Question 1

Section B - Scenario 3

GreenCanopy is a newly formed Non-Governmental Organisation (NGO) dedicated to reforestation. The founders want to incorporate the organisation to protect themselves from personal liability, but they do not intend to distribute any profits to members; all funds will be reinvested into planting trees.

Which of the following is the most appropriate business vehicle for GreenCanopy?

Accepted Answer

Identify the corporate structure specifically designed for non-profit organisations that require limited liability.

Question 2

What mistakes do candidates make on this ACCA question?

Accepted Answer

Choosing a company limited by shares, which is designed for commercial, profit-distributing enterprises.

How to approach this question

Full Answer

Common mistakes

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

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