ethics civics MCQ #1084

Fraudulent trading may be:

ethics civics MCQ #1084

  1. Question 1

    Q1. Fraudulent trading may be:

    • A) a criminal offense committed only by directors of a limited company
    • B) a civil and a criminal offense committed by an employee
    • C) a civil and a criminal offense committed only by directors of a limited company
    • D) a civil offense committed by an employee

    Answer: a civil and a criminal offense committed only by directors of a limited company

    Explanation: Under UK law, fraudulent trading is both a civil and criminal offense, but liability is restricted to directors of a limited company who knowingly carried on business to defraud creditors.