CIMA CIMAPRA17-BA4-1 Exam Practice Test Instant Access

Question 1

X is in the process of setting up a private company limited by shares X is considering including certain provisions in the articles of association. Which of the following provisions would be enforceable by and against the company?

1 Dividend rights of the members

2. Terms relating to bonuses of directors

3. Payment terms of suppliers.

A1 only

B1 and 2 only

C2 and 3 only

D1,2 and 3

Answer : A

Question 2

Which THREE of the following statements are correct in relation to the essential elements of a contract?

AA conditional offer cannot be accepted until the condition has been satisfied

BA revocation of an offer is only valid when it is received by the offeree, unless it is sent by post in which case it is valid as soon as it is posted

CEven if the parties are fully in agreement, the agreement will be unenforceable unless at least one of the parties has provided consideration

DA request for further information in relation to an offer has the effect of cancelling the offer

EIf an offer is rejected it can only be revived by the person who made the offer

FOnce an offer has been made it does not exist forever but will lapse after a reasonable time

Answer : A, D, F

Question 3

Which THREE of the following are characteristics of Limited Liability Partnerships ("LLPs")?

ALLPs can enter into contracts in their own name

BLLPs have no perpetual succession

CAn LLPs partners are jointly and severally liable for the debts of the LLP

DLLPs can hold property in their own name

ELLPs are usually created by formal registration under statute

Answer : A, D, E

Question 4

An external auditor has concluded that the financial statements of a company fairly reflect the financial position of a company. The report which the auditor issues will include which of the following?

1. Details of the company's directors

2. Details of managements' responsibilities.

3. Details of the company's performance.

A1 and 3 only

B1,2 and 3

C2 only

D1 and 2 only

Answer : C

Question 5

Which of the following are correct in relation to supervisory and management boards of directors?

1 A supervisory board reports to the mangament board in respect of business policy and future strategy

2 A management board is usually made up entirely of executive directors

3 A supervisory board includes employee representatives.

A2 only

B1 and 2 only

C2 and 3 only

D1 only

Answer : C

Question 6

Which of the following options are correct in relation to a contract of employment?

1. The contract must be in writing

2. An employee's duty to act with reasonable care and skill is implied into the contract

3. An employer's duty to provide a inference is implied into the contract

A1 and 2 only

B2 and 3 only

C1 only

D2 only

Answer : D

Question 7

Where a countries' rules protect whistleblowers. they usually only do so where there has been a "qualifying disclosure" Which of the following statements best describes the minimum level of information which a whistleblower needs to have to make a "qualifying disclosure"?

ACertainty that at least one company rule is being breached or has been breached in the past

BKnowledge that company rules are about to be breached

CReasonable grounds to believe that sufficiently serious malpractice is taking place

DA suspicion that serious malpractice has taken place

Answer : A

CIMAPRA17-BA4-1 BA4 - Fundamentals of Ethics, Corporate Governance and Business Law Exam Practice Test