ExpertEasy1 markMultiple Choice
The formation and constitution of business organisationsThe formation and constitution of business organisationsCompany formation
ACCA · Question 35 · The formation and constitution of business organisations
Section A
What is an 'off-the-shelf' company?
Section A
What is an 'off-the-shelf' company?
Answer options:
A.
A company that has been struck off the register.
B.
A company that has already been incorporated and is dormant, ready to be purchased.
C.
A company that only sells retail goods.
D.
A public limited company listed on the stock exchange.
How to approach this question
Identify the term used for pre-registered companies sold by formation agents.
Full Answer
B.A company that has already been incorporated and is dormant, ready to be purchased.✓ Correct
An 'off-the-shelf' company is a pre-registered, dormant company created by a company formation agent. Buyers purchase these to save the time and administrative effort of going through the incorporation process themselves.
Common mistakes
Confusing it with a retail business.
Practice the full ACCA LW — Corporate and Business Law Practice Exam 6
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