ACCA P4 Final Mock - June 15 - Questions.

ACCA F4 -- MOCK EXAMS – DECEMBER 2010ALL TEN questions are compulsory and MUST be attempted1. Giving suitable examples, explain the difference between the ratio decidendiand obiter dictum of a court judgment.(10 marks)2. (a) Developer A has contracted with Landowner B, under which A would build ahouse on B’s land at a cost of $1 million, completion to be on 1st April 2009.There is a clause in their contract which states as follows:- “If the Developer is late in completion, then he shall pay liquidated damages of $1,000 per day for each day of delay to the Landowner”. Developer A has delayed in the completion by 10 days. Advise Landowner B. (7 marks)(b) What is “mitigation of losses” in the law of contract? (3 marks)(10 marks) 3. Explain what is meant by the “Indoor Management Rule” in Company Law. Pleasealso state one exception to the operation of this Rule. (10 marks)4. In relation to company law, explain the following:-(a) annual general meeting (4 marks)(b) extraordinary general meeting (2 marks)(c) class meeting (4 marks)(10 marks) 5. What are the three elements of the tort of negligence which a plaintiff must prove, inorder to be successful in his suit against the defendant?(10 marks) 6. Explain what is meant by “the veil of incorporation” in company law. Are thereinstances when a court would lift this veil?(10 marks) 7. “To be valid, all acceptances must be actually communicated to the offeror”. Is thisstatement true or not, in the law of contract? Please explain, with reasons.(10marks)8. Twenty men were engaged by the Stars Shipping Company to sail as crew membersof the merchant ship “Evergreen” from Singapore to Hong Kong, then to Shanghai, and back to Singapore. While that ship was docked in Hong Kong, 5 members of the ship’s crew of 20 deserted the ship. Fearing that more crew members may desert the ship, the ship captain promised the remaining 15 members of the crew that he would pay each of them extra wages if they were not to desert the ship during the remainder of their trip. However, when the ship returned to Singapore, the captain broke this promise.Required:-Analyse this scenario from the perspective of contract law, and discuss whether there is a binding contract between Stars Shipping Company and the 15 crew members.(10 marks)9. (a) John was managing director of a company which had recently failed to win avaluable contract. Pretending to have an uncommon disease, he persuaded his company to release him from his employment agreement with the company.Now that he is longer employed as a director by that company, he feels free to try to obtain the contract for himself, which he successfully does. Discuss whether there are any legal issues that arise out of his action. (5 marks)(b) Michael is the Finance Director of a company. He did not examine carefully thefinancial statements relating to his company’s investment in a project which it (the company) was losing money. The financial statements had been wrongly prepared and showed that the company was making a profit on that project when in fact it was making a loss. Therefore, the company continued to invest even more money into the project, and thus incurring even more losses, before the mistake was finally discovered. Is Michael liable in any way? (5 marks)(10 marks) 10. Massive Bank is considering whether to grant to Flimsy Enterprises Pte Ltd anunsecured loan of $300,000 for its operational needs. The Bank has heard some rather negative comments about the company. If, despite that, the Bank still proceeds to grant a bank loan to the Company, and assuming that the Company is subsequently wound up, then how would the Bank’s $300,000 loan rank as against the other creditors of the Company?(10marks)。

ACCA考试P阶段的考试顺序建议本文由高顿ACCA整理发布，转载请注明出处[导读]ACCA每一次考试最多可以报满4科，考试必须按照模块顺序来进行，但是各个模块内部的科目是可以打乱顺序考的，F和P段的课程不能一起考，先考完F阶段再考P阶段，除非F阶段剩下一俩门可以与P阶段同时报考。

ACCA考试P阶段的考试顺序建议ACCA考试一共16个科目，通过14科就可以拿到ACCA准会员证书(最后4科P4-P7是四选二)，这16个科目的考试顺序也是有规定的。

16科目分为四个大模块：知识模块(F1-F3)、技能模块(F4-F9)、核心模块(P1-P3)、选修模块(P4-P7)。

ACCA考试必须按照模块顺序来进行，即知识模块-技能模块-核心模块-选修模块。

必须按照这个顺序来报考，但是各个模块内部的科目是可以打乱顺序考的。

例如：F1-F3，可以先考F3，再考F2，再考F1，后面的依此类推。

当然，ACCA每一次考试最多可以报满4科，那么可以把前面模块的都报上，报完以后还有剩余科目可以给后面模块的再报上后面模块的科目。

例如，可以一次把F1、F2、F3、F4都报上，考试结束后，F4、F3、F2都通过了，F1没通过，那么下次报F678等科目时，必须先把F1报上，如果考完了F4-F9的科目，F1还是没通过，报P阶段时，F1也必须先报上。

就是说前一个模块没有考完的科目，必须在下一次报考下一个模块考试时都带上继续报考，直到通过，后面的依此类推。

特例：想申请英国牛津布鲁克斯大学应用会计学本科学士学位的学生，如果没有英语成绩证明(例如CET-6、雅思6.5等)那么在第二个模块——技能模块中，就必须先通过F4的考试以后才能报考F789(注意必须是通过F4的考试以后)如果F4被免试了，就必须放弃免试，通过考试，才能考F789，否则就失去了申请学位的资格；其他的考试顺序同上所述。

ACCA官方建议：因为ACCA课程的安排都是很合理的，所以还是顺着顺序来考比较好，以免造成不必要的麻烦。

P4阶段的考试可以说是专业知识很强的。

可能有好多小伙伴在这一科上失败过好多回，最终放弃了。

见过的知识点经常出错，很多知识点老是得不到分数。

下面中公财经小编就P4阶段的易错知识点该怎么答，给大家简单介绍一下吧;Question1 – 50分(a) Comparison of the viewpointsof two directors and a discussion of possible synergy benefits易错点：关于directors的观点讨论这一块，有部分的考生只是重复这些directors的观点，并没有进行讨论。

有些考生进一步解释了directors的观点，强调非系统性风险可以降低，但是只有少数考生指出机构投资者本身已经多元化了，因此不需要再进一步多元化。

在synergy benefits这一块的作答相对比较好，但是考生还是需要对识别出的synergies提供更多的解释，而不应该仅仅提到规模经济，也需要进一步解释如何进行应用。

(b) How a combination of realoption methodology and net present value could establish a reliable valuationof companies易错点：作答大多缺乏深度，很少有答案与题目特定案例背景，即制药企业的估值联系起来。

大多数考生只是提到实物期权的价值应该加到NPV计算的价值中，并且给出了一些实物期权的例子，这样只能拿到很少的分数。

很多考生没有进一步讨论NPV方法的局限性以及关于实物期权的评价。

(c) Preparea report that assessed the valuation of the target and combined company andwhether overall the acquisition would be beneficial for the acquiringcompany’sshareholdersi) Calculatethe equity value of the target using free cash flows易错点：很多考生在计算中犯了以下错误：-在FCF的计算中包括了interest;直接用题目中给的tax金额而不是通过PBIT计算tax;没有计算出最终的valueof equity。

Question – Allegro Technologies Co (ATC)Allegro Technologies Co (ATC), a listed company based in Europe, has been involved in manufacturing motor vehicle parts for many years. Although not involved in the production of complicated engine components previously, ATC recently purchased the patent rights for $2m to produce an innovative energy saving engine component which would cut carbon-based emissions from motor vehicles substantially.ATC has spent $5m developing prototypes of the component and undertaking investigative research studies. The research studies came to the conclusion that the component will have a significant commercial potential for a period of five years, after which, newer components would come into the market and the sales revenue from this component would fall to virtually nil. The research studies have also found that in the first two years (the development phase) there will be considerable training and development costs and fewer components will be produced and sold. However, sales revenue is expected to grow rapidly in the following three years (the commercial phase).It is estimated that in the first year, the selling price would be $1,000 per component, the variable costs would be $400 per component and the total direct fixed costs would be $1,500,000. Thereafter, while the selling price is expected to increase by 8% per year, the variable and fixed costs are expected to increase by 5% per year, for the next four years. Training and development costs are expected to be 120% of the variable costs in the first year, 40% in the second year and 10% in each of the following three years.The estimated average number of engine components produced and sold per year is given in Table 1.Year 1 2 3 4 5Units produced and sold 7,500 20,000 50,000 60,000 95,000There is considerable uncertainty as to the exact quantity that could be produced and sold and the estimated standard deviation of units produced and sold is expected to be as much as 30%.Machinery costing $120,000,000 will need to be installed prior to commencement of the component production. ATC has enough space in its factory to manufacture the components and therefore will incur no additional rental costs. Tax allowable depreciation is available on the machinery at 10% straight line basis. It can be assumed that, depending on the written down value, a balancing adjustment will be made at the end of the project, when the machinery is expected to be sold for $40,000,000. ATC makes sufficient profits from its other activities to take advantage of any tax loss relief available from this project.Initially, ATC will require additional working capital for the project of 20% of the first year’s sales revenue. Thereafter every $1 increase in sales revenue will require a 10% increase in working capital.Although this would be a major undertaking for ATC, it is confident that it can raise the finance required for the machinery and the first year’s working capital. The financing will be through a mixture of a rights issue and a bank loan, in the same proportion as the market values of its current equity and debt capital. Any annual increase in working capital after the first year will be financed by internally generated funds.Largo Co, a company based in South-East Asia, has approached ATC with a proposal to produce some of the parts required for the component at highly competitive rates. In exchange, Largo Co would expect ATC to sign a five-year contract giving Largo Co the exclusive production rights for the parts.Staccato Innovations Co (SIC) is a listed company involved in the manufacture of innovative engine components and engines for many years. As the worldwide demand for energy saving products has increased, it has successfully developed and sold products designed to reduce carbon emissions. SIC has offered to buy the production rights of the component and the machinery from ATC for $113,000,000 after the development phase has been completed in two-years’ time.Additional dataATC, Extracts from its latest Statement of Financial Position$mNon-current assets 336Current assets less current liabilities 746% Bank loan 156Share capital 52Reserves 202ATC shares have a face value of $0.50 per share and are currently trading at $3.50 per share. ATC’s beta has been quoted at approximately 1.3 over the past year.SIC, Extracts from its latest Statement of Financial Position$mNon-current assets 417Current assets less current liabilities 1575% Loan notes (2016–2018) 92Share capital 125Reserves 357SIC shares have a face value of $1 per share and are currently trading at $3.00 per share. Its loan notes are trading at $102 per $100. SIC’s beta has been quoted at approximately 1.8 over the past year.Other dataTax rate applicable to ATC and SIC 20%It can be assumed that tax is payable in the same year as the profits on which it is charged.Estimated risk-free rate of return 3%Historic equity market risk premium 6%Required:Prepare a report to the Board of Directors of ATC that:(i) Assesses whether ATC should undertake the project of developing and commercialising the innovative enginecomponent before taking SIC’s offer into consideration. Show all relevant calculations. (13 marks) (ii) Assesses the value of the above project if ATC takes SIC’s offer into consideration. Show all relevant calculations(10 marks) (iii) Discusses the approach taken and the assumptions made for parts (i) and (ii) above. (8 marks) (iv) Discusses possible implications of ATC entering into a contractual agreement with Largo Co. Include in the discussion suggestions of how any negative impact may be reduced. (5 marks) Professional marks for format, structure and presentation of the report. (4 marks)(40 marks)AnswerReport to the ATC Board of DirectorsAssessment of the investment in the engine component projectThis report recommends whether or not ATC would benefit by investing in the engine component project by considering the following alternatives open to it, and explains the approach taken in each case and the assumptions made:– The value of the project without the SIC offer to buy the project on completion of the two-year development phase.– The value of the project after taking into account SIC’s offer.The report also considers the possible implications of the offer made by Largo Co on the project.Approach takenThe approach taken is to estimate the net present value (NPV) of the project based on the given estimates of costs and revenues without the SIC offer (see appendices one and three).This is followed by a revised estimate of the value of the project, after taking into consideration SIC’s offer. This is based on viewing the project as a real option to abandon (put option) the project and using Black-Scholes Option Pricing (BSOP) model to give an estimate of this value (see appendix two).Assumptions made and initial assessmentIn calculating the value of the project, the following assumptions have been made:– Since this is a new venture for ATC but an ongoing business for SIC, an estimate of the project’s risk, as measured by the project’s risk-adjusted beta, is made (appendix three, working W4) using SIC’s business risk (SIC’s asset beta) but ATC’s financial risk (project equity beta). This risk-adjusted beta is used to calculate the cost of equity and then the cost of capital (discount rate) for the project (appendix three, working w4).– As part of the W4 calculation in appendix three, it is assumed that debt is riskless and has a beta of zero.– Unless indicated otherwise, it is assumed that all cash flows occur at the end of the year.– The patent purchase cost and the investigative research costs are past costs, and therefore not part of the calculation of the value of the project, which is based on future cash flows.– The option for ATC is the opportunity to ‘sell’ the project to SIC after two years if the cash flows do not appear to be favourable, hence this is a put option to abandon a project. Since the option is exercised after two years, it can be considered to be a ‘European’ type option and the BSOP model can be applied, together with the put-call parity relationship.Based on the calculations in the appendices, from the cost and revenue estimates provided, the net present value before considering the SIC option is negative at $9,359,000 approximately (appendix one). However after taking into account the value of the put option, the net present value is positive at $8,087,000 approximately (appendix two). Therefore, it would be beneficial for ATC to undertake the project, if it can decide whether to continue with the project or sell it to SIC for $133,000,000 after a period of two years. However, without this option it should not proceed with the project.ATC will not actually obtain the value of the option, however the option value takes into account the volatility or uncertainty of the project. In this case, it indicates that the project is worth pursuing because the volatility may result in increases in future cash flows and the project becomes profitable. On the other hand, the project can be abandoned for $113,000,000 in two years if the likelihood of sufficient future cash flows remains doubtful. The value attached to this choice is $17,446,000 approximately (appendix two). In the meantime, ATC can put into place mechanisms to make the production and sales targets more certain and profitable. Therefore, the time ATC has before it needs to make a decision is reflected in the value of the project by considering real options using the BSOP model.The BSOP model makes several assumptions such as perfect markets, constant interest rates and lognormal distribution of asset prices. It also assumes that volatility can be assessed and stays constant throughout the life of the project, and that the underlying asset can be traded. Neither of these assumptions would necessarily apply to real options. Therefore, the Board needs to treat the value obtained as indicative rather than definitive, and take the assumptions and limitations into consideration before making a final decision. Implications of the Largo Co offer on the value of the projectFrom the above discussion, it is evident that the project has a negative net present value if it is not considered in conjunction with an option to abandon. The abandonment option makes the project viable. However, if ATC enters into a five-year contractual agreement with Largo Co then this may make the two-year offer by SIC to buy the project redundant. There is no guarantee that SIC would continue to ask Largo Co to produce the parts and ATC would not be able to honour the contract and keep the SIC’s offer open at the same time. ATC would need to consider the impact of the cost savings from the agreement with Largo Co against the possible loss of the option. The Board may also wish to consider how binding the contract would be legally, and also consider the negative impact to ATC’s reputation and additional costs if it breaches the contract in future.In order to mitigate the impact of the issue, the Board may wish to approach Largo Co to discuss the terms of the contract and the provision of possible exclusion clauses. The Board may also want to investigate the reasons behind Largo Co’s insistence of a five-year contract and offer alternatives such as asking Largo Co to produce components for other ATC products if this venture should cease. Alternatively the Board may initiate discussions with SIC to consider whether it would be willing to honour the contract should the project be sold to them in two years.In summary, the initial recommendation is that, based on the projected revenue and cost estimates, the project should be pursued if it taken together with SIC’s offer to buy the project after two years. However, on its own it is not worthwhile. The offer by Largo Co may make SIC’s offer invalid initially but the Board should consider alternatives, some of which are suggested above.Net present value calculation (ignoring SIC offer)Year 0 1 2 3 4 5 $’000Sales revenue (w1) 7,500 21,600 58,300 75,540 129,200 Less:Variable costs (w2) 3,000 8,400 22,050 27,780 46,170 Fixed costs 1,500 1,575 1,654 1,736 1,823 Training and development 3,600 3,360 2,205 2,778 4,617 Cash flows before tax (600) 8,265 32,391 43,246 75,590 Taxation (w3) 2,520 747 (4,078) (6,249) (8,718) Working capital (1,500) (1,410) (3,670) (1,724) (5,366) 13,670 Machinery (120,000) 40,000 Net cash flows (121,500) 510 5,342 26,589 31,631 120,542 Present values (12%, w4) (121,500) 455 4,259 18,926 20,102 68,399 Net present value is approximately $(9,359,000)Appendix 2Value of put option (incorporating the offer from SIC)Present value of underlying asset (Pa) = $107,427,000 (approximately)(This is the sum of the present values of the cash flows foregone in years 3, 4 and 5)Price offered by Largo Co (Pe) = $113,000,000Risk-free rate of interest (r) = 3%Volatility of underlying asset (s) = 30%Time to expiry of option (t) = 2 yearsd1 = [ln(107,427,000/113,000,000) + (0.03 + 0.5 x 0.32) x 2] / [0.3 x 2½] = 0.234d2 = 0.234 – 0.3x21/2 = -0.190N(d1) = 0.5 + 0.0925 = 0.5925N(d2) = 0.5 – 0.0753 = 0.4247Call value = $107,427,000x0.5925 – $113,000,000x0.4247xe–0.03x2 = approx. $18,454,000Put value = $18,454,000 – $107,427,000 + $113,000,000xe–0.03x2 = approx. $17,446,000Net present value with put option = $17,446,000 – $9,359,000 = approx. $8,087,000Appendix 3Workings to support the net present value calculation (Appendix 1)W1Year 1 2 3 4 5Units produced and sold 7,500 20,000 50,000 60,000 95,000Unit price ($) 1,000 1,080 1,166 1,259 1,360Sales revenue ($’000) 7,500 21,600 58,300 75,540 129,200W2Year 1 2 3 4 5Units produced and sold 7,500 20,000 50,000 60,000 95,000Unit variable costs ($) 400 420 441 463 486Variable costs ($’000) 3,000 8,400 22,050 27,780 46,170W3Year 1 2 3 4 5Cash flows before tax ($’000) (600) 8,265 32,391 43,246 75,590Tax allawable dep’n ($’000) (12,000) (12,000) (12,000) (12,000) (32,000)Tax able flows ($’000) (12,600) (3,735) 20,391 31,246 43,590Taxation (20%) ($’000) (2,520) (747) 4,078 6,249 8,718W4Asset beta of project = 1.8 x (3 x 125)/(3 x 125 + 92 x 1.02 x 0.8) = 1.50Equity beta: project beta adjusted for financial risk of ATC = 1.5 x (3.5 x 104 + 156 x 0.8)/(3.5 x 104) = 2.014Cost of euqity = 3& + 2.014 x 6% = 15.08%WACC (discount rate) = (15.08% x 364 + 6% x 0.8 x 156)/520 = 11.996% approx. 12%.Marking schemeMark(s) Part (i) NPV calculationCalculation of project equity beta 1 Calculation of discount rate as a result 1 Sales revenue 2 Variable costs 2 Fixed overheads 1 Training and development 1 Taxation 2 Working capital required 2 Present values and NPV 1 Total part (i) 13Part (ii) Option CalculationIdentify correct asset value 1 Identify correct time to expiry 1 Identify other variables: exercise price, interest rate and volatility 1 d1 2 N(d1) 1 d2 and N(d2) 1 Call value 1 Put value 1 NPV with option value 1 Total part (ii) 10Part (iii) DiscussionIdentify put option correctly 1 Discussing how real options can help with NPV decisions 2–3 Discussion of the limitations of real options 2–3 Discussion of other assumptions and approach 2–3 Max part (iii) 8Part (iv)Discussing the difficulty with exercising the option if contract agreed 2–3 Reducing negative impact 2–3 Max part (iv) 5Professional marks (neatness and clarity, structure, report format) 4Note: Credit will be given for alternative, valid points which are not in the solution for parts (iii) and (iv)。

2020年3月ACCA考试P4高级财务管理真题(总分：100.00，做题时间：195分钟)一、案例分析题(总题数：0，分数：0.00)二、Section A(总题数：1，分数：50.00)IntroductionWestparley Co is a listed retailer, mainly selling food and small household goods. It has outperformed its competitors over the last few years as a result of providing high quality products at reasonable prices, and also having a stronger presence online. It has kept a control on costs, partly by avoiding operating large stores on expensive city centre sites. Instead, it has had smaller stores on the edge of cities and towns, and a limited number of larger stores on convenient out-of-town sites, aiming at customers who want their journeys to shops to be quick. One of its advertising slogans has been: ‘We are where you want us to be.’Westparley Co’s share price has recently performed better than most companies in the retail sector generally. Share prices in the retail sector have been relatively low as a result of poor results due to high competition, large fixed cost base and high interest rates. The exception has been shares in retailers specialising in computer and high-technology goods. These shares appear to have benefited from a boom generally in share prices of high-technology companies. Some analysts believe share prices of many companies in the high-technology sector are significantly higher than a rational analysis of their future prospects would indicate.Matravers CoWestparley Co has identified the listed retailer Matravers Co as an acquisition target, because it believes that MatraversCo’s shares are currently undervalued and part of Matravers Co’s operations would be a good strategic fit for Westparley Co.Matravers Co operates two types of store:Matravers Home mainly sells larger household items and home furnishings. These types of retailer have performed particularly badly recently and one major competitor of Matravers Home has just gone out of business. Matravers Home operates a number of city centre sites but has a much higher proportion of out-of-town sites than its competitors. Matravers Tech sells computers and mobile phones in much smaller outlets than those of Matravers Home.Extracts from Matravers Co’s latest annual report are given below:The share of pre-tax profit between Matravers Home and Matravers Tech was 80:20.The current market value of Matravers Co’s shares is $12,500m and its debt is currently trading at its book value. Westparley Co believes that it will have to pay a premium of 15% to Matravers Co’s shareholders to buy the company.Westparley Co intends to take advantage of the current values attributed to businesses such as Matravers Tech by selling this part of Matravers Co at the relevant sector price earnings ratio of 18, rather than a forecast estimate of Matravers Tech’s present value of future free cash flows of $4,500m.The company tax rate for both companies is 28% per year. Post-acquisition cost of capitalThe post-acquisition cost of capital of the combined company will be based on its cost of equity and cost of debt. The assetbeta post-acquisition can be assumed to be both companies’ asset betas weighted in proportion to their current market value of equity.Westparley Co has 4,000 million $1 shares in issue, currently trading at $8·50. It has $26,000m debt in issue, currently trading at $105 per $100 nominal value. Its equity beta is 1·02. Matravers Co’s asset beta is 0·75. The current market value of Matravers Co’s shares is $12,500m and its long-term loan is currently trading at its book value of $6,500m.The risk-free rate of return is estimated to be 3·5% and the market risk premium is estimated to be 8%.The pre-tax cost of debt of the combined company is expected to be 9·8%. It can be assumed that the debt:equity ratio of the combined company will be the same as Westparley Co’s current debt:equity ratio in market values.The company tax rate for both companies is 28% per year. Plans for Matravers CoThe offer for Matravers Co will be a cash offer. Any funding required for this offer will be a mixture of debt and equity. Although for the purposes of the calculation it has been assumed that the overall mix of debt and equity will remain the same, the directors are considering various plans for funding the purchase which could result in a change in Westparley Co’s gearing.As soon as it acquires all of Matravers Co’s share capital, Westparley Co would sell Matravers Tech as it does not fit in with Westparley Co’s strategic plans and Westparley Co wishes to take advantage of the large values currently attributed to high-technology businesses. Westparley Co would then close Matravers Home’s worst-performing city centre stores. It anticipates the loss of returns from these stores would be partly compensated by higher online sales by Matravers Co,generated by increased investment in its online operations. The remaining city centre stores and all out-of-town stores would start selling the food and household items currently sold in Westparley Co’s stores, and Westparley Co believes that this would increase profits from those stores.Westparley Co also feels that reorganising Matravers Co’s administrative functions and using increased power as a larger retailer can lead to synergies after the acquisition.Post-acquisition detailsOnce Matravers Tech has been sold, Westparley Co estimates that sales revenue from the Matravers Home stores which remain open, together with the online sales from its home business, will be $43,260m in the first year post-acquisition, and this figure is expected to grow by 3% per year in years 2 to 4.The profit margin before interest and tax is expected to be 6% of sales revenue in years 1 to 4.Tax allowable depreciation is assumed to be equivalent to the amount of investment needed to maintain existing operations. However, an investment in assets (including working capital) will be required of $630m in year 1. In years 2 to 4, investment in assets each ye ar will be $0·50 of every $1 increase in sales revenue.After four years, the annual growth rate of free cash flows is expected to be 2% for the foreseeable future.As well as the free cash flows from Matravers Co, Westparley Co expects that post-tax synergies will arise from its planned reorganisation of Matravers Co as follows in the next three years:The current market value of Matravers Co’s shares is $12,500mand its debt is currently trading at its book value of $6,500m. Required:（分数：50）(1).(a) Discuss the behavioural factors which may have led to businesses such as Matravers Tech being valued highly.（分数：6）___________________________________________________________ _______________________________正确答案：(Individual businessA number of behavioural factors, to do with the individual company as well as the sector as a whole, may lead to Matravers Tech being valued higher than appears to be warranted by rational analysis of its future prospects. One possible factor is the asking price, even if it is not a fair one, may provide a reference point which significantly influences the purchaser’s valuation of the business.The fact that Matravers Tech is available for purchase may help raise its price. Purchasers may see this as a rare opportunity to buy an attractive business in this retail sector. This will be made more likely if investors have loss aversion bias, a desire to buy Matravers Tech now because otherwise the opportunity will be lost.Matravers Tech being offered for sale will mean that information about the company, showing it in a positive light, will be available for purchasers. This could result in availability bias, investors taking particular note of this information because they can readily obtain it, rather than other information which may be more difficult or costly to find. SectorThere are a number of possible behavioural reasons why share prices in this sector appear generally higher than rational analysis indicates. One is the herd instinct, investing in thesector because other investors have also been buying shares, not wishing to make judgements independently of other investors. The herd instinct may be generated by previous share price movements. Investors may believe once prices start rising in the sector, they will continue to do so indefinitely. Following fashion may also be a factor. Fund managers who wish to give the impression that they are actively managing their portfolio by making regular changes to it, may have a preference for companies which appear up-to-date and are currently popular. This may be linked to an expectation that sales of technologically-advanced goods are likely to generate high returns.There is also confirmation bias, the idea that investors will pay attention to evidence which confirms their views that the sector is a good one in which to invest, and ignore evidence which contradicts their beliefs. In the past, technology companies have been valued using methods which support the beliefs of investors that they are of high value, rather than traditional methods, such as cash flow analysis, which suggest a lower business value is more realistic.)解析：(2).(b) Prepare a report for the board of directors of Westparley Co which:(i) compares the additional value which Westparley Co believes can be generated from the sale of Matravers Tech based on the P/E ratio, with that of the projected present value of its future free cash flows;(ii) calculates the weighted average cost of capital for the combined company;(iii) estimates the total value which Westparley Co’s shareholders will gain from the acquisition of Matravers Co;and(iv) assesses the strategic and financial value to Westparley Co of the acquisition, including a discussion of the estimations and assumptions made.Professional marks will be awarded in part (b) for the format, structure and presentation of the report.（分数：36）___________________________________________________________ _______________________________正确答案：((iv) Report to the board of directors, Westparley CoThis report evaluates whether the acquisition of Matravers Co would be beneficial to Westparley Co’s sh areholders by estimating the future value generated by Matravers Co (i.e. Matravers Home currently), the proceeds from selling Matravers Tech and the additional value created from synergies immediately after the companies are combined.Strategic fitThe strategic case for taking over the business appears to be strongest for the out-of-town stores and the online business. The acquisition would provide an additional out-of-town presence for Westparley Co. Better usage in the out-of-town stores could generate higher returns. Having the food and home businesses on the same site could generate some cross-sales between the two. Possibly combining the two companies’ online presence and investing further could mean Matravers Home benefiting from the factors which have driven strong performance by Westparley Co.Taking over the city centre stores, even the successful ones, seems to have less strategic logic, however. Westparley Co would be taking on a high cost burden. The success of the food business in city centres is doubtful, as food shops sited there will be less convenient for customers who do not live in thecity centres, and Westparley Co has marketed itself as being easily accessible for customers. There is, perhaps, wider incompatibility between the two businesses. The food business is characterised by quick shopping for often a limited number of items, whereas purchases in the home business, particularly of larger items, are likely to take longer and site convenience be less of an issue.Financial aspectsBased on the predictions for future cash flows and required premiums from Matravers Co’s shareholders, the acquisition would add value to Westparley Co’s shareholders, if, and only if, the excess value on selling Matravers Tech and the synergies are both largely achieved. Together they add up to $2,400m ($558m + $1,842m) compared with total added value of $1,897m. There are questions about the estimates for these figures and also the estimates for the future free cash flows of the current Matravers Home business.SynergiesMost of the additional value is due to synergies and it is difficult to see how the synergies are calculated. There is likely to be scope for some administrative savings. However, operational cost synergies appear less obvious as the two companies are operating in different retail sectors. Any synergy figures will also have to take account of costs in achieving synergies, such as store closure costs, and also commitments such as leases which may be a burden for some time. Synergies may also not be achieved because of lack ofco-operation by staff or problems integrating the two businesses.Current Matravers Home businessThe suggested increase in cash flows appears doubtful for a number of reasons. If stores being closed are making positivecash flow contributions, these will have to be replaced. Whether they can be is doubtful given the problems in this part of the retail sector. It may be a more profitable use of store space to have an area for food sales, but the food sales generated in Matra vers Co’s shops may take business from Westparley Co’s existing shops. Similarly, increased online sales may be at the expense of sales in stores.Sale of Matravers TechThere is no indication of how interested buyers will be in the business. The industry price-earnings (P/E) ratio used may be an average which does not reflect Matravers Tech’s circumstances. It would be better to find a P/E ratio for a proxy company with similar financial and business risk. As Matravers Tech would not be listed, this would suggest a discount to the P/E ratio should be applied. Since also Westparley Co has an estimate of future free cash flow, potential buyers may be able to come up with their own estimates and base the price they are prepared to pay on their estimates.Other assumptionsOne important assumption is the 15% premium expected to be required by Matravers Co’s shareholders. Other assumptions made in the calculations include operating profit margin and tax rates remaining constant and cash flows being assumed to increase to perpetuity. Incremental capital investment is assumed to be accurate. It is assumed that the cost of debt will remain unchanged and that the asset beta, cost of equity and cost of debt can be determined accurately. Given all the assumptions, Westparley Co should carry out sensitivity analysis using different assumptions and obtaining a range of values.ConclusionOn the assumptions made, the acquisition appears to addfinancial value for the shareholders of Westparley Co. However, the figures are subject to a significant number of uncertainties and the strategic logic for buying the whole Matravers business appears unclear. On balance, Westparley Co may want to consider a more limited acquisition of just the out-of-town stores if these are available, as their acquisition appears to make better strategic sense.Report compiled by:DateAppendix 1 Estimate of additional value created from sell-off of Matravers Tech (b) (i)Share of pre-tax profit = 20% x $1,950m = $390mAfter-tax profit = $390m x (1 –0·28) = $281mProceeds from sell-off based on P/E ratio = $281m x 18 = $5,058m Excess value from sell-off = $5,058m – $4,500m = $558m Appendix 2 Estimate of combined company cost of capital (b) (ii)Matravers Co asset beta = 0·75Westparley Co asset betaM arket value of debt = 1·05 x $26,000m = $27,300mMarket value of equity = 4,000 million x $8·50 = $34,000m Asset beta = 1·02 x (34,000)/(34,000 + (27,300 x 0·72)) = 0·65Combined company, asset betaMarket value of Matravers Co equity = $12,500mAsset beta = ((0·75 x 12,500) + (0·65 x 34,000))/(12,500 + 34,000) = 0·68Equity beta = 0·68 ((34,000 + (27,300 x 0·72))/34,000) = 1·07 Combined company cost of equity = 3·5% + (1·07 x 8%) = 12·1% Combined company cost of capital = ((34,000 x 12·1%) + (27,300 x 9·8%x 0·72))/(34,000 + 27,300) = 9·9%, say 10% Appendix 3 Estimate of the value created for Westparley Co’sshareholders (b) (iii)Cash flows, years 1 to 4Present value years 1 to 4 = $4,091mPresent value year 5 onwards (($1,353m x 1·02)/(0·1 –0·02)) x 1·10–4 = $11,781mTotal present value = $4,091m + $11,781m = $15,872m SynergiesPresent value of synergies = $1,842mAmount payable for Matravers Co’s shares = $12,500m x 1·15 = $14,375mValue attributable to Matravers Co’s investors = $14,375m + $6,500m = $20,875mValue attributable to Westparley Co shareholders = present value of cash flows + proceeds from sell-off + value of synergies – value to Matravers Co’s investors= $15,872m + $5,058m + $1,842m – $20,875m = $1,897m)解析：(3).(c) Discuss the factors which may determine how the offer for Matravers Co will be financed and hence the level of gearing which Westparley Co will have.（分数：8）___________________________________________________________ _______________________________正确答案：(Calculation of gearingIf gearing is calculated on the basis of market values, a fall in the share price will result in the level of gearing rising. Westparley Co’s board may be worried about a fall in the share price given the problems affecting many companies’ share prices in the retail sector and the possibility that the stock market may react adversely to the acquisition.Directors’ preferencesDirectors may have their own preferences about financing. They may be able to choose a mix of sources and a level of gearing which reflects these preferences. Directors may be concerned about too high a burden of payment to finance providers, in terms of cost or ultimately repayment of debt. They may not wish to commit the company to conditions imposed by finance providers. By contrast, they may be concerned about how a change in the shareholder base as a result of a share issue may impact upon their own position. Directors may also be concerned about the impression given by their choice of finance. Pecking order theory states that equity issue is seen as the last resort for financing, so if the purchase is financed by an equity issue, it may be seen as a sign of a lack of confidence by directors that Westparley Co can sustain its current share price. Costs and cash flowsGearing decisions may not just be determined by their own preferences but by external conditions or constraints. Choosing more debt could lower the overall cost of capital, dueto lower cost and tax relief, making investments such as Matravers Co appear more profitable. Higher levels of debt may result in the cost of equity rising, reducing the overall impact on the cost of capital. Against that, higher levels of debt mean increased finance cost commitments, even though Westparley Co may need further cash for investment in stores. This may be an important concern if interest rates are high. By contrast, dividends to shareholders do not have to be paid when returns are low or money is required for investment, although failure to meet dividend expectations may result in the board being pressurised by shareholders.AvailabilityThe availability of finance may also be a significant issue, particularly if an acquisition has to be completed quickly. An equity issue may take time to arrange and require shareholder approval. Sufficient debt finance may be difficult to obtain if lenders feel that Westparley Co already has significant commitments to debt finance providers. The timescale over which finance is available may be significant. Westparley Co may seek longer-term finance if existing debt finance is due to be repaid soon or if significant cash is needed for short-term investment, not just in Matravers Co’s stores, but also in Westparley Co’s existing stores.MixOther external factors may influence the mix of finance chosen. Westparley Co’s directors may be concerned about keeping the level of gearing at or below the industry average, because of finance providers becoming worried if gearing exceeds industry levels. Keeping debt as a significant element in overall finance may act as a deterrent to acquirers becoming interested in making a bid for Westparley Co. Directors may also not havea target figure in mind but be content if gearing is within a range of values.)解析：三、Section B(总题数：2，分数：50.00)Boullain Co is based in the Eurozone and manufactures components for agricultural machinery. The company is financed by a combination of debt and equity, having obtained a listing five years ago. In addition to the founder’s equity stake, the shareholders consist of pension funds and other institutional investors. Until recently, sales have been generated exclusively within the Eurozone area but the directors are keen to expand and have identified North America as a key export market. The company recently completed its first sale to a customer based in the United States, although payment will not be received for another six months.Hedging policy and key stakeholdersAt a rec ent board meeting, Boullain Co’s finance director argued that the expansion into foreign markets creates the need for a formal hedging policy and that shareholder value would be enhanced if this policy was communicated to the company’s other stakeholders. However, Boullain Co’s chief executive officer disagreed with the finance director on the following grounds. First, existing shareholders are already well diversified and would therefore not benefit from additional risk reduction hedging strategies. Second, there is no obvious benefit to shareholder value by communicating the hedging policy to other stakeholders such as debt providers, employees, customers and suppliers. You have been asked to provide a rationale for the finance director’s comments in advan ce of the next board meeting.Hedging productsAssume today’s date is 1 March 20X0. Boullain Co is due to receive $18,600,000 from the American customer on 31 August 20X0. The finance director is keen to minimise the company’s exposure to foreign exchange risk and has identified forward contracts, exchange traded futures and options as a way of achieving this objective.The following quotations have been obtained.Exchange rates (quoted as €/US$1)Currency futures (contract size €200,000; exercise price quoted as US$ per €1)Currency options (contract size €200,000; exercise price quoted as US$ per €1, premium: US cents per €1)Assume futures and options contracts mature at the month end and that there is no basis risk. The number of contracts to be used should be rounded down to the nearest whole number in calculations. If the full amount cannot be hedged using an exact number of futures or options contracts, the balance is hedged using the forward market.Margin informationOnce the position is open, the euro futures contract outlined above will be marked-to-market on a daily basis. The terms of the contract require Boullain Co to deposit an initial margin of $3,500 per contract with the clearing house. Assume themaintenance margin is equivalent to the initial margin. The tick size on the contract is $0·0001.Your manager is concerned about the impact of an open futures position on Boullain Co’s cash flow and has asked you to calculate and explain the impact of the following hypothetical changes in the closing settlement price in the first three days of the contract.Closing settlement prices (US$ per €1)Required:（分数：25）(1).(a) Explain the rationale for the policy of hedging Boullain Co’s foreign exchange risk and the potential benefits to shareholder value if that policy is effectively communicated to the company’s key stakeholders.（分数：7）___________________________________________________________ _______________________________正确答案：(Rationale for hedging policyWithin the framework of Modigliani and Miller, Boullain Co’s CEO is corr ect in stating that a company’s hedging policy is irrelevant. In a world without transaction or agency costs, and where markets are efficient and information symmetrical, hedging creates no value if shareholders are well diversified. Shareholder value may even be destroyed if the costs associated with hedging exceed the benefits.However, in the real world where market imperfections exist, including the transaction costs of bankruptcy and other types of financial distress, hedging protects shareholder value by avoiding the distress costs associated with potentiallydevastating foreign exchange fluctuations.Active hedging may also benefit debt-holders by reducing the agency costs of debt. A clearly defined hedging policy acts as a signalling tool between shareholders and debt-holders. In this sense, hedging allows for higher leverage and a lower cost of debt and reduces the need for restrictive covenants. Communication of policy with stakeholdersEven when foreign exchange risks are hedged, the funding of variation margin payments on exchange traded futures can create financial distress. A well communicated hedging strategy allows debt providers to make informed decisions about Boullain Co’s ability to service its debt.Agency costs and the risk of financial distress also impact the expected wealth of employees who, unlike shareholders, may not enjoy the risk reduction benefits of a diversified portfolio.A consistent hedging policy reduces the risks faced by employees which may serve to benefit Boullain Co in the form of motivational and productivity improvements.Customers and suppliers have claims on a company which create shareholder value but are conditional upon Boullain Co’s survival. Suppliers may invest in production systems which create value in the form of lower costs. For customers, these claims reflect promises of quality and after-sales service levels which enable Boullain Co to charge higher prices. In both cases, shareholder value is created as long as the customers and suppliers believe these claims will be honoured. One way of achieving this is by implementing a hedging strategy and communicating it to stakeholders.In conclusion, management should attempt to communicate the principles underlying its hedging strategy and the benefits to shareholder value in the form of reduced agency and distresscosts. In this way, stakeholders can make informed decisions about the potential risks and impact on their expected wealth. )解析：(2).(b) Recommend a hedging strategy for Boullain Co’s foreign currency receipt in six months’ time based on the hedging choices the finance director is considering. Support your recommendation with appropriate discussion and relevant calculations.（分数：11）___________________________________________________________ _______________________________正确答案：(Forward contract$18,600,000 x 0·8729 = €16,235,940FuturesBuy September € futuresCalculation of futures priceSpot rate (US$/€1) = 1/0·8707 = 1·1485Predicted futures using spot rate = 1·1422 + ((1·1485 –1·1422) x 1/7) = 1·1431Or using futures: 1·1422 + ((1·1449 –1·1422) x 1/3)) = 1·1431Number of contractsExpected receipt = $18,600,000/1·1431 = €16,271,542 Number of contracts = €16,271,542/€200,000 = 81·4, say 81 contractsAmount underhedged = $18,600,000 –(81 x €200,000 x 1·1431$/€) = $81,780Receipt at forward rate = $81,780 x 0·8729€/$ = €71,386 OutcomeOptionsSeptember € call optionsNumber of contractsPayment = $18,600,000/1·1420$/€ = €16,287,215Number of contracts = €16,287,215/€200,000 = 81·4, say 81 contractsPremiumPremium = 81 x €200,000 x 0·0077$/€ = $124,740Translate at spot = $124,740 x 0·8711€/$ = €108,661 Amount underhedged = $18,600,000 –(81 x €200,000 x 1·1420$/€) = $99,600Receipt at forward rate = $99,600 x 0·8729€/$ = €86,941 OutcomeRecommendationThe forward and futures contracts fix the exchange rate with the futures contract generating a slightly higher euro receipt compared to the forward. However, the futures contract is exposed to basis risk and is marked-to-market daily. The initial margin and variation margins need to be funded and would impact cash flow in the short term.The option outcome of €16,178,280 provides a worst-case scenario based on the option being exercised. The option premium is expensive which results in a lower receipt if the option is exercised. Unlike the forward and futures contracts, however, the option allows Boullain Co to retain the upside。

1Which of the following statements would NOT be binding on a later court?One which was part of an obiter dictumOne made by a previous court with superior statusOne based on a proposition of law rather than a question of fact2Which TWO of the following statements regarding legislation are correct?Those who draft statute cannot anticipate every case which may ariseCourts may strike out any legislation which is contrary to theEuropean Convention on Human RightsAn Act always comes into operation immediately after it receivesRoyal AssentThe electoral system means that the statute-making process respondsto public opinion3When interpreting statute,a judge may give words meanings which deviate from their ordinary,everyday meanings,in recognition of the problem the statute was written to address.Which rule of statutory interpretation does this statement describe?The mischief ruleThe golden ruleThe contextual rule4For each of the following statements regarding human rights,indicate whether it is true or false..True FalseThe government can never enact new legislation which isincompatible with the European Convention on Human RightsExisting legislation must be interpreted in a way which iscompatible with the European Convention on Human Rights5Under the tort of negligence,to whom do the auditors of a public company owe a duty of care?The company itselfExisting shareholders considering increasing their investmentThe public at large6Which of the following statements regarding the tort of negligence is correct?The claimant need not have suffered actual injury,damage or lossA duty of care will only exist if the harm suffered was reasonablyforeseeableThe duty of care is the same whatever the seriousness of the riskA duty of care is breached even if the cost to eliminate the dangerfar exceeds the risk7Indicate whether the following statements regarding defences to negligence are true or false..True FalseIf a claimant contributed to their own injury or loss,thiswill not affect damages awardedA defendant will have a defence if the conduct of theclaimant implied consent to the risk8Which of the following statements regarding summary dismissal is correct?It is permissible whenever an employee has breached their contractIt means termination of employment with the statutory minimum noticeWithout justification,it allows a claim for wrongful dismissal9Which of the following statements regarding redundancy pay is correct?To be entitled to a redundancy payment,an employee must have had continuous employment for one yearAn employee aged40will receive one week’s pay for each year of serviceThe length of service used in the calculation is subject to a maximum of25years10Which of the following correctly describes constructive dismissal?Dismissal due to the employer's inability to continue with theemploymentBreach of contract by the employee,causing the employer to dismiss them without noticeBreach of contract by the employer,which causes the employee to resignDismissal that cannot be justified by the employer11Which of the following statements regarding a partner’s authority is correct?They can only bind the firm if they have been given express authority to do soThey can bind the firm if a third party genuinely believes they have authority to do soThey can only bind the firm within the limits of the partnership agreement12In relation to the Limited Partnerships Act1907,which of the following statements about a limited partnership is true?There must be at least one general partner with unlimited liabilityThe partners all have limited liability for the debts of thepartnershipThe partners must enter into a written partnership agreement13According to the Companies Act2006,which of the following is NOT allowed to act as an auditor of a company?An employee of the companyA shareholder in the companyA creditor of the company14Which of the following statements concerning the personal liability of an agent on contracts is correct?An agent is liable on a contract if it is usual business practice for them to be liableAn agent who acts on their own behalf but purports to be acting for their principal will not be liable on a contractAn agent will not be liable even if they intend to take personal liability15Which of the following is NOT a feature of criminal law?The burden of proof lies with the claimantThe standard of proof is beyond reasonable doubtIt aims to punish wrongdoers16Which of the following is NOT an indicator of self-employed status?Use of substitute labourProvision of own toolsIntegration with co-workers17Which of the following is NOT a duty owed by an employee?To exercise reasonable skill and careTo indemnify their employerTo account for all money and property received18Which TWO of the following courts can hear an appeal directly from a criminal case heard in the magistrates’court?Divisional Court of the Queen’s BenchCrown CourtCourt of AppealCourt of Justice of the European Union19Which of the following factors indicates self-employed status?Working as part of an inter-dependent teamArranging substitute labour to cover illness and holidaysReceiving payments net of taxable contributionsWearing a company uniform20Which TWO of the following statements apply to a creditors’voluntary liquidation?The members’choice of liquidator will prevailA liquidation committee is formedThe company will be solventA meeting of members will be called21Badtimes Ltd is experiencing cashflow problems,and the directors believe that unless radical action is taken,insolvency may be unavoidable.The company has been contacted by a floating chargeholder concerned that the company may default on its forthcoming interest payments.The directors have also been contacted by other unsecured creditors to discuss the possibility of putting the company into administration.For each of Badtimes Ltd’s creditors,indicate whether or not they need a court order to place the company into administration..Floatingchargeholder Unsecured creditorsWith a court orderWithout a court order22For each of the following roles of officers involved in financially distressed companies,indicate whether it is carried out by an administrator or a liquidator..Administrator LiquidatorTo rescue the company as a going concernTo realise and distribute23Which of the following is NOT a type of term?RepresentationWarrantyCondition24Which TWO of the following companies CANNOT lawfully be created?A public limited company with just one memberA public company limited by guaranteeA public limited company without share capitalA private limited company without share capital25For each of the following,indicate whether it is an offer or an invitation to treat..Offer Invitationto treatGoods displayed in a shop windowGoods taken to the cash desk at a self-service shop26Which of the following statements about consideration is true?It must be adequateIt must be performance of an existing contractual dutyIt must be sufficientIt can be performance of a public duty27In which of the following situations is it NOT possible for a third party to enforce an obligation?Where the subject matter of the agreement is a gratuitous promiseWhere the contract expressly confers the right for a third party to gain enforcement rightsWhere there has been an assignment of the benefit of the contract28Joel and Kerry are the son and daughter of Marion.Marion has asked them to clean their rooms,ready for their grandparents’visit.She said she would give them each£10for doing so.Which TWO of the following statements are true?Joel,Kerry and Marion do not have the requisite intention to createlegal relationsDomestic or family arrangements are usually informal and so thecourt will be willing to overlook the usual requirements for the formation of a contractThis arrangement cannot amount to a contractual agreement becauseit is not made in a commercial contextThere is a lack of mutuality about this arrangement,which meansthat it will be unenforceable as a contract29Fred has contracted with Burt for an extension to be built to his house. Once the work commenced,Fred and his wife found that they were expecting a baby,so it was essential for the work to be completed on time.Fred offered Burt an extra£2,000as an incentive to do so.Which of the following statements is true?Fred and Burt cannot re-negotiate terms once performance has begunBurt cannot claim the extra£2,000because he has provided noadditional considerationAs Fred benefited from the work being completed on time,Burt will be able to claim the extra£2,000The original contract has come to an end and a new one exists in its place30Which of the following statements about specific performance is NOT true?It can be granted at the court’s discretionIt can be ordered where the court can supervise the orderIt can be ordered where damages would be inadequateIt is not available where an injunction would be a more appropriate remedy31Which types of company must hold an annual general meeting?Public companies onlyPrivate companies onlyBoth private and public companies32Which of the following documents is NOT required to be registered in order to form a company?Memorandum of associationThe details of the first auditorStatement of initial capital33Which of the following will a successful claim for damages for a breach of contract compensate the claimant for?Normal loss,and abnormal consequences of which the defendant has knowledge at the time of the contractLoss foreseeable by the injured party at the time of the contractNormal loss,and abnormal consequences irrespective of whether the defendant has knowledge34Nico owns18%of the preference shares in Velvet Ltd.In a recent class meeting of the preference shareholders,78%voted in favour of varying the rights attached to those shares.Nico strongly disagrees with the proposed alteration to preference shares rights.Which of the following statements relating to the alteration of class rights is correct?The decision of the meeting cannot be contested as more than75% voted in favourNico can petition the court to set aside the variation in class rights as she holds more than15%of the preference sharesThe decision of the meeting cannot be contested as more than50% voted in favourThe class rights cannot be varied,as more than15%of the preference shareholders did not vote in favour of the resolution35Janine is a cashier at a bank branch.A customer is angry with her as she has delayed making a transaction,because in Janine's opinion it is an unusual transaction for this customer to make.Janine has called her manager,but he is busy with another client.As the customer begins to shout and become aggressive,Janine tells him that she has to make proper checks because the law requires her to validate unusual transactions.What offence has Janine potentially committed under the Proceeds of Crime Act2002?Money launderingDisclosureFailure to report her suspicionTipping off36Sophia works for TM Ltd.The board of the company treat her as a director, and hold her out as such to the outside world,even though she has never been properly appointed.Which of the following describes Sophia's position as a director?De facto directorAlternate directorShadow directorDe jure director37In contract law,if acceptance is made by means of a letter sent through the post,when is it effective?When the letter is readWhen the letter is postedWhen the letter arrives38For each of the following duties of an employer,indicate whether it is a statutory or a common law duty.Statutory .CommonlawTo pay a minimum wageTo indemnify the employee against expenses and lossesTo provide work for apprenticesTo provide time off work to undertake trade unionduties39Which TWO of the following statements concerning the distribution of a company’s dividends are true?In all cases,the net assets must be no less than the aggregate ofits called-up share capital and distributable reserves at the time of the distributionNo distribution may come from the capital redemption reserveIn all cases,the distribution must come from accumulated realisedprofits,less accumulated realised lossesEven after a dividend is declared and due for payment,there is noobligation for the company to make the distribution40Andrew is an investment fund manager.He has invested substantially in Greenbat plc,whose shares are not doing very well.He logs on to an investment website under another name and posts false information about Greenbat plc being subject to a takeover.The share price increases dramatically.Jane is also a fund manager.She buys a large amount of Greenbat plc shares at the end of the trading day in order to increase the share price.The following day,other investors follow this behaviour and Jane sells her shares at a large profit.Whose behaviour amounts to the offence of market abuse?Jane’s onlyBoth Andrew’s and Jane’sNeither Andrew’s nor Jane’sAndrew’s only41Which of the following statements in relation to criminal offences is correct?A criminal matter is dealt with under the multi-track procedureA summary offence is a minor criminal offenceThe county court has jurisdiction in relation to criminal offences42Which of the following describes a vital term in a contract?GuaranteeConditionWarranty43Which TWO of the following statements regarding contractual terms are correct?The breach of a warranty entitles the injured party to claim damagesonlyThe breach of a condition entitles the injured party to claim damagesonlyThe breach of a warranty entitles the injured party to treat thecontract as discharged onlyThe breach of a condition entitles the injured party to treat thecontract as discharged,and to claim damages44For each of the following statements regarding contractual terms, indicate whether it is true or false..True FalseA representation is a statement which induces the formationof a contract but does not become a term of the contractA term can be implied into a contract by the courts in orderto make the contract work in practice45Jasper is the manager of a sports shop.Ravan,the shop owner,allows Jasper to order running equipment but has told him he must not order any other sports equipment.However,Jasper decides to place an order for cycling accessories.Ravan refuses to pay the cycling supplier. Based on the laws of agency,who is liable to the cycling supplier,and for what reason?Ravan is liable because Jasper exercised his express authority as store managerRavan is liable because he gave Jasper responsibility for ordering stockJasper is liable because he acted without authorityRavan is liable because Jasper acted within his implied authority as store manager46BackgroundThe board of directors of ACF Ltd are concerned about a small group of shareholders who are carrying on a business in competition with ACF Ltd.The directors have asked the members to pass a resolution to alter the articles of association.The alteration would give the directors the power to compulsorily purchase the shares of any shareholder who competes with ACF Ltd.Task12marks Which TWO of the following statements regarding the alteration to ACF Ltd’s articles of association are correct?ACF Ltd can alter its articles by passing a written resolutionACF Ltd must submit a copy of its amended articles to the RegistrarA resolution to alter ACF Ltd’s articles requires a simple majorityvoteACF Ltd must hold a general meeting to alter its articlesTask22marks The members passed the resolution,giving the directors the power requested.Which of the following statements about the validity of the alteration made to ACF Ltd’s articles is correct,and for what reason?It is valid as it is bona fide in the interests of the company asa wholeIt is not valid as it is unjustified discrimination against the minorityIt is not valid because it forces a shareholder to sell his shares back to ACF LtdIt is valid because it benefits the majority of ACF’s shareholdersTask32marks For each of the following alterations to a company's articles of association,identify whether it is true or false..True FalseDirectors whose contract of employment are contained in thearticles can obtain an injunction against the company fromaltering the articles to remove them from officeA company's articles can be amended to compel an existingmember to subscribe for additional shares in the company47BackgroundACB Ltd is a building maintenance company.Its board of directors comprises three directors,Fred,Paul and Jason.Fred and Paul are in poor health and leave the running of the company's business to Jason.They know that Jason acts as ACB Ltd's managing director although he has never actually been appointed to that position.Jason decides that it is time for the company to expand.On behalf of the company,Jason instructs a surveyor to report on the suitability of a plot of land for the construction of an apartment block.Fred and Paul are unhappy about this and refuse to pay the surveyor's fees.Task12marks Which of the following statements regarding liability for the surveyor's fees is correct?Jason is personally liable to pay the surveyor's fees because he instructed the reportJason and his fellow directors are jointly and severally liable for the surveyor's feesJason and ACB Ltd,are jointly and severally liable for thesurveyor's feesACB Ltd is liable for the surveyor's fees as the board of directors allowed Jason to act as its managing directorTask22marks What type of authority was Jason exercising when he entered into the contract with the surveyor?ImpliedExpressActualApparentTask32marksFor each of the following statements regarding directors'powers, indicate whether it is true or false..True FalseDirectors'powers can be restricted by the company'sarticles of associationThe directors must exercise their powers in the bestinterest of the members48BackgroundRebecca bought a home computer for personal use from a sole trader,trading as Computers to Go.When she got the computer home she found that it didn't work.She returned the computer to the shop,but the retailer refused to refund her money and pointed to a sign placed above the door inside the shop,which she had not seen and which stated:‘All products must be inspected before any sale is concluded.In the event of any defect,no liability will be accepted and refunds will not be given.’Task14marksFor each of the following statements,identify whether it is true or false..True FalseThe exclusion clause has been incorporated into the contractwith RebeccaRebecca is dealing as a consumerThe exclusion clause would need to be reasonable to beeffectiveThe law relating to unfair contract terms will not applyComputers to Go as it is a sole traderTask22marksAssuming that the exclusion clause is invalid,which of the following actions can Rebecca take?Sue for specific performance of the contract and claim damagesTerminate the contract and claim damagesTreat the contract as discharged,owing to the anticipatory breachSue for specific performance of the contract only49BackgroundIn March20X2,Jaygee plc is seeking to raise capital and therefore allots 100,000ordinary shares,each with a nominal value of£2,for£4.50each in cash,giving rise to the share premium of£250,000.Task12marksWhich TWO of the following statements about the share premium are true?It can be used for a dividend payment in the same yearIt can be used for a dividend payment in the following yearIt can be used for the expenses of previous share issuesIt can be used for an issue of bonus shares in the futureTask22marksIn March20X3,the board of Jaygee plc considers an allotment of more£2 ordinary shares.The shares will be partly-paid but carry a premium of £2.50.What minimum payment for the shares will the purchasers have to make?50%of the nominal value,plus50%of the premium50%of the nominal value,plus the full premium25%of the nominal value,plus the full premium25%of the nominal value,plus25%of the premiumTask32marksMalcolm wishes to offer a warehouse that he owns in return for a substantial number of the shares to be allotted.Indicate whether the following statements about Malcolm’s offer are true or false..True FalseThe number of shares which could be purchased in return forthe warehouse would be determined by an independentvaluation of the buildingMalcolm would need to give an undertaking to transfer theproperty by March20X850BackgroundEXL Ltd is a company which sources designer bathroom products from both UK-based and overseas suppliers.Most of EXL Ltd’s overseas business is carried out by local agents on its behalf.Adam,the managing director of EXL Ltd,wants to be sure that the company is complying with the requirements of the Bribery Act2010.The following matters have come to his attention and he has asked for your advice:1)Ravi,a director of EXL Ltd wasrecently invited to an event hostedby a potential supplier,PNK plc.EXL Ltd is in the process ofconsidering proposals from PNK plcand two other companies and willaward a lucrative contract to one ofthem.During the event,it wasannounced that Ravi had won a newcar in a free prize draw.Anemployee of PNK plc joked with Ravithat winning the car should help PNKplc win the EXL Ltd contract.At theboard meeting which followed,Ravicast his vote in favour of PNK plcbeing awarded the contract.2)One of the company’s agentsoverseas is making payments togovernment officials in order toexpedite export licences for goodssent to the UK.Task12marksWhich of the following statements regarding the car won by Ravi is correct?Both PNK plc and Ravi have committed a bribery offenceOnly PNK plc has committed a bribery offenceNeither PNK plc nor Ravi have committed a bribery offenceOnly Ravi has committed a bribery offenceTask22marksWhich of the following statements regarding the actions of EXL Ltd’s agent overseas is correct?No offence has been committed by EXL Ltd,since the events occurred overseas and not in the UKNo offence has been committed by EXL Ltd,since its contact overseas is an agent and not an employeeEXL Ltd has potentially committed the offence of bribing a foreign public officialEXL Ltd has potentially committed the offence of failure to prevent briberyTask32marksFor each of the following statements regarding bribery,indicate whether it is true or false..True FalseThe directors of a company found guilty of bribery can besued for compensation for failing to maintain adequateproceduresA partnership cannot be guilty of the offence of corporatefailure to prevent bribery。

Date sent to markerDate received from marker Date returned to student Student's overall markREVISION MOCK SCRIPT SUBMISSION FORMScript marking is only available to Classroom, Live Online and Distance Learning students enrolled on appropriate Kaplan courses.Name: ………………………………………………………..…………………..……….….… Address: ……………………………………………………………………………………....... ………………………………………………………..……………………………………….........………………………………………………………............…………………….................. Kaplan Student Number: ………………………………………………………….....…Your email address:ACCA – Paper F4 (ENG) Corporate and Business LawJune 2015 Revision MockInstructions• Please complete your personal details above.• All scripts should ideally be submitted to your Kaplan centre for marking via email to help speed up the marking process. Please scan this form and your answer script in a single PDF and email it to your Kaplan centre.• Alternatively you may post your script to us. If so, please use the correct Royal Mail tariff (large letter). • Classroom students may submit scripts to their local centre in person.You will be provided with the dated receipt below which you should retain as proof of submission.Note: If you are a sponsored student, your result will form part of the report to your employer.Office useCentre Date received Marker’s initialsReceipt – only issued if script submitted by classroom student in person to Kaplan centre:------------------------------------------------------------------------------------------------------------------------------------------ Name: ................................................................................... Received by: ..................................................Script: ...................................................................................Date: .............................................................Marking ReportNotice to Markers1 When commenting about the script performance, please ensure on individual questions andon overall assessment your comments cover areas of examination technique including:•Timemanagement •Handwriting •Presentation andlayout•Use ofEnglish•Points clearly and concisely made •Relevance ofanswers toquestion•Coverage anddepth of answer•Accuracy ofcalculations•Calculationscross-referencedto workings •All parts of therequirementattempted•Length ofanswers equatesto marksavailable•Read thequestioncarefully2 For each question, please provide suitable constructive commentsQuestionNumberGeneral Comments Exam Technique CommentsACCA REVISION MOCKCorporate and Business LawJune 2015Time allowed 2 hoursThis paper is divided into two sections:Section A – ALL 45 questions are compulsory and MUST be answered.Section B – ALL 5 questions are compulsory and MUST be answered.Do NOT open this paper until instructed by the supervisor.This question paper must not be removed from the examination hall.Kaplan Publishing/Kaplan Financial P a p e r F 4 ( E N G )ACCA F4 (ENG) : CORPORATE AND BUSINESS LAW2 KAPLAN PUBLISHING© Kaplan Financial Limited, 2015The 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, and 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.REVISION MOCK QUESTIONSKAPLAN PUBLISHING 3SECTION AALL 45 QUESTIONS ARE COMPULSORY AND MUST BE ANSWERED1In the context of the English legal system, which one of the following usually forms a binding precedent? A The ratio decidendi B The obiter dictaC A decision made by a lower court(1 mark)2The courts use a number of tests to determine if a person is employed or self-employed. Which one of the following is not one of the tests used to determine employment status? A The economic reality test (or multiple test) B The integration testC The factual test DThe control test(2 marks)3What is the effect of a successful claim of contributory negligence? A The claimant is found to be responsible for his own injuries so his claim is dismissed B The claimant is partially responsible for his own injuries thus his level of damages isreducedCThe claimant is found to be responsible for his own injuries and must therefore compensate the defendant for bringing the action against him (1 mark)4In the context of the tort of negligence, manufacturers owe a duty of care to the end consumers of their products.Which of the following is this principle known as? A Volenti Non Fit Injuria B The Neighbour Principle C Novus Actus Interveniens DRes Ipsa Loquitor(2 marks)5In the event of winding up, the liability of shareholders in a company is limited to an amount agreed to be contributed.This is an example of what type of company? A A public limited companyB A private company limited by shares CA private company limited by guarantee(1 mark)ACCA F4 (ENG) : CORPORATE AND BUSINESS LAW4 KAPLAN PUBLISHING6 Bale Ltd receives a loan for £1m secured against the company’s business premises. This security is an example of which of the following? A A floating charge B A fixed chargeCA crystallised floating charge(1 mark)7In the English legal system, there are a number of important distinctions between civil law and criminal law.Which of the following statements are features of the civil law system? (1) It is a form of private law(2) The burden of proof is beyond all reasonable doubt (3) The aim is settle disputes between two parties A (1) and (2) only B (1) and (3) only C (2) and (3) only D(1), (2) and (3)(2 marks)8An employee has been informed by their employer that they are legally obliged to provide honest and faithful service.Which one of the following statements is true? A This is an example of a contractual term implied by statute B This is an example of a contractual term implied by common law C This is most likely to be an express contract termDThe employer is incorrect, there is no legal obligation for an employee to provide honest and faithful service. (2 marks)9Craig is a trainee accountant and recently acquired suspicions that one of his clients was committing money laundering.Which TWO of the following statements are TRUE? (1) Craig is required to make a qualifying disclosure of his suspicions (2) Craig is NOT required to disclose his suspicions as he is only a trainee (3) Craig must make his client aware of his suspicions before making a disclosure (4) Craig must NOT make his client aware of his suspicions as this would amount to the offence of “tipping off” A (1) and (3) B (2) and (4) C (2) and (3) D(1) and (4)(2 marks)REVISION MOCK QUESTIONSKAPLAN PUBLISHING 510 Alan places an advertisement in his local newspaper for the sale of his car for £1,000. In the context of contract law, Alan’s advertisement is an example of which ONE of the following? A An offer for saleB A mere statement of selling price CAn invitation to treat(1 mark)11 In the context of contract law, which of the following statements are TRUE? (1) Consideration must be sufficient but not adequate (2) Consideration can be executed or executory(3) Going above and beyond existing legal duties is valid consideration A (1) and (2) only B (1) and (3) only C (2) and (3) only D(1), (2) and (3)(2 marks)12Where a company’s business is carried on with the intent to defraud creditors this is known as what? A Fraudulent Trading BWrongful TradingC Insider Dealing (1 mark)13On the liquidation of a company, which of the following ranks highest in order of repayment? A Ordinary shareholders BPreference shareholdersC Floating charge-holdersD Fixed charge-holders (2 marks)14The statement of capital of Sami Ltd shows an amount of unpaid share capital that has not yet been called up from shareholders and therefore remains unpaid. This is an example of which of the following? A Issued share capital B Paid up share capital C Called up share capital DUncalled share capital(2 marks)ACCA F4 (ENG) : CORPORATE AND BUSINESS LAW6 KAPLAN PUBLISHING15In the context of the tort of negligence, a duty of care is owed in respect of professional statements made where there exists a “special relationship” between the parties. Which of the following best describes the meaning of “special relationship”? A Where a professional person advises any party in a professional context.B Where a professional person advises a known person who relies on the statement for a known purpose.CWhere the parties are members of the same family.(1 mark)16In the context of employment law, which of the following statements best describes UNFAIR DISMISSAL? A Employee is dismissed without proper noticeB Employee resigns due the employer committing a serious breach of contract CEmployee is dismissed without a justifiable reason(1 mark)17In the context of the English legal system, which ONE of the following statements is FALSE in relation to the doctrine of precedent? A A precedent is not binding where it has been overruled by a higher court B A precedent is not binding where it has been overruled by statute C A precedent is not binding where the material facts of the cases differDA precedent is not binding where it is based on the ratio decidendi of a previous case(2 marks)18In the context of the English legal system, which one of the following courts is the “court of first instance” for all criminal cases? A County Court BCrown CourtC Magistrates Court (1 mark)19Sereena has recently been dismissed, with notice, by her employer due to the fact that the business has relocated to a new site 300 miles away. Which one of the following statements is true? A Sereena has been wrongfully dismissed. B Sereena has been unfairly dismissed. C Sereena has been made redundant. DSereena has been constructively dismissed.(2 marks)20In the context of employment law, which ONE of the following is NOT a remedy for unfair dismissal? A Re-instatementB Monetary compensationCA favourable employment reference(1 mark)REVISION MOCK QUESTIONS21 In the context of company law, a person who is formally and legally appointed or electedas a director in accordance with the articles of association is known as what?A De facto directorB De jure directorC Shadow director (1 mark)22 In the context of company law, which ONE of the following requires an ORDINARYresolution of shareholders?A Altering the articles of associationB Reduction of share capitalC Removing a directorD Altering the company name (2 marks)23 According to the Insolvency Act 1986, which of the following is/are possible grounds for aCOMPULSORY winding up?(1) A company has passed a special resolution to be wound up by the court(2) A public company has not been issued with a trading certificate within one year ofincorporation(3) A company has not commenced business with 6 months of being incorporatedA (1) and (2) onlyB (1) and (3) onlyC (2) and (3) onlyD (1), (2) and (3) (2 marks)24 In the context of contract law, which ONE of the following will terminate a valid offer?A AcceptanceB A counter-offerC A request for further information (1 mark)25In the context of contract law, agreement requires offer and acceptance.Which ONE of the following statements regarding acceptance is FALSE?A Acceptance must be communicatedB Silence can never amount to valid acceptanceC Acceptance must be communicated in writing (1 mark) KAPLAN PUBLISHING 7ACCA F4 (ENG) : CORPORATE AND BUSINESS LAW8 KAPLAN PUBLISHING26 Which of the following are potential defences against a charge of INSIDER DEALING? (1) They had reasonable belief that the information was publicly disclosed (2) They did not profit from the transaction(3) They would have carried out their actions regardless of the insider information A (1) and (2) only B (1) and (3) only C (2) and (3) only D(1), (2) and (3)(2 marks)27 An essential element of contract is that both parties have intention to create legal relations. Which ONE of the following statements is FALSE? A There is a presumption that no intention exists in social and domestic agreements B There is a presumption that intention exists in commercial agreements C Presumptions can be rebutted if there is clear evidence to determine intention DPresumptions can never be rebutted(2 marks)28Arch Ltd is a SOLVENT company. The shareholders have passed a special resolution to liquidate the company.This is an example of which ONE of the following? A Creditors’ voluntary winding up BMembers’ voluntary winding upC Administration (1 mark)29In the context of company law, which of the following statements are TRUE? (1) A private company can be limited by shares or by guarantee(2) A private company is forbidden from offering its shares to the general public (3) A private company must have at least 2 directors A (1) and (2) only B (1) and (3) only C (2) and (3) only D (1), (2) and (3)(2 marks)30Niema has been continuously employed by KPP Ltd for 20 months. She is dismissed, with notice, by her employer for requesting paid maternity leave.Which one of the following statements is true?A The reason for dismissal is automatically unfair, so Niema can bring action for unfairdismissal regardless of her length of employmentB Niema cannot bring an action for unfair dismissal since she has not been incontinuous employment for more than 2 yearsC Niema can claim statutory redundancy payD Niema can claim constructive dismissal (2 marks)31Peter wishes to take legal action against James for an outstanding debt of £6,000.What track of the county court will initially hear the case?A The Small Claims TrackB The Fast TrackC The Multi Track (1 mark)32 In the context of company law, a dividend which is paid unlawfully can be recovered fromwhich of the following?(1) Shareholders who knew or had reasonable grounds to know the dividend wasunlawful(2) Any director unless they exercised reasonable care in relying on properly preparedaccounts(3) The auditors if the dividend was paid in reliance on incorrect accountsA (1) and (2) onlyB (1) and (3) onlyC (2) and (3) onlyD (1), (2) and (3) (2 marks)33 According to the Criminal Justice Act 1993, a person commits the offence of insiderdealing if they use inside information to do what?(1) Buy or sell price-affected securities(2) Encourage another person to buy or sell price-affected securities(3) Disclose the inside information to anyone other than in the course of theiremploymentA (1) and (2) onlyB (1) and (3) onlyC (2) and (3) onlyD (1), (2) and (3) (2 marks)34 In the context of contract law, which of the following statements regarding contractterms are TRUE?(1) Contract terms be implied by common law(2) Contract terms can be implied by statute(3) Implied terms override express termsA (1) and (2) onlyB (1) and (3) onlyC (2) and (3) onlyD (1), (2) and (3) (2 marks)35 Which of the following issues will Judges consider in establishing whether a duty of careexists?(1) Was the damage reasonably foreseeable by the defendant at the time of the act oromission?(2) Is it fair and reasonable to impose a duty of care between the parties?(3) Is there a matter of public policy that requires no duty of care to exist?(4) Is there proximity between the parties?A (1) and (2) onlyB (2) and (4) onlyC (2) and (3) onlyD (1), (2), (3) and (4) (2 marks)36In order to create a company a number of documents must be submitted to the Registrar.Which of the following documents does not have to be submitted?A Memorandum of AssociationAssociationofB ArticlesOfficers (1 mark)C Statementof37Edward is the managing director of Leach Limited. The company’s auditor recently raised concerns over irregular entries in the accounts, after which Edward offered them £10,000 to ignore the matter.Which of the following offences is this an example of?A BriberyB Money LaunderingC InsiderDealingTrading (2 marks)D Fraudulent38 In the context of remedies for breach of contract, where a judge orders a defendant toperform their obligations under the contract this is known as what?A DamagesB Specific PerformanceC InjunctionD Rescission (2 marks)39 In the context of the English legal system, which one of the following best describes theliteral rule of statutory interpretation?A Judges interpret the wording of statute to give a non-absurd, or sensible, outcomeB Judges consider the mischief parliament were seeking to overcomeC Judges will apply the normal dictionary meaning of words used in the statuteD Judges consider Parliament’s intention when interpreting statute (2 marks)40 In the context of employment law, which of the following are required for an employeeto bring an action for unfair dismissal?(1) Employee must have 1 year continuous employment(2) Employee must serve a grievance notice on the employer(3) Employee must bring action to Employment Appeals Tribunal within 3 months ofdismissalA (1) and (2) onlyB (1) and (3) onlyC (2) and (3) onlyD (1), (2) and (3) (2 marks)41 In the context of the English legal system, which of the following are examples ofdelegated legislation?Instruments(1) Statutory(2) Acts of ParliamentLaws(3) ByeA (1) and (2) onlyB (1) and (3) onlyC (2) and (3) onlyD (1), (2) and (3) (2 marks)42 A term in a contract that is merely incidental to the main purpose of the contract, isknown as a what?A ConditionB WarrantyC Innominate Term (1 mark)43 Which ONE of the following is NOT a type of behaviour that amounts to MARKET ABUSE?A Improper disclosureB Misuse of informationLaundering (1 mark)C Money44Kolo Ltd issued 1,000 £1 ordinary shares to James. The issue price was £1 per share, but James was only required to pay 70p per share immediately.This is an example of what type of share issue?A An issue of shares at a discountB An issue of shares at a premiumC An issue of shares partly paid (1 mark)45 In the context of contract law, which ONE of the following is VALID consideration?A A promise of future paymentB Performing an existing contractual dutyconsideration (1 mark)C PastSECTION BALL 5 QUESTIONS ARE COMPULSORY AND MUST BE ANSWERED1On 1 April 2014, Marion contracted with Turf Limited to landscape her garden for £4,000.The contract stipulated that the work would begin on 1 August 2014, and would becompleted before 31 August 2014.However, on 1 July 2014 Turf Limited contacted Marion to say that due to a backlog ofwork, they would not be able to landscape her garden until sometime in 2015.Marion was very upset by this, especially as the nearest similar quote for the work is£5,500. She told Turf Limited that they must carry out the work they agreed per theircontract, and that she would be prepared to take them to court to force the matter.Required:(a) State the meaning of anticipatory breach of contract. (2 marks)(b) Identify which of the following remedies are most likely to be awarded to Marionfor breach of contract:performance(i) Specificmarks)(ii) Damages (4(Total: 6 marks)2James has worked for Aniston Plc for 9 months as a data analyst. Recently James uncoveredevidence to suggest the company was in breach of industry regulations, and he approachedhis manager informally to explain his concerns.His manager told James his suspicions were unfounded, and that he should ignore thematter. After several weeks, James became more concerned and decided to write a formalletter to his manager setting out the reasons for his concerns. Upon receiving the letter,James’ manager asked to see him, upon which he gave him notice of his dismissal.Required:(a) State the meaning of unfair dismissal. (2 marks)(b) Identify the grounds on which James would be successful in a claim for unfairmarks) dismissal. (4(Total: 6 marks)3Azra is a qualified accountant working for Bookers & Co. Whilst preparing the accounts forher client Shifty Ltd, she noticed there were several instances of large sums of money beingcredited into the company’s bank account from a foreign source. These funds were thenimmediately transferred into a separate company account, before being withdrawn asdividends by the company’s sole shareholder.The owner of Shifty Ltd has told Azra that the funds represented trading income receipts,and should be reported accordingly, however there are no invoices or othercorrespondence available to support this. Azra suspects the company may be committingmoney laundering, and is uncertain whether to raise her suspicions with the client.Required:(a) Explain Azra’s legal obligations under the Proceeds of Crime Act 2002 regarding thefollowing:reportto(i) Failuremarks)off (4(ii) Tipping(b) State the penalties for failure to report and tipping off (2 marks)(Total: 6 marks)4Sheeran Ltd was incorporated in 2012 with issued share capital of 50,000 £1 ordinaryshares. The issued share capital is fully paid up. The company is now considering raisingmore finance, and the directors propose to issue another 25,000 £1 ordinary shares. At themoment the market value of the shares is £1.20 per share.The directors are keen to proceed with the share issue, but are uncertain whether they arerequired to obtain permission from existing shareholders, and whether there are any legalrestrictions on the selling price they can set for the shares.Required:(a) State the minimum selling price the directors can place on the shares, according tothe Companies Act 2006. (2 marks)(b) State the ways that directors can obtain authority to issue new shares. (2 marks)(c) State the contents of such authority. (2 marks)(Total: 6 marks)5Patrick owns a fast-food restaurant business in central London.“Taco-2-Go”serves a large variety of Mexican taco products. Patrick opened the restauranton the same street as a long established and successful rival business “Burrito-2-Go”, whichserves a large variety of Mexican burrito products. Since opening Taco-2-Go the businesshas been extremely successful, but the owner of Burrito-2-Go has complained that Patrickhas copied his business name and unfairly gained business from him.Required:(a) In the context of Tort Law, state the meaning of “passing off” (2 marks)(b) Explain whether Patrick would be liable for passing off in the above instance.marks)(4(Total: 6 marks)。

P5-ACCA-final mock 2023IntroductionThe P5-ACCA exam is a final mock examination that tests the knowledge and skills of candidates in the field of management accounting. This article aims to provide a comprehensive overview of the P5-ACCA final mock exam that is scheduled for the year 2023.Exam FormatThe P5-ACCA final mock exam consists of two main sections: Section A and Section B. Section A comprises objective test questions, while Section B contains both scenario-based and constructed-response questions. Candidates are required to complete both sections within the allocated time.Section AIn Section A, candidates will face objective test questions that assess their knowledge and understanding of key concepts in management accounting. These questions are multiple-choice and require candidates to select the correct answer from the options provided. Section A carries a total of 40 marks.Section BSection B of the exam is designed to test candidates’ application, analysis, and evaluation skills in a scenario-based context. This section includes both constructed-responsequestions, which require candidates to provide detailed written answers, and scenario-based questions, which require candidates to analyze and interpret information before answering. Section B carries a total of 60 marks.Exam ContentThe P5-ACCA final mock exam covers a wide range of topics related to management accounting. These topics include:1.Cost and management accounting techniques2.Decision-making techniques3.Budgeting and performance management4.Strategic performance measurement5.Risk and control6.Internal audit and governanceCandidates are expected to have a solid understanding of these topics and their application in real-world scenarios in order to succeed in the exam.Exam PreparationTo excel in the P5-ACCA final mock exam, candidates should follow a comprehensive study plan that covers all the relevant topics. Here are some tips for effective exam preparation:1.Review the syllabus: Understand the exam syllabusand ensure that you are familiar with all the areas of study.2.Practice past papers: Solve as many past papers andmock exams as possible to become familiar with the exam format and gain confidence in your abilities.3.Study in groups: Form study groups with fellowcandidates to engage in discussions and enhance yourunderstanding of challenging topics.4.Seek guidance: If you encounter difficulties whilestudying, don’t hesitate to seek guidance from tutors orexperts in the field. They can provide valuable insights and help clarify any confusion.5.Time management: Create a study schedule andallocate sufficient time to each topic. This will ensure that you cover all areas of study without feeling rushed.6.Take breaks: While studying for long hours isimportant, it’s equally important to take regular breaks to rest and rejuvenate. This will help maintain focus andprevent burnout.Exam Day TipsOn the day of the P5-ACCA final mock exam, it’s important to follow these tips to maximize your performance:1.Get a good night’s sleep: Ensure t hat you haveenough rest the night before the exam to be alert andfocused during the exam.2.Eat a healthy meal: Have a balanced meal before theexam to provide the necessary energy for your brain tofunction optimally.3.Arrive early: Arrive at the exam venue well ahead oftime to avoid any last-minute stress or delays.4.Read the instructions: Carefully read the examinstructions before starting the exam to understand therequirements and time allocation for each section.5.Manage your time: Divide your time according to themarks allocated to each section. This will help ensure that you allocate sufficient time to each question and complete the exam within the given time frame.6.Stay calm and focused: If you encounter difficultquestions, stay calm and focused. Move on to the nextquestion and come back to the difficult ones later if youhave time.ConclusionThe P5-ACCA final mock exam is a comprehensive assessment of candidates’ knowledge and skills in management accounting. To succeed in this exam, candidates must thoroughly prepare by studying all relevant topics, practicing past papers, and seeking guidance when needed. By following effective study techniques and implementing exam day tips, candidates can optimize their performance and increase their chances of success in the P5-ACCA final mock exam in 2023.。