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

These multiple-choice questions (MCQs) are designed to help ACCA F4 Global 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 Global (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 Global – CL/LW
Chapter:	Company formation
Chapter Number:	12 of the Practice and Exam Kit
Syllabus Area:	D – “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; “Formation and constitution of business organisations” of ACCA F4 Global (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 Global 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 (GLO) - Chapter 12 - Part D - MCQs

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

INSTRUCTIONS

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1 / 15

Which of the following describes the general duty of a promoter?

Reasonable skill and care

Due diligence

Competence and accuracy

2 / 15

Which of the following statements concerning pre-incorporation contracts is correct?

Pre-incorporation contracts must be ratified by the company

Pre-incorporation contracts cannot be ratified by the company

Pre-incorporation contracts can be ratified by the company if the third party agrees

3 / 15

Which of the following parties is NOT liable on a pre-incorporation contract?

The promoter

The third party

The company

4 / 15

Which of the following criteria must a public company meet before it can trade?

It must obtain a trading certificate from the Registrar of Companies

Its shares must be listed on a stock exchange

It must have appointed an auditor

5 / 15

Which of the following criteria must a private company meet before it can trade?

It must have obtained a certificate of incorporation from the Registrar of Companies

It must have obtained a trading certificate from the Registrar of Companies

The members must have agreed to set up the company

6 / 15

Which of the following company books is a public company NOT legally required to keep?

7 / 15

Which of the following is true regarding a register of directors?

The register must include a service address for each director

The register must be made available for inspection by company members for a fee

The register must include shadow directors

8 / 15

The role of which of the following parties is to form a company?

Subscriber

Member

Director

Promoter

9 / 15

Which of the following statements concerning promoters is correct?

An accountant who acts in a professional capacity in the formation of a company is a promoter

A promoter may not own shares in the company that they are forming

A promoter may not make a profit as a result of their position

A promoter that acts as an agent for others must not put themselves into a position where their own interests clash with that of the company they are forming

10 / 15

Which TWO of the following are methods that a promoter can use to avoid liability on pre-incorporation contracts?

Signing the pre-incorporation contract 'on behalf of the company'
Executing the pre-incorporation contract as a deed
Buying an 'off-the-shelf' company
Novating the contract

3 and 4

2 and 3

1 and 3

1 and 2

11 / 15

To register a company, a number of documents must be submitted to the Registrar of Companies.

Which of the following is NOT a document that needs to be sent to the Registrar to register a company?

Articles of association

Statement of compliance

Statement of proposed officers

Memorandum of association

12 / 15

A promoter sent the documents needed to register a company to the Registrar of Companies on 1/1/X1. The Registrar received the documents on 4/1/X1. The certificate of incorporation is dated 6/1/X1 and it is received by the promoter on 8/1/X1.

On which date was the company incorporated?

4/1/X1

6/1/X1

1/1/X1

8/1/X1

13 / 15

In which of the following circumstances must a public company re-register as a private company?

If the market value of its shares falls below the nominal value of the shares

If it fails to pay its corporation tax liability

If its share capital falls below £50,000

If it has makes trading losses for three consecutive years

14 / 15

Which of the following roles is NOT performed by the Registrar of Companies?

Issuing each company's Certificate of Incorporation

Filing copies of each company's special resolutions

Filing a copy of each company's Register of Members

Registering companies that will be sold 'off-the-shelf'

15 / 15

Which TWO of the following correctly describe the requirements for private and public companies to keep accounting records?

Private companies must keep their accounting records for three years
Private companies must keep their accounting records for six years
Public companies must keep their accounting records for six years
Public companies must keep their accounting records for seven years

2 and 3

1 and 3

1 and 4

2 and 4

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