Cima selftestengine new Release Ba4 Cima Certificate Questions by Melania q503 vce pdf

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Exam Name:	Fundamentals of Ethics, Corporate Governance and Business Law
Exam Code:	BA4 Dumps
Vendor:	CIMA	Certification:	CIMA Certificate
Questions:	661 Q&A's	Shared By:	melania

Question 44

Which of the following does NOT describe the responsibilities of the audit committee?

Options:

The review of the internal audit programme and significant findings of the auditors. The review of the company's systems of internal control. The review of the company's system to facilitate whistle blowing

The review of the company's financial statements and any interim reports produced. The review of the structure, size and composition of the board. The review of the company's internal control and risk management system

The discussion with auditors on any significant matters that arose during the audit. The recommendations on the appointment and removal of auditors. The setting of the audit fee in discussion with the auditors.

The review of the company's financial statements and any interim reports produced. The review of the company's systems of internal controls. The review of the audit report and any management letter provided by the external auditor

Discussion

Question 45

Brian is the registered owner of 500 shares in Exe Ltd. Which of the following statements is correct?

Options:

Brian is only contractually bound to Exe Ltd in respect of the provisions contained in the company's Articles of Association.

Brian is only contractually bound to Exe Ltd and the other present shareholders of the company in respect of the provisions contained in the company's Articles of Association.

Brian is only contractually bound to Exe Ltd and the present directors in respect of the provisions contained within the company's Articles of Association.

Brian is contractually bound to Exe Ltd and the present and future shareholders in respect of the provisions contained within the company's Articles of Association.

Discussion

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Question 46

Which of the following statements is correct?

(i) The Articles of Association of a private company limited by shares may be altered by special resolution.

(ii) The Articles of Association of a private company limited by shares may be altered by a written resolution.

(iii) The Articles of Association of a private company limited by shares may be altered by an ordinary resolution.

Options:

(i) only

(ii) only

(i) and (ii) only

(ii) and (iii) only

Discussion

Question 47

Which of the following is incorrect in relation to the remedy of liquidated damages?

Options:

A liquidated damages clause will be void if it amounts to a penalty clause.

A liquidated damages clause will apply where it is a genuine attempt to pre-estimate the loss caused by a breach of contract.

If a liquidated damages clause is held to be void, the innocent party cannot claim on a quantum meruit basis.

If a liquidated damages clause is found to be reasonable, the amount specified must be claimed, even if it is less than the actual loss caused by the breach.

Discussion

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