cima cimapra17 ba4 1 practice test

Exam Title: BA4 - Fundamentals of Ethics, Corporate Governance and Business Law

Last update: Nov 27 ,2025
Question 1

You work for a publishing company. Which of the following corporate issues is NOT related to ethics
or social responsibility?

  • A. Whether advertisers are given more favorable editorial coverage than other companies that do not advertise in your company's magazines
  • B. Whether the paper used for the magazines comes from sustainably managed forests or can be recycled
  • C. Whether your company's magazines are more popular than competitor titles
  • D. Whether sales targets are so high that they implicitly encourage salespeople to ignore corporate values and principles
Answer:

C

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Question 2

You work for a clothing retailer. Which of the following corporate issues is NOT related to ethics or
social responsibility?

  • A. Sweatshop labor
  • B. Whether your clothes appeal to your target markets
  • C. Knowingly selling fake versions of this season's high profile designer clothes
  • D. The use of natural or organic material in your clothes
Answer:

B

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Question 3

You work for an international mining company. Which of the following corporate issues is NOT
related to ethics or social responsibility?

  • A. The impact of your operations on the environment
  • B. Your company's response to HIV/Aids among workers in sub-Saharan Africa
  • C. Deciding whether to approve a planned refurbishment of head office
  • D. Whether employees are paid a fair wage
Answer:

C

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Question 4

You work for a pharmaceutical company. Which of the following corporate issues is NOT related to
ethics or social responsibility?

  • A. Flying doctors and their families to the Maldives for an all expenses paid working holiday to explain the benefits of one of your new products
  • B. Whether to reduce the price of your products in poor countries
  • C. Charitable donations
  • D. Redesign of the company logo
Answer:

D

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Question 5

You work for a construction company. Which of the following corporate issues is NOT related to
ethics or social responsibility?

  • A. The reduction of waste on building sites
  • B. The formation of a world class team of employees to win more business
  • C. The use of recycled paper in head office
  • D. Health and safety training for employees and sub-contractors
Answer:

B

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Question 6

According to CIMA, governance and social responsibility policies are:

  • A. Not related to an organization's code of ethics
  • B. In conflict with an organization's values
  • C. Rooted in an organization's values and code of ethics
  • D. Not related to each other
Answer:

C

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Question 7

A company's board of directors is found to have committed widespread fraud and engaged in a wide
range of unethical practices. Which of the following is the LEAST likely consequence of this?

  • A. Insolvency or bankruptcy for the company
  • B. Prison sentences for company directors
  • C. Loss of credibility
  • D. A significant rise in the company's share price
Answer:

D

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Question 8

Paul is asked to work for a company that runs online casinos, but he has a deep seated conviction
that gambling in any form is immoral. This dilemma is an example of a tension between:

  • A. Societal and professional values
  • B. Personal and corporate values
  • C. Corporate and professional values
  • D. None of the above
Answer:

B

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Question 9

What can companies do in order to minimize the likelihood of future legislation?

  • A. Maintain effective self regulation
  • B. Insist on the highest standards of ethical behavior from their company and its employees
  • C. Understand and address what the public expects of companies in terms of ethical behavior and social responsibilities
  • D. All of the above
Answer:

D

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Question 10

The introduction of restrictions on how companies are permitted to advertise to children is a UK
government reaction to a tension between:

  • A. Professional and corporate values
  • B. Corporate and societal values
  • C. Personal and societal values
  • D. Personal and professional values
Answer:

B

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