BA4 Exam Dumps - CIMA Certificate Questions and Answers

There must be profits available for distribution as a dividend.

The company must have accumulated realized profits.

The company's net assets must equal the total of called up share capital plus un-distributable reserves.

The company must take account of accumulated realized losses.

Determine the appropriate course of action that is consistent with the fundamental principles identified

Evaluate the consequences of each possible course of action

Consult with other appropriate persons within the firm or employing organization for help if the matter remains unresolved

Proceed with the course of action that would do least damage to a professional accountant's career prospects

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

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

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

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

Authorizing major investments

Controlling the workings of the Board

Operational control

Carrying out the policies of the Board

Just because everyone bends the rules in practice does not mean they should do so

Everyone bends the rules so it is good practice to do so for the benefit of clients

Just because there are rules does not mean they should be adhered to by everyone

Bending the rules is not the same as breaking them

A private company must have at least two directors.

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

A board usually reaches its decisions by majority vote.

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

In general, silence cannot amount to a misrepresentation.

A misrepresentation is not actionable unless it induced the claimant to contract.  

An honest statement of opinion by a layman cannot amount to a misrepresentation.

A person cannot be liable for misrepresentation, if the truth of the statement could be determined by the misrepresentee making reasonable enquiries.

A public company which provides a loan to one of its directors commits a criminal offence unless the loan is approved by the shareholders

If a public company pays the debts of one of its directors on terms that the payment must be repaid by the director, the shareholders must approve the payment

A public company cannot make loans to its directors

A public company is not subject to any restrictions when making a loan to one of its directors

Directors owe a duty to promote the success of the company.

Directors' duties are codified in the UK Corporate Governance Code.

Directors must act in accordance with the company's constitution.

Directors' duties are owed to the shareholders as a whole.