You’re on a roll
Create a free account to save your ACCA progress, track your accuracy by topic, and pick up right where you left off.
Free Questions › ACCA › Corporate and Business Law
Free ACCA Corporate and Business Law Practice Questions & Answers
400 exam-style Corporate and Business Law questions. Pick your answer, hit Check answer, and see the worked solution — free to start, no signup.
100% free · No login to startQuestion 301
Bribery under the Bribery Act 2010 can be committed by:
Select an option first.
Correct answer: B — Any person who offers, gives, requests or receives a financial or other advantage to induce or reward improper conduct
Explanation: Bribery Act 2010: any person (individual or company) can commit the main bribery offences.
Question 302
The corporate offence of 'failure to prevent bribery' under the Bribery Act 2010:
Select an option first.
Correct answer: B — Is committed by a commercial organisation if a person associated with it bribes another to obtain or retain business, unless the organisation had adequate prevention procedures
Explanation: s.7 Bribery Act 2010: strict corporate offence; defence is adequate prevention procedures.
Question 303
Wrongful trading under the Insolvency Act 1986 occurs when:
Select an option first.
Correct answer: B — A director continues to allow the company to trade when they knew or ought to have known there was no reasonable prospect of avoiding insolvent liquidation, and fails to minimise potential loss to creditors
Explanation: s.214 IA 1986: wrongful trading – objective test; director fails to minimise creditor losses when insolvency was inevitable.
Question 304
Fraudulent trading under the Insolvency Act 1986 requires:
Select an option first.
Correct answer: B — Intent to defraud creditors or any other person
Explanation: s.213 IA 1986: fraudulent trading requires actual dishonest intent to defraud creditors.
Question 305
The 'prescribed part' in insolvency law refers to:
Select an option first.
Correct answer: B — A portion of assets realised from floating charges that is ring-fenced for unsecured creditors
Explanation: s.176A IA 1986: portion of floating charge realisations ring-fenced for unsecured creditors.
Get the full ACCA question bank — free
Drop your email and we'll send you fresh ACCA practice questions, fully worked solutions and exam-deadline reminders. No spam — unsubscribe in one click.
Want to save your score and take a full mock exam? Create a free account →
Question 306
Which of the following is NOT a stage in the money laundering process?
Select an option first.
Correct answer: D — Litigation
Explanation: Three stages: Placement, Layering, Integration. Litigation is a legal process, not a money laundering stage.
Question 307
Under the Proceeds of Crime Act 2002, a person commits a money laundering offence if they:
Select an option first.
Correct answer: B — Knowingly assist in concealing, arranging or acquiring criminal property
Explanation: POCA 2002: offence to conceal, arrange or acquire criminal property knowing or suspecting it is criminal.
Question 308
The 'tipping off' offence under anti-money laundering legislation means:
Select an option first.
Correct answer: B — Disclosing to a suspected money launderer that a Suspicious Activity Report has been filed, which could prejudice an investigation
Explanation: Tipping off (s.333A POCA 2002): disclosing a SAR or investigation in a way that could prejudice it.
Question 309
Insider dealing is a criminal offence under which piece of UK legislation?
Select an option first.
Correct answer: C — The Criminal Justice Act 1993
Explanation: Insider dealing: criminal offence under Part V of the Criminal Justice Act 1993.
Question 310
A 'Suspicious Activity Report' (SAR) must be submitted when a firm in the regulated sector:
Select an option first.
Correct answer: B — Knows or suspects that a person is engaged in money laundering or terrorist financing
Explanation: SAR duty: triggered by actual knowledge or suspicion of money laundering or terrorist financing.
Question 311
A director who continues trading when they knew insolvency was unavoidable faces which primary civil remedy under s.214 IA 1986?
Select an option first.
Correct answer: C — An order to make a financial contribution to the company's assets
Explanation: s.214 IA 1986: court can order director to contribute to company's assets (wrongful trading).
Question 312
The 'failure to prevent fraud' offence under the Economic Crime and Corporate Transparency Act 2023 applies to:
Select an option first.
Correct answer: B — Large organisations where a person associated with the organisation commits fraud for its benefit and the organisation had no reasonable fraud prevention procedures
Explanation: ECCTA 2023: large organisations (meeting size thresholds) with no adequate fraud prevention procedures.
Question 313
In an administration, the hierarchy of objectives is:
Select an option first.
Correct answer: A — First rescue the company; if not possible, achieve a better result than winding up; if not, realise assets for secured or preferential creditors
Explanation: Sch B1 IA 1986: (1) rescue as going concern; (2) better result than liquidation; (3) realise assets for secured/preferential creditors.
Question 314
The 'net asset test' for public company dividends (s.831 CA 2006) requires that:
Select an option first.
Correct answer: B — After the dividend, the company's net assets must not be less than its called-up share capital plus non-distributable reserves
Explanation: s.831 CA 2006: after distribution, net assets must not fall below called-up capital + non-distributable reserves.
Question 315
A 'debenture trust deed' benefits debenture holders primarily because:
Select an option first.
Correct answer: B — A trustee acts on behalf of all debenture holders collectively, enforcing security when needed without requiring individual action
Explanation: Debenture trust deed: trustee acts collectively for all bondholders; efficient enforcement mechanism.
Question 316
The liquidator's power to challenge pre-insolvency transactions is designed to:
Select an option first.
Correct answer: B — Claw back transactions such as preferences and transactions at undervalue to protect the pool of assets available to creditors
Explanation: Anti-avoidance: s.238 (undervalue) and s.239 (preference) IA 1986 allow claw-back of pre-insolvency transactions.
Question 317
A 'preference' under s.239 Insolvency Act 1986 occurs when:
Select an option first.
Correct answer: B — The company, when insolvent, puts a creditor in a better position than they would have been in a liquidation, influenced by a desire to do so
Explanation: s.239 IA 1986: preference – insolvent company influenced by desire to prefer a creditor.
Question 318
A 'transaction at undervalue' under s.238 Insolvency Act 1986 occurs when:
Select an option first.
Correct answer: B — Within 2 years of insolvency, the company transfers an asset for significantly less than market value (or for no consideration)
Explanation: s.238 IA 1986: asset transferred for significantly less than value within 2 years of insolvency.
Question 319
The 'anti-deprivation rule' in insolvency law prevents:
Select an option first.
Correct answer: B — Contractual provisions that would transfer a valuable asset away from the company on insolvency, defeating the statutory order of distribution
Explanation: Anti-deprivation rule: prevents contractual stripping of assets on insolvency.
Question 320
Under CA 2006, the PSC register must record persons who:
Select an option first.
Correct answer: B — Hold more than 25% of shares or voting rights, or otherwise exercise significant influence or control
Explanation: PSC regime: more than 25% shares/voting rights or significant influence/control.
Question 321
The 'pari passu' principle in insolvency means that:
Select an option first.
Correct answer: B — Unsecured creditors of the same class share rateably in the company's available assets
Explanation: Pari passu: unsecured creditors of the same class share proportionally in available assets.
Question 322
Failure to register a company charge at Companies House within 21 days makes it:
Select an option first.
Correct answer: B — Void against a liquidator, administrator and any creditor of the company
Explanation: s.859H CA 2006: unregistered charge void against liquidator, administrator and creditors; debt immediately repayable.
Question 323
For a preference to a 'connected person' under s.239 IA 1986, the look-back period is:
Select an option first.
Correct answer: C — 2 years
Explanation: s.239 IA 1986: 2 years look-back for connected persons (vs. 6 months for unconnected creditors).
Question 324
In an administration, the moratorium on legal proceedings means secured creditors:
Select an option first.
Correct answer: B — Cannot enforce their security without the administrator's consent or court permission
Explanation: Para 43 Sch B1 IA 1986: moratorium prevents enforcement of security without administrator's consent or court leave.
Question 325
A public company must have a minimum allotted share capital of:
Select an option first.
Correct answer: C — £50,000
Explanation: s.761 CA 2006: public company minimum allotted share capital of £50,000 before trading.
Question 326
Shares in a public company allotted to subscribers must have at least what percentage paid up at allotment?
Select an option first.
Correct answer: D — 25%
Explanation: s.586 CA 2006: at least 25% of nominal value (plus all of any premium) must be paid up at allotment.
Question 327
A company's 'distributable reserves' are calculated as:
Select an option first.
Correct answer: B — Accumulated realised profits minus accumulated realised losses
Explanation: s.830 CA 2006: distributable profits = accumulated realised profits less accumulated realised losses.
Question 328
In a members' voluntary liquidation, the liquidator's primary role is to:
Select an option first.
Correct answer: B — Wind up the company's affairs, realising assets, paying debts, and returning any surplus to shareholders
Explanation: MVL: liquidator realises assets, pays all debts in full (company is solvent), distributes surplus to shareholders.
Question 329
A key advantage of a 'pre-pack administration' is that:
Select an option first.
Correct answer: B — The business is sold quickly, preserving value and jobs with minimal disruption
Explanation: Pre-pack: business arranged for sale before/on administration appointment; speed prevents value erosion.
Question 330
A 'scheme of arrangement' under CA 2006 allows:
Select an option first.
Correct answer: B — A company to agree a compromise with its creditors or shareholders, binding dissenting minority once approved by the requisite majority and sanctioned by the court
Explanation: Scheme of arrangement (Part 26 CA 2006): 75% in value + majority in number + court sanction = binds all.
More free ACCA topics
Management Accounting401
Financial Accounting400
Performance Management400
Financial Reporting400
Financial Management400
Strategic Business Reporting400
Advanced Financial Management400
Advanced Performance Management400
Advanced Taxation400
Business and Technology300
Taxation300
Audit and Assurance300
Strategic Business Leader300
Advanced Audit and Assurance296
Ten questions in
- The ones you miss are saved as a drill you can repeat
- Your place is kept, on this device and any other
- A streak, if that is the thing that gets you back tomorrow
Every question on this page stays free and open either way.