These are ACCA F4 English (CL/LW) Corporate and Business Law MCQs for Part-D of the Syllabus “The formation and constitution of business organisations”.

These multiple-choice questions (MCQs) are designed to help ACCA F4 English students to better understand the exam format. We aim to instill in students the habit of practicing online for their CBE exams. By doing so, students can reduce exam stress and prepare more effectively.

Please note:

Students should not attempt these MCQs until they have studied the entire chapter.
All questions are compulsory, so please do not skip any.

We hope that these MCQs will be a valuable resource for students preparing for the ACCA F4 English (CL/LW) exam.

INFORMATION ABOUT THESE CBE MCQs Test/Quiz

Course:	ACCA – Association of Chartered Certified Accountants
Fundamental Level:	Applied Skills
Subject:	Corporate and Business Law
Paper:	F4 English – CL/LW
Chapter:	Agency law
Chapter Number:	12 of the Practice and Exam Kit
Syllabus Area:	D – “The formation and constitution of business organisations”
Questions Type:	CBE MCQs
Exam Section:	Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part D of the Syllabus; “The formation and constitution of business organisations” of ACCA F4 English (CL/LW) Corporate and Business Law Module.

Time

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Result

Students will get their F4 English CBE MCQs Test results after they finish the entire test. They will also be able to see the correct and incorrect answers, as well as explanations for the incorrect questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seem correct/ or incorrect to you, as per the requirement of the question. Keep your eye on the wording “( select all those which are correct/ or incorrect)“.
Drop-down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

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F4 (ENG) - Chapter 12 - Part D - MCQs

Course: ACCA - Association of Chartered Certified Accountants
Subject: F4 (LW/CL) (ENGLISH) - Corporate And Business Law
Syllabus Area: D - The formation and constitution of business organisations
Chapter in Kit: 12 - Agency law
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

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1 / 15

The purpose of an agency relationship is to form a business contract between which of the following parties?

Principal and third party

Agent and principal

Agent and third party

2 / 15

In order to form an agency relationship by express agreement, what form should the agreement take?

Oral agreement only

Written agreement only

Either oral or written agreement

3 / 15

'Holding out' is a key element of which form of agency?

Agency by necessity

Agency by implied agreement

Agency by estoppel

4 / 15

Which type of agent authority is derived from what is usual or customary in the circumstances?

Ostensible authority

Implied authority

Express authority

5 / 15

When combined, which types of agent authority are known as an agent's actual authority?

Express and apparent authority

Implied and ostensible authority

Express and implied authority

6 / 15

Unless circumstances indicate otherwise, which party is NOT liable under a contract properly formed under an agency agreement?

Principal

Third party

Agent

7 / 15

Which of the following statements regarding agency law is correct?

A third party and principal do not need to be in direct contact for a binding contract between them to be formed

A principal may sue their agent if the third party is in breach of contract

An agent may not enforce a contract that they helped to form

8 / 15

Which type of agent runs an accountancy practice?

Commercial agent

Partner

Company director

Promoter

9 / 15

Which of the following statements concerning a principal ratifying a contract formed by an agent is correct?

At least half of the provisions of the contract must be ratified

The principal must communicate their ratification of the contract clearly to the third party

The principal need not have existed when the contract was made

The principal need not have had legal capacity when the contract was made

10 / 15

Which TWO types of agency are formed without the agent's consent?

Agency by ratification

Agency by express agreement

Agency by estoppel

Agency by implied agreement

11 / 15

In agency law, which of the following statements relates to agency by estoppel?

There is no agency agreement but the principal looks after another person's property when they cannot be contacted

Neither

Both

There is no agency agreement but the principal states publicly that a person is their agent

12 / 15

Which of the following is included in an agent's ostensible authority?

The authority that the agent states that they have

The authority that is usual in the circumstances and what the principal impliedly gives the agent

The authority that the third party expects the agent to have

13 / 15

In which of the following circumstances will an agent's apparent authority arise?

When, without the principal being aware, an agent tells a third party what their authority is

Where a principal has represented a person to third parties as being their agent, despite not actually appointing the person as such

What a third party determines the agent's authority is from what is usual in the circumstances

When the principal tells the agent orally what the limit of their authority is

14 / 15

In which of the following circumstances will an agency relationship NOT be terminated?

Bankruptcy of principal

Performance by the principal of their contractual obligations

Insanity of principal

Death of principal

15 / 15

In which TWO of the following situations will an agent be liable on a contract?

Where the agent acts on their own behalf even though they purport to be acting for the principal

Where it is usual business practice for the agent to be liable

Where the third party agrees with the principal that the agent will be liable

Where the principal intends for the agent to take personal liability

Your score is

F4 (CL – ENG) – Chapter 12 – PART D – CBE MCQs – ACCA