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

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

1. Which of the following is normally implied into a contract of employment?

A) An employee's duty to disclose his own misconduct.
B) A duty to provide work.
C) A duty to provide a reference.
D) A duty to pay wages.

2. Which of the following statements is correct?

A) The Articles of Association of a private company limited by shares may be altered by a written ordinary resolution.
B) The Articles of Association of a private company limited by shares may be altered by ordinary resolution.
C) The Articles of Association of a private company limited by shares may be altered by a special resolution.
D) The Articles of Association of a private company limited by shares may be altered by a board resolution.

3. Which of the following most accurately describes obiter dicta?

A) It is a statement of law made "by the way" which is not binding on future courts which are called upon to decide a similar case.
B) It is the legal principle used by a court to decide a case.
C) It is a statement of law made "by the way" which is binding on future courts which are called upon to decide a similar case.
D) It is the legal principle used by a court to decide a case which is binding upon lower courts called upon to decide a similar case.

4. Which of the following is correct?
i. A company intending to issue new shares for cash must first offer them to the existing shareholders.
ii. A company may dispense with the requirement to offer new shares to existing shareholders by passing a special resolution.
iii. A company issuing shares for a non-cash consideration is not required to offer the shares to the existing members first.

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

5. Which of the following is NOT an essential element of a valid simple contract?

A) Consideration.
B) Written terms.
C) Intention to create legal relations.
D) Agreement.

Solutions: