Business and Corporate Law Flashcards
7 cards from real ACCA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Business and Corporate Law flashcards as text
Under contract law, what is 'promissory estoppel' and when does it apply?
Answer: A doctrine that enforces a promise to prevent injustice when the promisee reasonably relied on it
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.
Which type of merger requires approval from both companies' boards of directors AND shareholders?
Answer: Statutory merger
A statutory merger under state law typically requires board approval and shareholder votes from both the acquiring and target corporations.
In partnership law, what is the liability exposure of a general partner for partnership debts?
Answer: Unlimited personal liability
General partners bear unlimited personal liability for all debts and obligations of the partnership, meaning creditors can reach personal assets.
What is insider trading under US securities law?
Answer: Trading securities based on material, non-public information in breach of a duty
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.
Under employment law, which federal statute prohibits employment discrimination based on race, color, religion, sex, and national origin?
Answer: Title VII of the Civil Rights Act of 1964
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.
What is the legal significance of a 'quorum' in corporate governance?
Answer: The minimum number of shares or directors needed to conduct valid business
A quorum is the minimum number of shareholders or directors whose presence is required for a meeting to legally transact business.
Which contract clause specifies the amount of damages a party will receive upon breach, determined at the time of contracting?
Answer: Liquidated damages clause
A liquidated damages clause pre-sets the amount of damages payable upon breach; courts will enforce it if the amount is a reasonable estimate of anticipated harm.