CIMA Updated BA4 Exam Questions and Answers by parker

A, B C and D are sole directors and shareholders of EFG Company each holding 25% of the shares in the company. The articles of association

of EFG Company state that "the directors cannot enter into any contract on behalf of the company exceeding $30,000 without the agreement of all the shareholders’’.

B contracted on behalf of the company for $40,000 with Y Company without the agreement of the other shareholders. Which of the following is correct?

1. Y Company may enforce the contract against EFG Company

2. A, C and D may obtain an injunction to stop the contract being canted out

3. B may be liable to EFG Company for breach of duty.

Which of the following are situations in which the accountant is permitted to disclose confidential information?

Select ALL that apply.

According to CIMA, governance and social responsibility policies are:

T contracted to buy a washing machine from AB (Retailers) Ltd for his personal use at home. The contract contained a term excluding liability for any breach of the condition implied by the Sale of Goods Act 1979 that the goods should be of "satisfactory quality". The contract was on AB (Retailers) Ltd's standard form contract.

Which of the following is correct?

(i) Conditions implied by the Sale of Goods Act 1979 cannot be excluded in any sale.

(ii) This is a consumer sale and the clause excluding liability is void.

(iii) This is a non-consumer sale and the clause is void unless reasonable.