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CIMA CIMA Certificate BA4 New Questions

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Question 84

Which of the following is incorrect?

Options:

A.

A private company must have at least two directors.

B.

The board usually has the power to appoint a managing director.

C.

A board usually reaches its decisions by majority vote.

D.

The first directors of the company are those persons who are named as directors on Form IN01.

Question 85

Which of the following is the responsibility of the Chairman, according to the UK Corporate Governance Code?

Options:

A.

Authorizing major investments

B.

Controlling the workings of the Board

C.

Operational control

D.

Carrying out the policies of the Board

Question 86

B has been employed by Wye Ltd for 10 years. His contract of employment states that, if either Wye Ltd or B wishes to terminate the contract, each party must give the statutory minimum period of notice.

 

Which of the following statements is correct?

Options:

A.

Both B and Wye Ltd are entitled to 10 weeks' notice.

B.

B is entitled to 10 weeks' notice but Wye Ltd is entitled to only 1 week's notice.

C.

B is entitled to 1 month's notice and Wye Ltd is entitled to 10 weeks' notice.

D.

Both B and Wye Ltd are entitled to 1 week's notice.

Question 87

Which of the following is incorrect in relation to a reduction of capital by a private company?

Options:

A.

The company must pass a special resolution to authorize the reduction of capital.

B.

The reduction must be approved by the court.

C.

It is not necessary for the company’s Articles of Association to authorize a reduction of capital.

D.

The directors must make a solvency statement.

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Exam Code: BA4
Exam Name: Fundamentals of Ethics, Corporate Governance and Business Law
Last Update: May 5, 2024
Questions: 661
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