ACCA Business and Corporate Law 4

Question 1

Under contract law, what is 'promissory estoppel' and when does it apply?

Accepted Answer

A doctrine that enforces a promise to prevent injustice when the promisee reasonably relied on it

Answer

Promissory estoppel enforces a promise even without consideration when the promisee reasonably and detrimentally relied on it, and injustice can only be avoided by enforcement.

Question 2

Which type of merger requires approval from both companies' boards of directors AND shareholders?

Accepted Answer

Statutory merger

Answer

A statutory merger under state law typically requires board approval and shareholder votes from both the acquiring and target corporations.

Question 3

In partnership law, what is the liability exposure of a general partner for partnership debts?

Accepted Answer

Unlimited personal liability

Answer

General partners bear unlimited personal liability for all debts and obligations of the partnership, meaning creditors can reach personal assets.

Question 4

What is insider trading under US securities law?

Accepted Answer

Trading securities based on material, non-public information in breach of a duty

Answer

Insider trading occurs when a person trades securities based on material non-public information in breach of a fiduciary or other duty of trust and confidence.

Question 5

Under employment law, which federal statute prohibits employment discrimination based on race, color, religion, sex, and national origin?

Accepted Answer

Title VII of the Civil Rights Act of 1964

Answer

Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, and national origin by employers with 15 or more employees.

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA - Association of Chartered Certified Accountants Practice Test

ACCA Business and Corporate Law 4