ACCA AS Corporate & Business Law (UK) 1

Question 1

Which of the following correctly describes a 'contract'?

Accepted Answer

A legally binding agreement supported by offer, acceptance, consideration and intention to create legal relations

Answer

Any written agreement between two or more parties

Answer

An agreement that must always be witnessed by a solicitor

Answer

A promise that is binding regardless of consideration

Question 2

In English contract law, consideration must be:

Accepted Answer

Sufficient but need not be adequate

Answer

Adequate and sufficient

Answer

Adequate but need not be sufficient

Answer

Provided in money only

Question 3

Under the Companies Act 2006, a private company limited by shares is denoted by:

Accepted Answer

Ltd

Answer

plc

Answer

LLP

Answer

LP

Question 4

Which of the following is a duty of a company director under the Companies Act 2006?

Accepted Answer

To act in the way they consider most likely to promote the success of the company for the benefit of its members

Answer

To maximise dividends for shareholders every year

Answer

To ensure the company is listed on a stock exchange

Answer

To attend every board meeting without exception

Question 5

Which type of company resolution requires a majority of more than 50% to pass?

Accepted Answer

Ordinary resolution

Answer

Special resolution

Answer

Written resolution

Answer

Unanimous resolution

Question 6

A company's articles of association:

Accepted Answer

Govern the internal management and administration of the company

Answer

Define the external capacity of the company

Answer

Must be registered at Companies House only when the company is wound up

Answer

Have no legal effect between shareholders