ACCA 2026 LW Corporate Law Corporate Governance Free Quiz 1

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ACCA 2026 LW Corporate Law Corporate Governance Free Quiz 1

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ACCA 2026 LW Corporate Law Corporate Governance Free Quiz 1

Practice ACCA 2026 LW Corporate Law MCQs from Corporate Governance. Get instant results with Explanation.

General10 MCQs

1. What is corporate governance?

A. Corporate governance is the same as managementB. Corporate governance is the system of direction and control of companiesC. Corporate governance only applies to listed companiesD. Corporate governance is not regulated

2. What is the UK Corporate Governance Code?

A. The UK Corporate Governance Code is mandatory for all companiesB. The UK Corporate Governance Code applies only to private companiesC. The UK Corporate Governance Code applies to listed companies on a comply or explain basisD. The UK Corporate Governance Code is not relevant to public companies

3. What is the role of the board of directors?

A. The board of directors is responsible for managing the company and setting strategyB. The board of directors is only responsible for financial mattersC. The board of directors is not accountable to shareholdersD. The board of directors is the same as the management

4. What is the recommended board composition under the UK Corporate Governance Code?

A. The Code does not require independent directorsB. The Code requires all directors to be executiveC. The Code requires all directors to be non-executiveD. The Code recommends a balance of executive and independent non-executive directors

5. What is an independent non-executive director?

A. An independent NED is an executive directorB. An independent NED is a non-executive director with no conflicts of interest, providing independent oversightC. Independent NEDs are not required by the CodeD. Independent NEDs are appointed by the executive team

General10 MCQs

6. What is the "comply or explain" principle?

A. "Comply or explain" means companies must comply with all Code provisionsB. "Comply or explain" means companies can ignore the Code without consequenceC. "Comply or explain" means companies comply or explain deviations; investors use the explanationD. "Comply or explain" is not part of the UK governance regime

7. What is the duty under s.172 of the Companies Act 2006?

A. Section 172 of the Companies Act 2006 sets out the duty to promote the success of the companyB. Section 172 only applies to directors of listed companiesC. Section 172 requires directors to prioritise shareholders over other stakeholdersD. Section 172 is not relevant to directors

8. What is the Stewardship Code?

A. The Stewardship Code applies to all companiesB. The Stewardship Code applies to directorsC. The Stewardship Code is mandatoryD. The Stewardship Code applies to institutional investors and promotes engagement with companies

9. What is the role of the FRC (Financial Reporting Council)?

A. The FRC is a government departmentB. The FRC is the UK regulator for corporate governance and reportingC. The FRC only sets accounting standardsD. The FRC does not enforce corporate governance

10. What is the principal-agent problem in corporate governance?

A. The principal-agent problem is between the company and its employeesB. The principal-agent problem is between directors and creditorsC. The principal-agent problem is between shareholders and directors, and governance aims to align interestsD. The principal-agent problem is not relevant to corporate governance

📋 ACCA - Test Online Practice Quizzes

ACCA

Conducting Body: Association of Chartered Certified Accountants

Frequency: Exam Frequency Year Round | Time: 360 Minutes

Negative Marking: No

⚡ Test Pattern (Total: 116 MCQs):

Business and Technology: 46 MCQs
Management Accounting: 35 MCQs
Financial Accounting: 35 MCQs
Corporate and Business Law: 45 MCQs

Merit Formula: -

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