Section A

What is an 'off-the-shelf' company?

Answer options:

A company that has been struck off the register.

A company that has already been incorporated and is dormant, ready to be purchased.

A company that only sells retail goods.

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.

Question 34 All questions Question 36

Practice the full ACCA LW — Corporate and Business Law Practice Exam 6

60 questions · hints · full answers · grading

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