LW H Corporate fraudulent and criminal behaviour

Written by Saad Rahman (ACCA)

ACCA · Corporate and Business Law · 7 questions

Name: ____________________   Date: ____________

1. Which of these is inside information?

   • A A rumour in the newspaper
   • B General information about the economy
   • C Public financial statements
   • D Specific, non-public information that would significantly affect the price of securities

2. What is money laundering?

   • A Dealing with the proceeds of crime so that they appear legitimate
   • B Overstating profit in the financial statements
   • C Paying tax late
   • D Making a payment to a supplier early

3. Customer due diligence means:

   • A Identifying and verifying a customer and understanding the business relationship
   • B Giving the customer a discount
   • C Reporting all customers to the police
   • D Checking the customer's credit limit only

4. A company can commit a bribery offence if it fails to:

   • A Hold an AGM
   • B Prevent bribery by a person associated with it
   • C Appoint an auditor
   • D Pay its suppliers on time

5. Fraudulent trading requires:

   • A Only that the director made a mistake
   • B Only that the company was insolvent
   • C Intent to defraud creditors or another fraudulent purpose
   • D That the company has made a loss

6. A director continues to trade when there was no reasonable prospect of avoiding insolvent liquidation and takes no steps to minimise creditor loss. This is:

   • A Wrongful trading
   • B Market abuse
   • C Money laundering
   • D Insider dealing

7. Tipping off in the context of money laundering means:

   • A Giving a discount to a client
   • B Reporting a transaction to the authorities
   • C Refusing a customer's business
   • D Warning a person that they are under suspicion, which may be an offence