The ACCA Corporate and Business Law (LW) subject develops knowledge and skills around the general legal framework. The syllabus recognises that potential accountants working for firms or businesses are not lawyers, and therefore, specialist legal knowledge isn’t required. However, accountants need to understand when they need to seek specialist legal advice.
The topics we will discuss to help you revise for your Corporate and Business Law (LW) exam include:
- The core areas and objectives of the exam
- How the exam is structured
- The benefits of studying ACCA Corporate and Business Law
- Challenges
- An example exam question
- Additional resources
What are the exam topics?
The ACCA LW syllabus tests the following:
- Essential elements of the UK legal system, including the court system and sources of law
- The law of obligations (contract and tort)
- Employment law - relating to contract, dismissal, and redundancy
- The formation and constitution of a business organisation
- The capital and financing of companies
- Management, administration, and the regulation of companies
- Legal implications of insolvency law
- An understanding of corporate fraudulent and criminal behaviour (such as money laundering, bribery, market abuse, and management fraud).
How is the exam structured?
The ACCA LW exam lasts two hours, and you are required to complete two sections.
| Section | Number of marks |
|---|
Section A - 20 one-mark questions
- 25 two-mark questions
| 70 marks |
Section B - Five scenarios (six marks per scenario)
- Broken down into two or three tasks/questions.
| 30 marks |
For section A:
- Learners typically perform worse in the two-mark questions as the more complex ones in this section are generally more challenging than the one-mark questions.
- Every question in this section is all or nothing, so you can’t score partial marks on a two-mark question.
For section B:
- Questions are objective style testing - so multiple choice, true and false, and selecting two from four options are more common question types.
- You can score partial marks on a task, for example, you can score one mark out of two or three out of four.
How the ACCA LW exam benefits your career
The general aim of the ACCA LW subject is to develop knowledge and comprehension of the general legal framework relevant to accountants, both in practice and working for an organisation.
This subject won’t turn accountants into lawyers, as complex legal questions are still handled by legal professionals. But, as an accountant, you’ll need to understand the legal framework in your workplace and know when to seek professional legal advice. The ACCA LW exam is designed to assess whether you have enough knowledge to be considered competent to work as an accountant in this area.
Common challenges in the ACCA LW exam
When studying for this exam, you need to relate the subject to real-life scenarios - many of which you’ll find yourself in your daily life or at some point in your career. However, you will not actually have to deal with complex legal issues daily at work.
In terms of the exam, half (50%) are 25 two-mark questions which are all or nothing. You need to ensure you read the scenario, requirements, and answer options carefully to ensure you don’t misunderstand and choose the incorrect option.
Addressing these challenges
When you’re preparing for your exam, it can be helpful to think about the ‘contracts’ that you encounter in your daily life. For example, paying for parking, taking public transport, or even buying a coffee on your way to work can all help you connect the ACCA LW subject to real-world experiences.
Additionally, if you work in practice, you may actively apply the knowledge taught in the LW subject when clients ask you for advice on the best legal structure for their company.
During the revision phase, also be sure to practice the ACCA Practice and/or Specimen exams under exam conditions to ensure that you don’t struggle for time on the day. Ensure that you manage your time well so that you can read the scenario, requirements, and answer options at least twice before committing to your answers.
Example question and answer
The above text is an example of a typical ACCA LW ‘section B’ question, which provides a detailed scenario, often reflecting potential real-life situations, followed by a series of questions or tasks. It is important to remember that partial marks may be awarded in Section B. This scenario is a typical contract law example that could appear in your real exam, as contract law is a significant component within this syllabus.
A price tag on display on a product is an invitation for a customer to make an offer rather than constituting an offer to make a sale to the customer at that price. Acceptance would be when Alvin, or one of Alvin’s employees, accepts the offer in writing, orally, or by virtue of conduct.
Therefore, Alvin is entitled to tell Bert that the £5,000 was a mistake and that the price should have been £25,000. Alvin offers it to Bert for £25,000 which Bert rejects by virtue of stating a counter-offer - stating that he should be entitled to the lower price.
Therefore, the first and third of the above options are correct.
When Cat comes into the showroom, Alvin offers to sell her the car for £25,000. Cat accepts, however, it is subject to arranging finance which is conditional acceptance and, therefore, not fully valid acceptance. Cat would need to arrange the finance before acceptance would be completed.
Cat also says she will be in touch ‘soon,’ however, she doesn’t define exactly when. Alvin’s offer, therefore, will terminate after a reasonable period of time. This means that the second and fourth options are correct here.
Finally, Del comes in and offers Alvin the full £25,000 asking price, which Alvin accepts. Therefore, we have an offer that has been accepted with consideration, and it is a commercial transaction, so the assumption will always be that there is an intention to create legal relations.
Del has the finance, and therefore a valid, legally binding contract has been created. Should Del fail to come up with the £25,000 by Friday, he would be in breach of the contract, in which case both parties would return to the pre-contract position.
Therefore, the first and fourth options are correct here.
Additional support and resources
If you’re not already studying ACCA LW with us at Kaplan, give yourself the best chance to pass the exam with our ACCA Corporate and Business Law course. With four study methods, you’ll find a course that’s perfect for you.
When studying with Kaplan, you will have access to the Academic Support team via the ‘contact a tutor’ option on your MyKaplan. They are available seven days a week and can support you with any tricky topics via live chat, email, or by requesting a call back.
And, if you have any additional learning needs, get in touch with our inclusion team, who can support you.
Practicing exam-standard questions in timed conditions is essential when preparing for your real exam. Be encouraged to practice questions in the ACCA practice platform when possible.
Alternatively, Kaplan Publishing, an ACCA Content Partner, also offers ACCA Study Texts, Exam Kits, and Pocket Notes - which cover the full syllabus and help you feel exam-confident.