Business Law and Practice Exam Questions and Answers All Updated 2026 A+ (124 Pages)

Business Law and Practice
Exam Questions and Answers
All Updated 2026 A+ (124
Pages)
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WhenBisBaBgeneralBpartnershipBformedBunderBtheBPartnershipBActB1890?B-
BAnswerBABgeneralBpartnershipBisBformedBwhenBtwoBorBmoreBpeopleBareB'carryingBon
BaBbusinessBinBcommonBwithBaBviewBofBprofit'.



IsBaBgeneralBpartnershipBincorporated?B-
BAnswerBNo,BthisBmeansBaBgeneralBpartnershipBisBnotBaBseparateBlegalBentityBandBthe
BpartnersBhaveBunlimitedBliability.



WhenBisBaBLimitedBLiabilityBPartnershipBformedBunderBtheBLimitedBLiabilityBPartnership
sBActB2000?B-
BAnswerBLLPsBcanBbeBformedBbyBtwoBorBmoreBmembersBcarryingBonBaBlawfulBbusiness
BwithBaBviewBofBprofit.BTheyBareBformedBbyBfilingBaBseriesBofBdocumentsBwithBtheBRe
gistrarBofBCompaniesBatBCompaniesBHouseBandBpayingBtheBapplicableBfee.



WhatBareBtheBkeyBfeaturesBofBaBLimitedBLiabilityBPartnershipBregardingBincorporation,Bl
iability,Bformality,BandBdecisionBmaking?B-
BAnswerBAnBLLPBisBanBincorporatedBbusinessBandBsoBitBisBaBseparateBlegalBentity.BItBof
fersBitsBownersBprotectionBfromBliabilityBforBtheBLLP'sBdebts,BlikeBaBlimitedBcompany.B
However,BtheBLLPBisBrunBwithBtheBinformalityBandBflexibilityBgivenBbyBaBpartnershipBm
eaningBtheyBhaveBfreedomBoverBhowBtheyBmakeBdecisions.

,HowBisBaBLimitedBLiabilityBPartnershipBtaxed?B-
BAnswerBTheBpartnersBareBtaxedBasBifBtheBbusinessBwereBaBpartnershipBratherBthanBaB
company.B



IndividualBmembersBofBtheBLLPBmustBregisterBwithBHMRCBasBself-employed.



WhenBdoesBaBLimitedBLiabilityBPartnershipBlegallyBcomeBintoBexistence?B-
BAnswerBTheBLLPBlegallyBcomesBintoBexistenceBonBtheBdateBofBincorporationBonBtheBc
ertificate.



WhenBcanBtheBcorporateBveilBbeBpierced?B-
BAnswerBFollowingBPrestBvBPetrodel,BtheBSupremeBCourtBdecidedBthatBtheBcorporateBv
eilBcouldBonlyBbeBpiercedBwhenBaBpersonBisBunderBanBexistingBlegalBobligationBorBliab
ilityBorBisBsubjectBtoBanBexistingBlegalBrestrictionBwhichBheBdeliberatelyBevades,BorBwh
oseBenforcementBheBdeliberatelyBfrustrates,BbyBinterposingBaBcompanyBunderBhisBcontr
ol.



WhichBformBofBcompanyBisBtheBmostBheavilyBregulatedBandBwhy?B-
BAnswerBPubliclyBtradedBcompaniesBareBmoreBregulatedBthanBunlistedBpublicBcompanie
sBandBprivateBcompaniesBtoBprotectBtheBpublic,BwhoBcanBeasilyBinvestBinBaBcompanyB
whichBisBlistedBonBtheBstockBmarketBandBareBatBriskBifBtheBcompanyBdoesBnotBperfor
mBwellBfinancially.



WhatBisBaBimportantBadvantageBofBrunningBaBunincorporatedBcompany.B-
BAnswerBThereBareBnoBformalBrequirementsBonceBitBhasBbeenBestablishedB(otherBthanB
tax-
relatedBformalitiesBrequiredBbyBHMRC),BandBnoBlegalBdocumentsBhaveBtoBbeBprepared
BwhichBsavesBtimeBandBmoney.B



However,BthisBlackBofBformalityBmayBalsoBbeBaBdisadvantageBasBitBisBpossibleBtoBrunB
aBbusinessBasBaBsoleBtraderBorBpartnershipBwithoutBtheBownerBorBownersBevenBrealisi
ngBwhichBbusinessBmediumBtheyBareBusing.

,HowBdoByouBincorporateBaBnewBcompany?B-
BAnswerBToBincorporateBaBnewBcompany,BtheBapplicantBmustBcompleteBCompaniesBHo
useBformBIN01BandBsubmitBit,BalongBwithBaBdocumentBcalledBaBmemorandumBofBasso
ciation,BandBpossiblyBtheBcompany'sBarticlesBofBassociation,BtoBCompaniesBHouseBwith
BtheBapplicableBfee.



WhichBfactorsBinfluenceBtheBfeeBpayableBtoBCompaniesBHouseBuponBincorporation?B-
BAnswerBTheBamountBofBtheBfeeBwillBdependBonBtheBapplicationBmethodB(electronicBo
rBpost)BandBwhetherBtheBapplicantBhasBrequestedBaBsame-
dayBserviceB(whichBisBonlyBavailableBbyBpostBorBusingBauthorisedBsoftware).BABsame-
dayBserviceBincursBaBhigherBfee.



WhenBdoesBaBcompanyBlegallyBcomeBintoBexistence?B-
BAnswerBTheBcompanyBcomesBintoBexistenceBuponBtheBcertificateBofBincorporationBbei
ngBissuedB(ssB15(4)BandB16(2)BCAB2006).



WhatBisBaBtaxBbenefitBofBusingBanBelectronicBapplicationBinBtheBprocessBofBincorporati
on?B-
BAnswerBCompaniesBformedBfollowingBanBonlineBapplicationBwillBbeBregisteredBforBcorp
orationBtaxBautomatically,BbutBifBtheBapplicationBwasBmadeBbyBpost,BusingBaBformation
BagentBorBusingBthirdBpartyBsoftware,BtheBapplicantBwillBhaveBtoBmakeBaBseparateBap
plicationBtoBHMRC,BwithinBthreeBmonthsBofBstartingBtoBdoBbusiness,BforBtheBcompany
BtoBbeBregisteredBforBcorporationBtax.



MustBaBtradingBnameBbeBregisteredBonBformBIN01?B-
BAnswerBNo.BUnlikeBcompanyBnames,BthereBisBnoBneedBtoBregisterBbusiness/tradingBna
mes.



WhatBisBaBcompany'sBregisteredBoffice?B-
BAnswerBTheBcompanyBwillBneedBaBregisteredBofficeB(sB86BCAB2006)BandBwillBneedBto
BinsertBtheBaddressBofBtheBregisteredBofficeBonBtheBIN01.BTheBregisteredBofficeBwillBb
eBtheBaddressBtoBwhichBcorrespondenceBfromBCompaniesBHouseBwillBbeBsent,BandBals
oBanyBofficialBdocumentsBsuchBasBcourtBdocuments.

, HowBdoByouBchangeBaBcompany'sBregisteredBoffice?B-
BAnswerBABboardBresolutionBisBrequiredBtoBchangeBtheBcompany'sBregisteredBofficeB(sB
87BCAB2006),BandBtheBcompanyBmustBfileBformBAD01BatBCompaniesBHouse.BTheBchan
geBofBregisteredBofficeBaddressBtakesBplaceBwhenBtheBregistrarBchangesBit,BbutBdocum
entsB(including,BforBexample,BlettersBofBclaim)BcanBstillBbeBsentBtoBtheBpreviousBregist
eredBofficeBforB14BdaysBafterBtheBchangeBandBtheyBwillBbeBdeemedBtoBhaveBbeenBse
ntBtoBtheBregisteredBoffice.



HowBmanyBdirectorsBmustBaBcompanyBhave?B-
BAnswerBEveryBcompanyBmustBhaveBatBleastBoneBdirectorBlistedBonBtheBIN01BandBpubl
icBcompaniesBmustBhaveBtwoBorBmoreB(sB154BCAB2006).



WhatBisBtheBminimumBnumberBofBdirectorsBaBprivateBlimitedBcompanyBmustBhave?B-
BAnswerBOne.



WhatBisBtheBminimumBnumberBofBdirectorsBaBpublicBlimitedBcompanyBmustBhave?B-
BAnswerBTwo.



WhatBisBaBcompanyBsecretary?B-
BAnswerBPrivateBcompaniesBdoBnotBhaveBtoBhaveBaBcompanyBsecretary,BbutBmayBchoo
seBtoBhaveBoneBandBtheyBmustBbeBnamedBonBtheBIN01.B



TheBcompanyBsecretaryBwillBbeBresponsibleBforBadministrativeBtasksBsuchBasBfilingBdoc
umentsBatBCompaniesBHouseBandBkeepingBboardBminutes.BTheBcompanyBsecretaryBcan
BalsoBbeBaBdirectorBbutBthusBdoesBnotBmeanBthatBdirectorsBhaveBrelinquishedBrespons
ibilityBinBanyBway:BtheyBareBstillBliableBifBtheBcompanyBsecretaryBfailsBtoBcarryBoutBhis
BorBherBduties.



CanBaBcompanyBbeBincorporatedBwithBonlyBoneBshareholder?B-
BAnswerBYes,BtheBcompany'sBfirstBshareholdersBareBcalledBtheBsubscribers,BandBtheyBne
edBtoBbeBenteredBonBtheBIN01.BThereBisBnoBmaximumBnumberBofBshareholders.



WhatBisBtheBnominalBvalueBofBaBshare?B-
BAnswerBTheBamountBoriginallyBpaidBforBthem.