CIMA BA4 Exam Syllabus Topics:

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

1. Jimmy wants to sell his scooter, so he puts an advert on the internet with a price of £50.
He quickly gets an offer for the full amount, but then decides that he doesn't want to sell his scooter after all!
The buyer complains and threatens to report jimmy to the police.
This doesn't worry Jimmy as he knows he is not legally obliged to sell his scooter. Why is this?

A) Because a seller can choose to withdraw their item whenever they want.
B) Because jimmy only stated that he intended to sell the scooter.
C) Actually, jimmy does have to sell the scooter.
D) Because the advertisement was an open offer.

2. Mr A sent an email to Mr B offering to sell him some goods for $1.000 Mr B replied by email stating I'll buy the goods Payment will be made over the next 4 weeks." Mr B has now discovered that Mr A has sold the goods to Mr C.
Which of the following is correct?

A) Mr A was free to sell the goods to Mr C as communications by email are presumed to show that the parties did not intend to create legal relations
B) Mr A has acted in breach of contract as Mr B has accepted his offer
C) Mr A was free to sell the goods to Mr C as Mr B's email amounted to a counter offer which rejected Mr A's offer
D) Mr C has intervened in the contract of Mr A and Mr B and can be forced to return the goods for the benefit of Mr B

3. Which of the following CANNOT be carried out by a simple contract?

A) A contract of employment.
B) A contract for the sale of land.
C) A contract for the provision of services.
D) A contract for the sale of a motor car.

4. Which of the following is presumed to be intended to create legal relations?

A) A social arrangement.
B) A commercial transaction.
C) A promise by a father to make a gift to his son.
D) A domestic arrangement.

5. Being accountable for one's actions and decisions reflects the personal quality identified by the CIMA Code of Ethics as:

A) Respect
B) Reserve
C) Reliability
D) Responsibility

Solutions: