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

  • Exam Code: BA4
  • Exam Name: Fundamentals of Ethics - Corporate Governance and Business Law
  • Updated: Aug 03, 2026
  • Q & A: 660 Questions and Answers

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CIMA BA4 Exam Syllabus Topics:
SectionWeightObjectives
Topic 1: Company Administration10%- Corporate legal administration
  • 1. Corporate compliance and filings
    • 2. Company formation and structure
      Topic 2: Business Ethics and Ethical Conflict30%- Ethical principles and professional behaviour
      • 1. Ethical dilemmas and conflict resolution
        • 2. Professional independence, objectivity, and integrity
          • 3. Nature of ethics and values in accounting
            Topic 3: General Principles of Legal System, Contract and Employment Law15%- Business law fundamentals
            • 1. Legal systems and sources of law
              • 2. Employment law basics
                • 3. Contract formation and enforcement
                  Topic 4: Corporate Governance, Controls and Corporate Social Responsibility45%- Corporate social responsibility
                  • 1. CSR principles and sustainability reporting
                    - Corporate governance framework
                    • 1. OECD principles and governance codes
                      • 2. Role of boards and directors
                        - Internal controls and audit
                        • 1. Internal audit and external audit roles
                          • 2. Risk management and control systems
                            CIMA Fundamentals of Ethics - Corporate Governance and Business Law Sample Questions:

                            1. Which of the following statements is correct?
                            (i) In the event of a conflict between English Law and European Law, English Law prevails.
                            (ii) The Supreme Court is the highest court in the United Kingdom.
                            (iii) The High Court is bound by a ratio decidendi of the Supreme Court.

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


                            2. Which of the following type of committee is NOT required by the UK Combined Code?

                            A) Nominations committee
                            B) Remuneration committee
                            C) Investment committee
                            D) Audit committee


                            3. S Ltd has an issued share capital of 1000 ordinary shares of £1 each. Some of the shareholders would like to change the name of the company. What is the minimum number of votes which must be cast in favor of the resolution to make it effective?

                            A) 501
                            B) 500
                            C) 750
                            D) 1,000


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

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


                            5. Which of the following is presumed not to be intended to create legal relations?

                            A) An agreement by Exe Ltd to make a gift to Wye Ltd.
                            B) A social arrangement.
                            C) A contract between father and son.
                            D) A commercial transaction.


                            Solutions:

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

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