ACCA AS Corporate & Business Law (UK) 2

Question 1

Which of the following correctly describes a 'fraudulent misrepresentation'?

Accepted Answer

An untrue statement made without belief in its truth, or recklessly as to its truth

Answer

Fraudulent misrepresentation (per Derry v Peek) is a false statement made knowingly, without belief in its truth, or recklessly as to whether it is true or false.

Question 2

Under employment law, an employee is entitled to a written statement of employment particulars within:

Accepted Answer

On the first day of employment

Answer

Since April 2020, employees and workers are entitled to a written statement of particulars from day one of employment (Employment Rights Act 1996 as amended).

Question 3

The 'lifting of the corporate veil' doctrine allows courts to:

Accepted Answer

Ignore the separate legal personality of a company and hold members personally liable

Answer

Lifting the corporate veil is an exceptional remedy where courts disregard the company's separate legal personality to impose personal liability on shareholders or directors (e.g., in fraud cases).

Question 4

Which of the following is NOT a ground for compulsory winding up of a company by the court?

Accepted Answer

The company has not traded for six months

Answer

Failure to trade for six months is not a statutory ground for compulsory winding up. Inability to pay debts, just and equitable grounds, and member numbers falling below minimums are all grounds.

Question 5

An 'agency' relationship exists when:

Accepted Answer

One person (agent) is authorised to act on behalf of another (principal) in legal relations with third parties

Answer

Agency is the relationship where an agent has authority to create legal relations (e.g., contracts) between the principal and third parties on the principal's behalf.

ACCA Applied Skills Practice Test

ACCA Applied Skills Practice Test

ACCA AS Corporate & Business Law (UK) 2