F4(GLO) Exam tips for june 2011 [ATC, EXP]

EXP Tips

• Alternative forms of dispute resolution – arbitration/mediation
• UNCISG – offer/counter offer/invitation to treat
• UNCISG – main obligations seller
• Letters of credit/letters of comfort
• Insider dealing/money laundering
• Separation of powers – legislature/executive/judiciary
• Different types of partnership – general/limited/LLP
• Maintenance of capital
• Directors agency powers

ATC

Exam Tips – June 2011 Session
The exam tips set out below are not intended as a guaranteed or definitive list of
the topics that will be contained in the forthcoming examination paper and should
not be construed as such. What follows is presented as an additional resource for
students’ preparation, based on knowledge and past experience of ACCA
examinations. ATC International accepts no liability where final examination papers
differ from these suggestions.
Paper: F4GLO (Corporate and Business Law – Global variant)
By Deborah Lloyd
The F4 paper contains 10 compulsory 10-mark questions, testing knowledge and
understanding across the whole syllabus. Questions 1-7 are knowledge-based
questions, and Questions 8 – 10 are scenario-based problem questions calling for
application of legal principles. The law relating to Legal Systems is examined in
knowledge-based questions. The other syllabus areas can be examined in either
(or both) knowledge and problem-based forms.
There is no fool proof method for predicting the exact contents of the examination.
Only the Examiner himself knows what will be in the paper, and he repeatedly
warns against ‘question spotting’. The tips that follow suggest key topics which we
consider to be likely subjects for examination at this sitting.
The Examiner favours English law as the model for looking at business
organisations – agency, partnerships and company law. Bear in mind that in the
present financial environment business funding, good governance, insolvency
and the rights of creditors remain particularly topical.
Exam Tips
• 1 Question 1 and often also question 2 is always based on the nature of law, its
creation, interpretation and enforcement. Possible areas for testing at this
sitting are the different forms and sources of law that operate in states (e.g.
codified Civil Law; religious law, etc); or the various international regulatory,
legioslative and law enforcement organisations (eg UN, ICC, OECD etc).
Look also at the role of the parties and arbitrators in arbitration
proceedings using the UNCITRAL Model Law on Arbitration.
Exam Tips – June 2011 Session
• 2 You can expect three or four questions on international business transactions
and methods of payment, with two or three being knowledge-based and one
problem-based. Be ready to answer a question about aspects of the creation of
contracts under the United Nations Convention on Contracts for the International
Sale of Goods (‘CISG’) – offer, acceptance, rejections and revocation by
the offeror or offeree are possible topics this time
• 3 You should be prepared to explain the rights and duties of buyer or seller
if the contract fails, in order for them to access available remedies under CISG.
• 4 Questions 4, 5 and 6 are usually about business organisations. There may be
a question on partnership law. Be aware of the different forms of
partnership organisation, and the liability of business partners for
business debts and obligations
Also look at the separate legal personality, and the matters to be considered
by the company promoters.
• 5 Corporate finance is always important: look particularly at the nature of
shares and debentures.
• 6 Corporate management and governance are central to the syllabus. Be
ready to explain and apply the rules relating to appointment removal and
duties of directors or auditors. Meetings and resolutions should also be
considered.
• 7 Question 7 frequently addresses the management of transport, risk and
payment in international business transactions. Be ready to answer a question
on INCOTERMS 2010 (note that these vary slightly from INCOTERMS
2000 – the ICC website at http://www.iccwbo.org/incoterms/ has links)
• 8 Questions 8, 9 and 10 are always problem-based, requiring you to analyse a
scenario and often to advise the parties. Question 8 is likely to be about
international business transactions (see tips 2 and 3 above).
• 9 Insolvency proceedings and the rights of creditors could form the basis of
a knowledge or problem-based question.
• 10 Business mismanagement and fraudulent activity is another very topical
subject. Consider market abuse, fraudulent and wrongful trading and their
consequences.
Exam Tips – June 2011 Session
Exam Technique
Don’t forget the following advice while in the exam:
Use the Reading and Planning Time before the start of the examination to make
sure that you understand what each question is about, and to jot down key
thoughts and reminders on the examination paper, to refer back to when you plan
and write each answer. For each part of Questions 1-7 highlight the instruction
(“define”, “explain”, “describe”, etc) as a guide to how you should write and the
content to be addressed.
Do this quickly, in a couple of minutes, without thinking about the answer points to
these. Then move on to Questions 8-10 – again highlighting instruction and
content. Now re-read these in turn* and read the scenario – underline or sideline
the information relevant to answering each part. * Start with the question(s) that
has a single requirement for 10 marks – since this will be the one which requires
most planning. Jot down any thoughts or reminders (as single words or
annotations only) on the question paper. If you have time, start planning any of
Question 1-7 which have 10 mark requirements.
Remember! 15 minutes is not all the time you should expect to spend in reading,
planning and thinking!
Answer ALL 10 questions, being sure to number them in the answer book as
instructed. Keep each answer together – so if you skip a part (to come back to
later) leave space for this. If you do go back to a part and have run out of space
cross reference where it goes to!
Allocate your time carefully between questions so that you do not become
bogged down in a handful at the expense of others. Remember that each question
carries 10 marks: the scenario questions are worth the same as the knowledge
questions. You should allow an average of 18 minutes for each question, no more
than 20 minutes nor less than 15 on any one in order to do yourself justice. On
any one question you might need to spend another five minutes or more thinking
and planning. But look for example at Q4 of the June 2010 exam which had three
parts of 3 or 4 marks each – that means just three or four mark-earning sentences
for each part. As a general rule, the more the requirement is “broken down” for
you into parts – the less time you need to spend planning.
Exam Tips – June 2011 Session
Do not overrun on time trying to find the last, more difficult one or two marks of
a question at the expense of getting the straightforward six or seven marks in
another question. Many successful candidates leave the question(s) which they
consider most challenging until last, to make sure they pick up the ‘easier’ marks
on the other questions first. But you must attempt those more challenging
questions too!
Answer the question that has been set, do not reinterpret it – for example, if it
refers to buyers’ rights, do not give detailed answers about sellers’ rights; if it asks
about partnerships, do not give answers based on company law.
Be sure to give authority for your answers. If a rule you describe or apply
derives from statute, from a model law, from an international code or from a
judicial precedent, say so. If you can remember the particular statutory reference
or case name, quote it; if not, refer to it generally. There is usually no benefit in
quoting detailed case facts but you may need to make comparisons or distinctions
when you apply case law in scenario questions.
Presentation is important! Use short headings and sub-heading to give your
answer visual impact – and use a ruler to underline them. Remember your script is
going to be scanned – you must write in black! Try your writing out on a friend or
colleague before the exam – if they have problems reading some words you may
need to take care in forming some letters. “Dotting the ‘i’ and crossing the ‘t’” may
sound pedantic – but consider that not doing so may make them look like ‘l’.
Good Luck!
In addition to noting the guidance set out above, students should make use of
ACCA past examination papers, pay close attention to articles published in Student
Accountant this year and should read the Examiner’s review of the last examination
session at http://www.accaglobal.com/students.

Source – PQ magazine
https://www.pqaccountant.com/

good luck with exam!
ansi