These are ACCA F4 English (CL/LW) Corporate and Business Law MCQs for Part-F of the Syllabus “Management, administration and the regulation of companies”.

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:	“Management, administration and the regulation of companies – MCQs”
Chapter Number:	25 of the Practice and Exam Kit
Syllabus Area:	F – “Management, administration and the regulation of companies”
Questions Type:	CBE MCQs
Exam Section:	Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part F of the Syllabus; “Management, administration and the regulation of companies” of ACCA F4 English (CL/LW) Corporate and Business Law Module.

Time

These MCQs are not time-bound. Take your time and solve them without stress. Pay proper attention and focus. Do not rush or hesitate.

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.

Keywords

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F4 (ENG) - Chapter 25 - Part F - MCQs

Course: ACCA - Association of Chartered Certified Accountants
Subject: F4 (LW/CL) (ENGLISH) - Corporate And Business Law
Syllabus Area: F - Management, administration and the regulation of companies
Chapter in Kit: 25 - MTQ Bank 5
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

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1 / 16

Caz is a director of Dull plc, but she also carries out her own business as a wholesale supplier of specialist metals under the name of Era Ltd. Last year Dull plc entered into a contract to buy a large consignment of metal from Era Ltd. Caz attended the board meeting that approved the contract and voted in favour of it, without revealing any link with Era Ltd.

REQUIREMENT

Which of the following describes a director's statutory duties?

Duties created under common law principles of agency law

Duties created under the UK Corporate Governance Code

Duties created under the terms of a director's service contract

Duties created by Parliament under the Companies Act

2 / 16

REQUIREMENT

Which of the following duties of the directors Caz has breached?

Declare interest in proposed transaction or arrangement

Duty to exercise independent judgment

Promote the success of the company

Declaration of interest in existing transaction or arrangement

3 / 16

Katch Ltd is a small private company. Although there are three members of its board of directors, the actual day-to-day running of the business is left to one of them, Len, who simply reports back to the board on the business he has transacted. Len refers to himself as the Chief Executive Officer of Katch Ltd, although he has never been officially appointed as such.

Six months ago Len entered into a contract on Katch Ltd's behalf with Mo to produce some advertising material for the company. However Katch Ltd did not wish to proceed with the advertising campaign and the board of directors has refused to pay Mo, claiming that Len did not have the necessary authority to enter into the contract with him.

REQUIREMENT

Which of the following describes a director's express authority?

The authority granted to the director by the chief executive officer

The authority granted to the director by the shareholders

The authority granted to the director by the company secretary

The authority granted to the director by the board of directors

4 / 16

REQUIREMENT

Which of the following describes the extent of a chief executive officer's implied authority?

To enter the company into administrative contracts only

To enter the company into contracts up to a maximum value that is set by the board

To enter the company into any administrative or commercial contract

To enter the company into commercial contracts only

5 / 16

REQUIREMENT

Is Mo is entitled to payment from Katch Ltd in respect of the contract entered into by Len and why?

No – Mo should have checked whether Len had authority before entering into the contract

Yes – Len had express authority to enter into the contract

No – Len did not have authority to enter into the contract

6 / 16

Boo was recently disqualified from acting as a company director under the Company Directors Disqualification Act 1986. She decided to continue trading and arranged for her daughter, Mills, to form a new company, Purr Ltd.

On registration, Mills was appointed as a director, however, she would receive instruction on what to do from Boo's personal financial adviser, Beni, who is accustomed to act on Boo's orders. Beni was not appointed as a director but is identified as the company's managing director on all its official paperwork.

Suki was also appointed as a director, but his role is limited to providing an independent view on how the company is being run.

REQUIREMENT

Which of the following statements concerning company directors is correct?

The minimum number of directors required by all companies is one

The minimum age of a director is 18

A company may act as a director of another company

All companies must hold a meeting if they wish to remove a director

7 / 16

Suki was also appointed as a director, but his role is limited to providing an independent view on how the company is being run.

REQUIREMENT

Which type of director Boo is?

Non-executive director

De facto director

Shadow director

De jure director

8 / 16

Suki was also appointed as a director, but his role is limited to providing an independent view on how the company is being run.

REQUIREMENT

Which type of director Mills is?

De facto director

De jure director

Non-executive director

Shadow director

9 / 16

Suki was also appointed as a director, but his role is limited to providing an independent view on how the company is being run.

REQUIREMENT

Which type of director Beni is?

De jure director

Shadow director

Non-executive director

De facto director

10 / 16

Suki was also appointed as a director, but his role is limited to providing an independent view on how the company is being run.

REQUIREMENT

Which type of director Suki is?

Shadow director

De facto director

De jure director

Non-executive director

11 / 16

Vic, an ACCA member, is the sole director of Envy Ltd, a wholsesaler of books. Last year he employed Div, his solicitor, to act as Envy Ltd's company secretary. Vic believed that Div had all the necessary knowledge and experience needed to do the job. Whilst Vic was away on business, Div entered Envy Ltd into a contract with Green Ltd to buy a consignment of tablet computers that would be resold as electronic books. Vic was not happy about this and has decided to take action.

REQUIREMENT

Which of the following statements concerning Div is correct?

Envy Ltd should have passed an ordinary resolution appointing Div as company secretary before he could act as such

Div required authorisation from the Registrar of Companies before acting as company secretary

Div should have passed professional company secretary exams before acting as company secretary

Div was free to act as company secretary as soon as he was appointed

12 / 16

REQUIREMENT

Is Envy Ltd bound by the contract to buy the tablet computers?

Yes, a company secretary is free to make any contracts on behalf of the company

No, because the contract is commercial in nature

No, because a company secretary has no authority to bind a company in any contract

Yes, in this case Div has implied authority to bind the company in this contract

13 / 16

REQUIREMENT

Is Vic legally permitted to perform the role of company secretary of Envy Ltd?

No, a sole director may not act as company secretary

Yes, Vic is ACCA qualified and therefore may act as company secretary

Yes, Vic is permitted by virtue of his position as company director to also act as company secretary

No, only public companies are permitted to appoint company secretaries

14 / 16

Grave plc's year end was on 31 December 20X7. Notice of its annual general meeting was sent to shareholders on 1 March 20X8 and it was to be held on 25 March 20X8. However, the date of the meeting was not convenient for 75% of the company's shareholders who decided that the meeting should be held on 10 March 20X8. The meeting took place on 10 March 20X8.

Later that year, the company's auditors decided to resign. They requested that a general meeting should be held so that they can inform the shareholders of the circumstances surrounding their resignation. The directors of Grave plc are not keen for such a meeting to be held and are refusing to organise it.

REQUIREMENT

Which TWO of the following are examples of the ordinary business dealt with at an annual general meeting?

Fixing the auditor's remuneration

Paying shareholders their dividends

Appointment of the company secretary

Considering the directors' report

15 / 16

REQUIREMENT

Was Grave plc's annual general meeting was called correctly and why?

No – it was not called within the required time after the company's year end

Yes – all requirements for calling a meeting were correctly followed

No – the meeting date should not have differed from the one stated in the official notice

No – insufficient notice was given to members

16 / 16

REQUIREMENT

Are the directors of Grave Ltd required to hold the general meeting as requested by the auditors and why?

Yes – auditors have authority in law to request a general meeting to hear circumstances behind their resignation

No – auditors have authority to request a general meeting but directors have the power to ignore them if it is not in the interests of the company

Yes – auditors have authority in law to request a company holds a general meeting at any time

No – the power to call general meetings is only granted to directors

Your score is

F4 (CL – ENG) – Chapter 25 – PART F – CBE MCQs – ACCA