ACA Business Law 2

Question 1

Which of the following accurately describes a general partnership under the Partnership Act 1890?

Accepted Answer

Partners are jointly and severally liable for all firm debts

Answer

Partners have limited liability for firm debts

Answer

A partnership must be registered at Companies House

Answer

A partnership is a separate legal entity from its partners

Question 2

A contract term that excludes liability for negligence will be subject to which statutory test under UCTA 1977?

Accepted Answer

The reasonableness test

Answer

The proportionality test

Answer

The good faith test

Answer

The transparency test

Question 3

Under the Companies Act 2006, which document sets out the internal rules governing how a company is managed?

Accepted Answer

Articles of association

Answer

Certificate of incorporation

Answer

Memorandum of association

Answer

Prospectus

Question 4

In employment law, which test is primarily used to determine whether a worker is an employee rather than self-employed?

Accepted Answer

A multi-factor test including control, integration, and economic reality

Answer

The economic reality test only

Answer

The control test only

Answer

The mutuality of obligation test alone

Question 5

Which remedy allows a court to set aside a contract as if it had never existed, restoring the parties to their pre-contractual position?

Accepted Answer

Rescission

Answer

Damages

Answer

Specific performance

Answer

Injunction

Question 6

Under the Fraud Act 2006, which of the following is NOT a recognised way of committing fraud?

Accepted Answer

Fraud by negligent misstatement

Answer

Fraud by false representation

Answer

Fraud by failing to disclose information

Answer

Fraud by abuse of position

Question 7

A floating charge crystallises and becomes a fixed charge when which of the following events occurs?

Accepted Answer

The company goes into administration or liquidation

Answer

The company issues new shares

Answer

The company appoints a new director

Answer

The company changes its registered office