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CIMA BA4 Exam With Confidence Using Practice Dumps

Exam Code:
BA4
Exam Name:
Fundamentals of Ethics, Corporate Governance and Business Law
Certification:
Vendor:
Questions:
661
Last Updated:
Dec 25, 2025
Exam Status:
Stable
CIMA BA4

BA4: CIMA Certificate Exam 2025 Study Guide Pdf and Test Engine

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Fundamentals of Ethics, Corporate Governance and Business Law Questions and Answers

Question 1

L is a senior management accountant in a large and respected firm. He has found out that two of the partners of the firm are working unethically for clients who operate on 'the wrong side of the law'.  L would like to draw this matter to the attention of the third partner, but he is concerned that he will either lose his job, or, if the scandal gets out, the firm will lose its reputation and clients as a result.  He decides to do nothing.  Is this an unethical thing to do?

Options:

A.

Yes - it is the ethical duty of an accountant not to cover anything up

B.

Yes - it is unethical to work for a firm like that

C.

No - he is protecting the reputation of the firm

D.

No - he is protecting his own job and the jobs of everyone in the firm

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Question 2

Which of the 'fundamental principles' of CIMA's Code of Ethics is defined as follows?

 

"A professional accountant should comply with the relevant laws and regulations and should avoid any action that discredits the profession"

Options:

A.

Integrity

B.

Objectivity

C.

Professional competence and due care

D.

Professional behavior

Question 3

Zed Bank plc has agreed to allow Exe Ltd an overdraft of £50,000 subject to a fixed and floating charge over almost all of the company's assets. In addition, the directors of Exe Ltd have been required to personally guarantee the overdraft.

 

Which of the following is correct? 

(i) The directors could face bankruptcy if they are called upon to honour the guarantee.

(ii) In this case the directors do not enjoy limited liability as they are liable on the guarantee if the company cannot pay.

(iii) The directors could only be required to honor the guarantee if the company's assets proved insufficient to meet the overdraft.

Options:

A.

(i) only

B.

(i) and (ii) only

C.

(iii) only

D.

(i), (ii) and (iii)