ACF4(ENG)EFM(J)14 MOCK 1 Questions

ACCA
Paper F4
Corporate and Business Law
(United Kingdom)
Final Mock
Question Paper
Time allowed
Reading and planning: 15 minutes
Writing: 3 hours
All questions are compulsory and MUST be attempted

Instructions:
Take a few moments to review the notes on the inside of this page titled, Get into good exam habits now! before
attempting this exam.
DO NOT OPEN THIS PAPER UNTIL YOU ARE READY TO START UNDER
EXAMINATION CONDITIONS
2 ACF4(ENG)EFM(J)14 MOCK 1 Questions
Get into good exam habits now!
Take a moment to focus on the right approach for this exam.
Effective time management
Watch the clock, allow 1.8 minutes per mark. Work out how long you can spend on each question
and do not exceed that time.
Take a few moments to think what the requirements are asking for and how you are going to
answer them.
Effective planning
This paper is in exactly the same format as the real exam. You should read through the paper and
plan the order in which you will tackle the questions. Always start with the one you feel most
confident about and take time to choose the questions you will answer in sections with a choice.
Read the requirements carefully: focus on mark allocation, question words (see below) and
potential overlap between requirements.
Identify and make sure you pick up the easy marks available in each question.
Effective layout
Present your numerical solutions using the standard layouts you have seen. Show and reference
your workings clearly.
With written elements try and make a number of distinct points using headings and short
paragraphs. You should aim to make a separate point for each mark.
Ensure that you explain the points you are making ie why is the point a strength, criticism or
opportunity?
Give yourself plenty of space to add extra lines as necessary, it will also make it easier for the
examiner to mark.
Common terminology
Identify List relevant points
Discuss Explain the opposing arguments
Describe Present the characteristics of
Summarise State briefly the essential points
Recommend Present information to enable the recipient to take action
Analyse Determine and explain the constituent parts of
Explain Set out in detail the meaning of
Illustrate Use an example to explain something
Appraise/assess/
evaluate Judge the importance or value of
ACF4(ENG)EFM(J)14 MOCK 1 Questions 3
All TEN questions are compulsory
1 Legislation
(a) Describe delegated legislation in its various forms. (6 marks)
(b) Explain how delegated legislation is controlled. (4 marks)
(Total: 10 marks)
2 Acceptance
Describe the rules applying to the acceptance of an offer in the law of contract. (10 marks)
3 Liquidation
(a) Explain what is meant by liquidation in company law. (2 marks)
(b) Describe the differences between creditors and members voluntary liquidations. (8 marks)
(Total: 10 marks)
4 Authority of Agents
Explain how an agent could act without express authority and bind his principal to a contract. (10 marks)
5 Company registration
Give an account of the legal procedure that must be followed in order to effect the registration of a new
public limited company which is entitled to trade. (10 marks)
6 Company names
(a) Describe the legal restrictions on the choice of corporate name. (5 marks)
(b) Explain the legal duties of promoters and in particular their responsibilities where they sell
property of their own to the company they are promoting. (5 marks)
(Total: 10 marks)
7 Insider dealing
Describe what constitutes the offence of insider dealing and the defences that may be put forward by a
person charged with insider dealing. (10 marks)
4 ACF4(ENG)EFM(J)14 MOCK 1 Questions
8 Employment law
Idris has been continuously employed as a production line supervisor for four years by Hellfirm Ltd. For
the last year there have been problems between Idris and his manager Jacob. Last week Idris and Jacob
had a major argument in the factory after Idris refused Jacobs instruction to remove safety shields from
some complex machinery so the production line could move faster. The argument ended with Jacob
sending Idris home. When Idris reported for work the next day he was prevented from entering the
factory. He has now received a letter terminating his employment with immediate effect.
Advise Idris. (10 marks)
9 Auditor's liability
Abaca plcs auditor Brimful & Co provided an audit opinion regarding the financial statements for the year
ended 31 December 20X0 that stated they showed a true and fair view and complied with all relevant
provisions of the Companies Acts. The companys annual report was published on 15 April 20X1 and on
30 April 20X1 Clarissa bought 20,000 1 shares in Abaca plc for 16,000. The shares were 80p paid up.
On 31 July 20X1 a newspaper reported that Abaca plc was entering compulsory liquidation on the
grounds that it is unable to pay its debts, having discovered that inventory at the year end was overvalued
by 20 million.
Advise Brimful & Co and Clarissa as to their potential liability. (10 marks)
10 Debentures
Stanford Ltd borrowed 100,000 on 1 June 20X0 from Usha, to whom it gave a floating charge. This was
registered on 6 June 20X0. On 2 June 20X0 the company borrowed 500,000 from Prince Bank plc
secured by a fixed charge on Stanford Ltds land and buildings, which was registered on 4 June 20X0. On
3 June 20X0 it borrowed 200,000 from Frank secured by a floating charge, which was registered on
5 June 20X0. On 31 December 20X2 Stanford Ltd went into insolvent liquidation. The liquidator has
stated that there will not be enough cash to pay all the companys secured creditors.
Requirements
(a) Describe and distinguish between floating and fixed charges. (4 marks)
(b) Explain the need to register such charges. (2 marks)
(c) Explain the order in which Stanford Ltds secured creditors will be paid. (2 marks)
(d) Briefly explain how the inclusion of a negative pledge clause in the charge document can help to
protect a holder of a floating charge. (2 marks)
(Total: 10 marks)


ACF4(ENG)EFM(J)14 MOCK 1 Questions 5
Student self assessment
Having completed this paper take a few minutes to consider what you did well and what you found difficult. Use
this as a basis to focus your future study on effectively improving your performance.
Common problems Future emphasis if you answer Yes
Timing and planning
Did you finish too early? Y/N Focus your planning time on generating more ideas.
Use models to help develop width to your thinking.
Did you overrun? Y/N Focus on allocating your time better.
Practise questions under strict timed conditions.
If you get behind leave space and move on.
Did you waffle? Y/N Focus your planning time on developing a logical structure to
your answer.
Layout
Was your answer difficult to follow? Y/N Use headings and subheadings.
Use numbering sequences when identifying points.
Leave space between each point.
Did you fail to explain each point? Y/N Show why the point identified answers the question set.
Were some of your workings unclear? Y/N Give yourself time and space to make the marker's job easy.
Content
Did you struggle with:
Interpreting the questions? Y/N Learn the meaning of question words (inside front cover).
Learn subject jargon (look at Key Terms in your Study Text).
Read questions carefully noting all the parts.
Practise as many questions as possible.
Understanding the subject? Y/N Review your notes/Text.
Work through easier examples first.
Contact a tutor for help.
Remembering the notes/Text? Y/N Quiz yourself constantly as you study. You need to develop your
memory as well as your understanding of a subject.

6 ACF4(ENG)EFM(J)14 MOCK 1 Questions


































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