Corporate AND Business LAW - EXAM KIT PDF

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CORPORATE AND BUSINESS LAW EXAM REVISION KIT...

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 ACCA 

AppliedSkills   CorporateandBusinessLaw(ENG)

 EXAMKIT             

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L W (E NG): COR P OR ATE AN D  B U SI N E SS L AW 

          BritishLibraryCataloguing‐in‐PublicationData AcataloguerecordforthisbookisavailablefromtheBritishLibrary. Publishedby: KaplanPublishingUK Unit2TheBusinessCentre MollyMillar’sLane Wokingham Berkshire RG412QZ ISBN:978‐1‐78740‐100‐6 ©KaplanFinancialLimited,2018 PrintedandboundinGreatBritain The text in this material and any others made available by any Kaplan Group company does not amount to advice on a particular matter and should not be taken as such. No reliance should be placedonthecontentasthebasisfor anyinvestmentorotherdecisionorinconnectionwithany advice given to third parties. Please consult your appropriate professional adviser as necessary. KaplanPublishingLimitedandallotherKaplangroupcompaniesexpresslydisclaimallliabilitytoany personinrespectofanylossesorotherclaims,whetherdirect,indirect,incidental,consequentialor otherwisearisinginrelationtotheuseofsuchmaterials. Allrightsreserved.Nopartofthisexaminationmaybereproduced ortransmittedin anyformor byanymeans,electronicormechanical,includingphotocopying,recording,orbyanyinformation storageandretrievalsystem,withoutpriorpermissionfromKaplanPublishing. Acknowledgements ThesematerialsarereviewedbytheACCAexaminingteam.Theobjectiveofthereviewistoensure that the material properly covers the syllabus and study guide outcomes, used by the examining teaminsettingtheexams,intheappropriate breadth and depth.The reviewdoes not ensure that every eventuality, combination or application of examinable topics is addressed by the ACCA ApprovedContent.Nordoesthereviewcomprisea detailedtechnicalcheckof thecontentasthe ApprovedContentProviderhasitsownqualityassuranceprocessesinplaceinthisrespect. ThepastACCAexaminationquestionsarethe copyrightoftheAssociation of CharteredCertified Accountants. The original answers to the questions from June 1994 onwards were produced by theexaminersthemselvesandhavebeenadaptedbyKaplanPublishing. We are grateful to the Chartered Institute of Management Accountants and the Institute of Chartered Accountants in England and Wales for permission to reproduce past examination questions.TheanswershavebeenpreparedbyKaplanPublishing. P. 2

K AP L ANP U B L ISH IN G

CONTENTS Page

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Indextoquestionsandanswers

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5

Examtechnique

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8

Paperspecificinformation

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9

Kaplan’srecommendedrevisionapproach

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10

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Section

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1

Objectivetestquestions

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1

2

Multi‐taskquestions



55

3

Answerstoobjectivetestquestions

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95

4

Answerstomulti‐taskquestions

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115

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ACCASpecimenexaminationpaper

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K AP L ANP U B L ISH IN G

P. 3

L W (E NG): COR P OR ATE AN D  B U SI N E SS L AW 

Newfeaturesinthisedition  Inadditiontoprovidingawiderangingbankof practice questions,wehavealsoincluded in this edition: 

Examples of new‐style ‘multi‐task’ questions that will form part of the new examination format.

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Paperspecificinformationandadviceonexamtechnique.

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Our recommended approach tomakeyour revision for this particular subjectas effective aspossible.

Youwillfindawealthofotherresourcestohelpyouwithyourstudiesonthefollowingsites: www.mykaplan.co.ukandwww.accaglobal.com/students/  Quality and accuracy are of the utmost importance to us so if you spot an error in any of our products,pleasesendanemailto[email protected]withfulldetails. OurQualityCo‐ordinatorwillworkwithourtechnicalteamto verifytheerrorandtakeactionto ensureitiscorrectedinfutureeditions.  

P. 4

K AP L ANP U B L ISH IN G

INDEXTOQUESTIONSANDANSWERS INTRODUCTION ThestyleoftheCorporateandBusinessLawexamchangedfromSeptember2014. Accordingly,theoldACCAscenarioquestionshavebeenadaptedtoreflectthenewstyleofpaper. Thesequestionshavebeenlabelledwithan(A)nexttothem.

OBJECTIVETESTQUESTIONS 

Page number Question

Answer

Essentialelementsofthelegalsystem

1

95

Thelawofobligations

6

97

Employmentlaw

22

103

Theformationandconstitutionofbusinessorganisations

30

105

Capitalandthefinancingofcompanies

38

108

Management,administrationandregulationofcompanies

44

110

Insolvencylaw

48

111

Corporatefraudulentandcriminalbehaviour

52

112

K AP L ANP U B L ISH IN G

P. 5

L W (E NG): COR P OR ATE AN D  B U SI N E SS L AW 

MULTI‐TASKQUESTIONS Pagenumber





Question

Answer

(Adapted)



Thelawofobligations 279

AmyandBen

55

115

(A)



280

Arti

56

116

(A)



281

AmyandBry

57

116

(A)



282

BildLtd

58

117

(A)



283

Ali

59

117

(A)



284

Alvin

60

118

(A)



285

Ari

61

118

(A)



286

Bud

62

119

(A)



287

Abid

63

119

(A)



288

Ann

64

120





289

CromwellArms

65

121





Employmentlaw 290

FineLtd

65

121

(A)



291

EveandFred

66

121

(A)



Theformationandconstitutionofbusinessorganisations 292

Elaine

67

122





293

BlackShilling

68

122





294

Ham,SamandTam

69

123

(A)



295

Geo,HoandIo

69

123

(A)



296

Don

70

124

(A)



297

Doc

71

125

(A)



298

GladLtd

72

125





Capitalandthefinancingofcompanies 299

Fanplc

73

126

(A)



300

JudderLtd

74

126

(A)



301

Fin

74

127

(A)



302

Inheritance

75

128

(A)



303

Ho

76

128





P. 6

K AP L ANP U B L ISH IN G

IN D E X  TO QU E STIO NSAN D AN SW E R S

Pagenumber Question

Answer





(Adapted)



Management,administrationandregulationofcompanies 304

Fran,GillandHarry

77

129

(A)



305

KingLtd

78

129

(A)



306

CleanLtd

79

130

(A)



307

GoalLtd

80

130

(A)



308

Doplc

80

131

(A)



309

KutLtd

81

131





Insolvency 310

Mat,MaryandNorm

82

132

(A)



311

Administration

83

133





312

Liverton

84

133





313

BrassickLtd

84

134





314

WinstonLtd

85

134





315

Michael

86

135





316

HurstLtd

87

136





317

SamiLtd

87

136





318

ParkLtd

88

137





319

StrineLtd

89

137





Corporatefraudulentandcriminalbehaviour 320

Ken

90

138

(A)



321

SidandVic

91

139

(A)



322

IreLtd

92

140

(A)



323

Bribery

93

140





324

Nit

93

140





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K AP L ANP U B L ISH IN G

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P. 7

EXAMTECHNIQUE 

Donotskipanyofthematerialinthesyllabus.



Readeachquestionverycarefully.



Double‐checkyouranswerbeforecommittingyourselftoit.



Answer every question – if you do not know an answer, you don't lose anything by guessing. Think carefully before you guess. The examiner has indicated that many candidatesarestillleavingblankanswersintherealexam.



If you are answering a multiple‐choice question, eliminate first those answers that you knowarewrong.Thenchoosethemostappropriateanswerfromthosethatareleft.



Don’t panic if you realise you’ve answered a question incorrectly. Getting one question wrongwillnotmeanthedifferencebetweenpassingandfailing

Computer‐basedexams–tips 



DonotattemptaCBEuntilyouhavecompletedallstudymaterialrelatingtoit. OntheACCAwebsitethereisaCBEdemonstration.ItisESSENTIALthatyouattemptthisbefore yourrealCBE.YouwillbecomefamiliarwithhowtomovearoundtheCBEscreensandtheway thatquestionsareformatted,increasingyourconfidenceandspeedintheactualexam.



Besureyouunderstandhowtousethesoftwarebeforeyoustarttheexam.Ifindoubt,ask theassessmentcentrestafftoexplainittoyou.



Questions are displayed on the screen and answers are entered using keyboard and mouse. At the end of the exam, you are given a certificate showing the result you have achieved.  

P. 8

K AP L ANP U B L ISH IN G

PAPERSPECIFICINFORMATION THEEXAM FORMATOFTHECOMPUTER‐BASEDEXAM   45compulsorymultiple‐choicequestions(1or2markseach) 5multi‐taskquestions(6markseach)  Totaltimeallowed:2hours

Numberofmarks 70 30



 

The examinations contain100%compulsory questionsandstudentsmuststudyacrossthe breadthofthesyllabustoprepareeffectivelyfortheexamination



The examinationwill be assessed by atwohourcomputer‐basedexamination.Youshould refertotheACCAwebsiteforinformationregardingtheavailabilityofthecomputer‐based examination.

PASSMARK ThepassmarkforallACCAQualificationexaminationpapersis50%. 

DETAILEDSYLLABUS ThedetailedsyllabusandstudyguidewrittenbytheACCAcanbefoundat: www.accaglobal.com/students/  

K AP L ANP U B L ISH IN G

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P. 9

KAPLAN’S RECOMMENDED REVISION APPROACH QUESTIONPRACTICEISTHEKEYTOSUCCESS Success in professional examinations relies upon you acquiring a firm grasp of the required knowledgeatthetuitionphase.Inordertobeabletodothequestions,knowledgeisessential. However,thedifferencebetweensuccessandfailureoftenhingesonyourexamtechniqueonthe dayandmakingthemostoftherevisionphaseofyourstudies. The Kaplan Study Text isthestartingpoint,designedtoprovidetheunderpinningknowledge to tackleallquestions.However,intherevisionphase,pouringovertextbooksisnottheanswer. Kaplanonlineprogresstestshelpyouconsolidateyourknowledgeandunderstandingandarea usefultooltocheckwhetheryoucanrememberkeytopicareas. KaplanPocketNotesaredesignedtohelpyouquicklyreviseatopicarea,howeveryouthenneed to practice questions.  There is a need to progress to full exam standard questions as soon as possible,andtotieyourexamtechniqueandtechnicalknowledgetogether. Theimportanceofquestionpracticecannotbeover‐emphasised. Therecommendedapproachbelow is designedby experttutors inthefield, inconjunctionwith theirknowledgeoftheexaminer. Theapproachtakenforthefundamentalpapersistorevisebytopicarea. Youneedtopracticeasmanyquestionsaspossibleinthetimeyouhaveleft.

OURAIM Ouraimistogetyoutothestagewhereyoucanattemptexamstandardquestionsconfidently,to time, in a closed book environment, with no supplementary help (i.e. to simulate the real examinationexperience). Practising your exam technique on real past examination questions, in timed conditions, is also vitally important for you to assess your progress and identify areas of weakness that may need moreattentioninthefinalrunuptotheexamination. Theapproachbelowshowsyouwhichquestionsyoushouldusetobuildup tocopingwithexam standard question practice, and references to the sources of information available should you needtorevisitatopicareainmoredetail. Rememberthatintherealexamination,allyouhavetodois: 

attemptallquestionsrequiredbytheexam



onlyspendtheallottedtimeoneachquestion,and



getthematleast50%right!

Tryandpracticethisapproachoneveryquestionyouattemptfromnowtotherealexam.

P. 10

K AP L ANP U B L ISH IN G

THE KAPLAN CORPORATE AND BUSINESS LAWREVISIONPLAN 

Stage1:Assessareasofstrengthsandweaknesses                               

ReviewthetopiclistingsinthequestionindexonpageP.5

Determinewhetherornottheareaisonewithwhichyouarecomfortable

Comfortable withthetechnicalcontent

Notcomfortable withthetechnicalcontent

Readtherelevantchapter(s)in Kaplan’sStudyText  Attemptthe‘testyourunderstanding’ examplesifunsureofanarea  Attemptappropriateonline progresstests

ReviewthePocketNotesonthisarea

Stage2:Practicequestions Ensurethatyoureviseallsyllabusareasasquestionscouldbeaskedonanything. Try to avoid referring to text books and notes and the model answer until you have completed yourattempt. Trytoanswerthequestioninthe allottedtime. Reviewyourattemptwiththemodelanswer.Ifyougottheanswerwrong,canyouseewhy?Was theproblemalackofknowledgeorafailuretounderstandthequestionfully?

K AP L ANP U B L ISH IN G

P. 11

Fillintheself‐assessmentboxbelowanddecideonyourbestcourseofaction.    Comfortablewithquestionattempt Notcomfortablewithquestionattempts       Focusontheseareasby:   Reworkingtestyourunderstanding  examplesinKaplan’sStudyText   Revisitingthetechnicalcontentfrom  Kaplan’sPocketNotes   Workinganyremainingquestionson  Onlyrevisitwhencomfortablewith thatareaintheExamKit  questionsonalltopicareas   

Stage3:Finalpre‐examrevision Werecommendthatyouattempt atleastone twohourmockexaminationcontainingasetof previouslyunseenexamstandardquestions. Itisimportant that you geta feel forthe breadth of coverageof a real exam withoutadvanced knowledgeofthetopicareascovered–justasyouwillexpecttoseeontherealexamday. Ideallythismockshouldbesatintimed,closedbook,realexamconditionsandcouldbe: 

amockexaminationofferedbyyourtuitionprovider,and/or



thepilotpaperinthebackofthisExamKit

P. 12

K AP L ANP U B L ISH IN G

Section1

OBJECTIVETESTQUESTIONS

ESSENTIALELEMENTSOFTHELEGALSYSTEM 1

2

3

4

5

WhichofthefollowingTWOstatementsregarding‘commonlaw’areNOTcorrect? A

Itisthebodyoflawasmadebyjudgesthroughthedeterminationofcases

B

ItislawcreatedbyParliament

C

ItisthesystemoflawthatemergedfollowingtheNormanConquestin1066

D

Intheeventofconflictwithequitythecommonlawwillprevail

(2marks)

WhichofthefollowingisNOTatracktowhichac...