Corporate & Business Law (UK) Flashcards
6 cards from real ACCA AS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Corporate & Business Law (UK) flashcards as text
Which of the following correctly describes a 'contract'?
Answer: A legally binding agreement supported by offer, acceptance, consideration and intention to create legal relations
A valid contract requires: offer, acceptance, consideration, intention to create legal relations and capacity. Written form is not required for most contracts.
In English contract law, consideration must be:
Answer: Sufficient but need not be adequate
Consideration must be sufficient (have some value in law) but need not be adequate (it need not be a fair or equal exchange). Courts do not investigate adequacy.
Under the Companies Act 2006, a private company limited by shares is denoted by:
Answer: Ltd
A private company limited by shares uses the suffix 'Ltd' (or 'Limited'). Public companies use 'plc' (or 'Public Limited Company').
Which of the following is a duty of a company director under the Companies Act 2006?
Answer: To act in the way they consider most likely to promote the success of the company for the benefit of its members
Section 172 CA 2006 requires directors to act in the way they consider, in good faith, most likely to promote the success of the company for the benefit of its members as a whole.
Which type of company resolution requires a majority of more than 50% to pass?
Answer: Ordinary resolution
An ordinary resolution is passed by a simple majority (more than 50%). A special resolution requires at least 75% of votes cast.
A company's articles of association:
Answer: Govern the internal management and administration of the company
The articles of association constitute the internal rulebook of the company, governing matters such as directors' powers, share transfers and shareholder meetings.