Practice Test GeeksACCA Applied Skills Practice Test
← All ACCA AS Flashcard Decks

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

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

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

    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.

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

    Answer: On the first day of employment

    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).

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

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

    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).

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

    Answer: The company has not traded for six months

    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.

  5. An 'agency' relationship exists when:

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

    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.

  6. Which of the following describes 'apparent authority' of an agent?

    Answer: Authority that a principal holds the agent out as having, though no actual authority exists

    Apparent (ostensible) authority arises when the principal represents to a third party that the agent has authority, even if actual authority has been revoked or never given.