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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:
Nov 30, 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

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)

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Question 2

Articles of association regulate the relationship between:

Options:

A.

the company and its directors

B.

the company and its customers

C.

the company and its members

D.

the company and its creditors

Question 3

Which of the following statements is incorrect?

Options:

A.

A person who signs a contract is deemed to have read it.

B.

A person is assumed to know of a term of which he has been given reasonable notice at or before the time of the contract.

C.

A person seeking to rely upon an onerous clause must show that he has taken sufficient steps to bring the clause to the other party's attention.

D.

A person cannot be bound by an onerous clause.