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:	Constitution of a company
Chapter Number:	13 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 13 - 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: 13 - Constitution of a company
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

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1 / 15

Which of the following parties signs a company's memorandum of association?

The subscribers

The promoter

The directors

2 / 15

Which of the following is true of model articles of association?

Model articles of association describe how the company is to be managed and administered

A company must only use the model articles of association that is relevant to its type of company

The content of model articles of association cannot be amended by the members

3 / 15

Which of the following is NOT something that would be found within model articles of association?

Clauses relating to the mission statement of the company

Clauses relating to the rights of members

Clauses relating to the transfer of shares

4 / 15

Which of the following statements regarding changing a company's articles of association is correct?

A company must send copies of the amended articles to the Registrar of Companies within 28 days of the amendment taking place

A company may only change its articles once in a financial year

A company requires a special or written resolution with a 75% majority to change its articles

5 / 15

Which of the following changes to a company's articles of association is void?

Changes that restrict the objects of the company

Changes that conflict with the Companies Act

Changes that allow a member additional votes so that they may block company resolutions on certain issues

6 / 15

Which of the following is a correct rule concerning company names?

A company may be required to change its name if it is deemed offensive by the Secretary of State

A company may not have a name that suggests a connection with the Government

A company may not set its own rules for changing its name

7 / 15

Are companies permitted to change their names and domiciles?

A company may change its domicile but not its name

A company may change its name but not its domicile

A company may change its name and its domicile

8 / 15

Which of the following parties is contractually bound by a company's constitution?

The company

Third parties with a business relationship with the company

Members in a capacity other than as a member

Company directors

9 / 15

A company may have restricted objects and therefore it may not be permitted to enter into certain contracts.

Which of the following statements describes the position of third parties whose contract with a company is outside the scope of its objects?

The contract will be binding on the company and the third party

The contract is voidable at the instance of the company

The company is required to ratify the contract for it to be binding on it

The contract will not be a valid one

10 / 15

Which TWO of the following are included in the content of a company's model articles of association?

Payment of dividends
Payment of charitable donations
Formation of a remuneration committee
Appointment of directors

2 and 3

1 and 2

1 and 4

2 and 4

11 / 15

Which of the following is true regarding the content of model articles of association?

The content of model articles of association includes clauses relating to communication with members

The content of model articles of association includes clauses relating to the remuneration of employees

The content of model articles of association includes clauses relating to the ethical treatment of suppliers

The content of model articles of association is the same for all types of company

12 / 15

Which of the following changes to a company's articles of association is valid?

Compelling a member to accept increased liability on the company's shares that they hold

Permitting the company to perform an illegal act

Compelling a member to subscribe for additional shares

Reducing the majority needed in a resolution to change the company's name to 25%

13 / 15

Which of the following statements regarding members wishing to amend a company's articles of association is correct?

A majority of members may not force a transfer of shares from the minority to themselveseven if it is in the best interests of the company as a whole

A minority cannot prevent the majority from unjustly discriminating against them by changing the articles

The change must be bona fide for the benefit of the company as a whole

The majority may not alter the articles if a minority feels it is prejudicial to their interests

14 / 15

Which of the following is true regarding the choice of company name?

Companies that are registered as Welsh must end their name with '(Cym)'

No name may be offensive or sensitive as defined by the Secretary of State

Names that suggest a connection with government are void

All private companies must end their name with 'Ltd'

15 / 15

Which TWO statements concerning company names and passing-off action are correct?

Only the Company Names Adjudicators can create a new company name, if one is needed, following a complaint about a company name that is too similar to another
A passing-off action will fail if the claimant has not sought a remedy from the Company Names Adjudicators first
A company can be prevented by a court injunction from using its name, even if it is properly registered
Courts can refuse an injunction to prevent the use of a company name if the businesses are sufficiently different in nature

1 and 4

2 and 3

3 and 4

1 and 2