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ICAEW ACA Business Law — Information & Free Practice

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About ICAEW ACA Business Law

ICAEW ACA Business Law · GB

Key exam facts

Provider
Institute of Chartered Accountants in England and Wales (ICAEW), the ACA examination owner and assessment provider.
Format
On-demand computer-based examination using multiple-choice, multi-part multiple-choice and multiple-response questions.
Exam questions
Total questions: 50.
Time limit
90 minutes of examination time. An optional five-minute post-exam survey, included in appointment length for exams scheduled after 1 March 2026, is not examination time; access arrangements may change individual timing.
Passing score
55% pass mark.
Exam fee
The official fee schedule published at 30 October 2026 quotes GBP £99 per Certificate Level exam entry for 2026, payable on registration. Fees are year-specific; this figure is not represented as a verified 2027 tariff. Tuition, learning materials and annual student fees are separate.

Topics covered

  • Introduction to legal principles (10%)

    • English legal system
    • a. recognise the relationships and interaction between civil and criminal law, legal principles, legislation, case law, ethics and ethical codes;
    • b. outline the structure of the English system of courts;
    • c. explain the role and benefi ts of alternative dispute resolution;
    • d. explain the purpose and impact of the European Convention on Human Rights and the Human Rights Act 1998; and
    • International law and regulations
    • e. recognise situations when laws and regulations other than English law may be applicable to an organisation, including: • international regulation of trade between organisations (International Chamber of Commerce (ICC) Incoterms, the UN Convention on Contracts for the International Sale of Goods); and • Sharia law relating to Islamic fi nance.

  • The impact of civil law on business and professional services (30%)

    • Contract
    • a. recognise when a legally binding contract exists between two parties and how a contract may be enforced;
    • b. identify the circumstances under which a contract can be terminated and possible remedies for breach of contract;
    • Agency
    • c. identify the role of agents, their duties and rights, and their authority to enter contracts on behalf of a principal;
    • d. identify the nature of a partnership and the authority given to partners;
    • Negligence and liability
    • e. identify instances and consequences of negligence (particularly negligent misstatement) in a given scenario; and
    • f. identify instances and consequences of vicarious liability in a given scenario.

  • Company and insolvency law (40%)

    • Incorporation
    • Financing and capital
    • Ownership and management
    • Insolvency
    • a. identify the differences between unincorporated businesses (sole traderships and partnerships), limited liability partnerships and companies, show the advantages and disadvantages of incorporation and recognise the circumstances when the veil of incorporation can be lifted;
    • b. identify the procedures required to form a registered company or a limited liability partnership, including any practical considerations, and the nature and contractual force of a company’s memorandum and articles of association and identify the advantages and disadvantages of off-the-shelf companies;
    • c. explain the role and duties of the promoter of a company and the impact of contracts made before the company’s incorporation;
    • d. identify the administrative consequences of incorporation or the formation of a limited liability partnership including requirements regarding statutory books, accounts and meetings;
    • e. explain the procedures for the issue of shares, including issues at a premium or a discount and pre-emption rights;
    • f. outline the legal processes by which companies raise equity, capital and other long-term fi nance, including placings and initial public offerings;
    • g. identify the requirements of the Companies Act 2006 in respect of companies’ statutory accounts and audit, including the exemptions for small and medium-sized companies and micro-entities;
    • h. explain the legal requirements for aspects of capital maintenance including: • reduction of capital • redemption and purchase of a company’s own shares • fi nancial assistance for the purchase of a company’s own shares • distribution of profi ts;
    • i. explain how shares may be transferred;
    • j. recognise how a shareholder can infl uence the management of a company through meetings and resolutions, including shareholders’ rights to requisition a meeting;
    • k. identify the various statutory rights of shareholders to challenge the management of the company under the Companies Act 2006 and the Insolvency Act 1986;
    • l. identify the rights and duties which a member of a limited liability partnership possesses;
    • m. specify the ways in which a director or a company secretary may be appointed and removed, including disqualifi cation of directors;
    • n. identify directors’ duties, including responsibility for maintaining sustainable business practices, explaining the consequences of any major breach;
    • o. identify the powers of directors and the company secretary and in what circumstances they will bind the company in a contract with third parties;
    • p. specify the nature of fi xed and fl oating charges, the rationale for the selection of a particular type of charge and the procedures for registering them;
    • q. identify the nature and function of: • company voluntary arrangements • administration orders • receivership • compulsory and voluntary liquidation (including relevance of secured debt); and
    • r. identify the main impact of insolvency procedures, including: the principal means of termination of companies or other business entities the priorities on a liquidation of the distribution of assets including rights of creditors and employees (including secured assets) the avoidance of charges.

  • The impact of criminal law on business and professional services (10%)

    • a. identify offences and their consequences under the anti-money laundering legislation, identify the obligations on professional accountants to detect and help prevent money laundering, and select appropriate courses of action to protect professional accountants from criminal liability;
    • b. identify instances and consequences of bribery;
    • c. identify instances and consequences of fraud in a given scenario, including: • the effect of the Fraud Act 2006 • threats to consumers through cybercrime • offences committed under the Computer Misuse Act 1990 • fraudulent trading • insider dealing; and
    • d. identify circumstances where professional accountants will be protected from dismissal and victimisation if they raise concerns about malpractice in the workplace.

  • The impact of law in the professional context (10%)

    • Information and its legal environment
    • a. identify the key requirements of the Data Protection Act 2018 on the use of personal information and how the Act can affect the manner in which information systems are used by businesses;
    • Employment law
    • b. identify who is an employee and explain the main legal consequences of employment status;
    • c. identify the key features of employment contracts and recognise circumstances in which an employment contract may be terminated and the consequences arising;
    • d. identify when dismissal constitutes wrongful dismissal or unfair dismissal and the remedies available;
    • e. identify the circumstances where an employee can claim a statutory redundancy payment; and
    • f. identify the responsibilities of employers under the Equality Act 2010, the Modern Slavery Act 2015 and sustainability regulations.

How to prepare

Work through the topics, read the explanation after each answer, and revisit the areas where you miss questions. Use the official outline and reference materials below to guide your study.

These independent practice questions are not actual exam items and do not guarantee a passing result.

Frequently asked questions

What is the exam format?

On-demand computer-based examination using multiple-choice, multi-part multiple-choice and multiple-response questions.

How many questions are on the exam?

Total questions: 50.

How long is the exam?

90 minutes of examination time. An optional five-minute post-exam survey, included in appointment length for exams scheduled after 1 March 2026, is not examination time; access arrangements may change individual timing.

What is the passing score?

55% pass mark.

How much does the exam cost?

The official fee schedule published at 30 October 2026 quotes GBP £99 per Certificate Level exam entry for 2026, payable on registration. Fees are year-specific; this figure is not represented as a verified 2027 tariff. Tuition, learning materials and annual student fees are separate.

Official sources and references

Confirm current exam arrangements with the exam provider.