These are ACCA F4 English (CL/LW) Corporate and Business Law MCQs for Part-G of the Syllabus “Insolvency law”.

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:	Insolvency and administration
Chapter Number:	26 of the Practice and Exam Kit
Syllabus Area:	G – “Insolvency law”
Questions Type:	CBE MCQs
Exam Section:	Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part G of the Syllabus; “Insolvency law” 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 26 - Part G - MCQs

Course: ACCA - Association of Chartered Certified Accountants
Subject: F4 (LW/CL) (ENGLISH) - Corporate And Business Law
Syllabus Area: G - Insolvency law
Chapter in Kit: 26 - Insolvency and administration
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

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1 / 15

Which of the following parties applies for a company to be liquidated in a creditors' voluntary liquidation?

The creditors

The members

The directors

2 / 15

Which of the following determines whether a voluntary liquidation is a members' or creditors' voluntary liquidation?

The solvency of the company

A decision of the members

A decision of the creditors

3 / 15

Which of the following parties may apply to the court for the compulsory liquidation of a company?

The company's auditor if they deem it necessary in the public interest

The Registrar of Companies if they have not received copies of the company's last three financial statements

A creditor who is owed more than £750 and who sent the company a written demand for it over three weeks ago and has not had a reply

4 / 15

In which of the following situations will the court order the compulsory liquidation of a company on the just and equitable ground?

Where 50% of the members disagree with the actions of the directors

When the main object of the company cannot be achieved

Where the company has failed to pay its creditors for three months

5 / 15

Which of the following parties has their interest paid last out of a liquidated company's assets?

Members

Unsecured creditors

Employees

6 / 15

In the context of corporate insolvency, which of the following describes the purpose of an administration order?

To attempt to rescue the company as a going concern

To allow the company to pay its debts before it is liquidated

To prevent legal actions being taken against it

7 / 15

Which of the following parties may appoint an administrator without a court order?

An unsecured creditor

A floating chargeholder

A fixed charge holder

8 / 15

Which of the following names is given to the person in charge of the voluntary liquidation of a company?

Receiver

Administrator

Chargee

Liquidator

9 / 15

At which point does a members' voluntary liquidation commence?

As soon as the liquidator is appointed

As soon as the directors authorise it after the resolution to liquidate the company is passed

As soon as the Registrar receives a copy of the resolution to liquidate the company

As soon as the members pass the necessary resolution

10 / 15

Which TWO of the following resolutions may commence a creditors' voluntary liquidation of a company?

A special resolution of the creditors

A special resolution of the members

A resolution of the board of directors with a 75% majority

A written resolution of the members with a 75% majority

11 / 15

Which of the following statements relates to a compulsory liquidation?

An insolvency practitioner acts as liquidator

The liquidation process is controlled by the court

12 / 15

Which of the following statements concerning a members' voluntary liquidation is correct?

Notice of the liquidation must be published in The Gazette

The final act of the liquidator is to file the company's final accounts

The liquidator must hold an annual general meeting of the contributories

Creditors must approve the choice of liquidator

13 / 15

Which of the following parties has their interest paid first out of a liquidated company's assets?

Employees

Those owed deferred debts

The liquidator

Floating chargeholders

14 / 15

Which of the following statements concerning administration is correct?

If the company cannot be rescued as a going concern, the next objective of administration is to achieve a better result for creditors than an immediate liquidation would

The official receiver is put in charge of a company subject to an administration order

To commence administration always requires a court order

A liquidation order may be granted against the company if the company is in administration

15 / 15

Which TWO of the following will end an administration period?

After 12 months have elapsed since the administration commenced

A court order granted following a special resolution of the members

Agreement of the creditors

The success of the administration