Corporate and Business Law (LW: English)
150 questions mapped to the official ACCA LW-ENG syllabus (S26-A27). Covers the English legal system, the law of obligations (contract and tort), employment law, the formation and constitution of companies, capital and financing, company management, insolvency, and corporate fraudulent and criminal behaviour. Filter by section, work at your own pace, see explanations for every answer, or switch to Exam Sim mode for a timed LW mock exam under real exam conditions.
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The LW exam format
2 hours, 100 marks in total. All questions are compulsory. The pass mark is 50%.
| Section A | 25 objective test questions worth 2 marks each, plus 20 worth 1 mark | 70 marks |
|---|---|---|
| Section B | 5 multi-task questions worth 6 marks each | 30 marks |
Source: the official ACCA syllabus and study guide for this paper. Always check the current version on the ACCA website before you sit.
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Sample LW questions
Three questions from this bank, each with its answer and worked explanation. The quiz above draws from all 150.
Which of the following sets out the essential elements required to form a simple, legally binding contract?
- Offer, acceptance, consideration and intention to create legal relations
- Offer, acceptance and a written, signed document in every case
- Agreement and payment of a deposit
- A meeting of the parties in person and a witness
Show answer and explanation
Answer: A. A simple contract requires offer, acceptance, consideration and an intention to create legal relations (with capacity also assumed). Option B is wrong — most simple contracts need not be in writing; writing is required only for certain contracts such as those for the sale of land. Option C omits acceptance, intention and offer. Option D invents formalities that the law does not generally require for a simple contract.
Which of the following best describes the role of an agent?
- A person who buys goods only for their own personal use
- A person who works purely as an employee with no authority to act
- A person authorised to act on behalf of another (the principal) so as to affect the principal's legal relations with third parties
- A person who personally owns the whole of the business outright
Show answer and explanation
Answer: C. An agent is a person authorised to act on behalf of a principal, creating or affecting legal relations between the principal and third parties; company directors and partners are common examples. Option A describes a consumer. Option B contradicts the essence of agency, which is acting with authority. Option D describes a sole proprietor, not an agent.
How are directors of a company usually appointed after incorporation?
- By the Registrar of Companies
- By the company's external auditors at the year end
- By the company's members, typically by ordinary resolution, or as provided in the articles
- By the company's largest creditor
Show answer and explanation
Answer: C. After the first directors named on incorporation, directors are usually appointed by the members (commonly by ordinary resolution) or in accordance with the procedure in the articles, which may also permit the board to appoint additional directors. Option A is wrong — the Registrar records but does not appoint directors. Options B and D are wrong — auditors and creditors have no power to appoint directors.
About this question bank
150 questions across 8 syllabus sections, each mapped to a reference in the official ACCA syllabus for LW and each with a worked explanation. All 150 are multiple choice.
- Written to the ACCA syllabus and study guide for exams from September 2026 to August 2027.
- Spotted a mistake? Report it and it will be corrected.
| Syllabus section | Questions |
|---|---|
| A: Legal system | 12 |
| B: Obligations (contract & tort) | 34 |
| C: Employment | 16 |
| D: Business organisations | 24 |
| E: Capital & financing | 18 |
| F: Management & administration | 22 |
| G: Insolvency | 9 |
| H: Fraud & criminal behaviour | 15 |