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100+ Free CILEX CPQ A8 Business & Employment Law Practice Questions
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2026 Statistics
Key Facts: CILEX CPQ A8 Business & Employment Law Exam
100
Practice Questions
OpenExamPrep
50%
Passing Score
CILEX CPQ standard
£350–£450
Assessment Fee
CILEX CPQ fee schedule
2h 30m
Exam Duration
CILEX CPQ Advanced Stage
120 hours
Module TQT
CILEX CPQ specification
CILEX CPQ A8 Business and Employment Law is an Advanced Stage module assessed via an official online automated & scenario case study exam. The pass mark is 50% and exam fees range from £350 to £450. Our practice bank provides an English-language MCQ study adaptation containing 100 scenario-based questions covering business structures & partnerships, company law & directors' duties, employment contracts, unfair dismissal & redundancy, and Equality Act discrimination claims.
Sample CILEX CPQ A8 Business & Employment Law Practice Questions
Try these sample questions to test your CILEX CPQ A8 Business & Employment Law exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1Under section 24(1) of the Partnership Act 1890, what is the default rule regarding partner entitlement to profits in a general partnership, in the absence of an express agreement?
A.Partners are entitled to share equally in the capital and profits of the business
B.Profits must be distributed in proportion to each partner's original capital contribution
C.Senior partners are entitled to 60% of profits, with junior partners sharing the remainder
D.Profits are retained by the partnership until a formal dissolution occurs
Explanation: Section 24(1) of the Partnership Act 1890 provides that, subject to any agreement express or implied between the partners, all partners are entitled to share equally in the capital and profits of the business, and must contribute equally towards losses. This default rule applies regardless of unequal initial capital contributions unless a partnership agreement states otherwise.
2Under section 9 of the Partnership Act 1890, what is the liability of partners for debts and obligations incurred by the firm while they are partners?
A.Joint liability
B.Several liability only
C.Limited liability up to £10,000
D.No personal liability if the debt was incurred by another partner
Explanation: Section 9 of the Partnership Act 1890 establishes that every partner in a firm is liable jointly with the other partners for all debts and obligations of the firm incurred while they are a partner. Joint liability means that creditors can bring one action against all partners collectively to recover contractual debts.
3Where must a Limited Liability Partnership (LLP) be registered to obtain legal personality in England and Wales under the Limited Liability Partnerships Act 2000?
A.Companies House
B.The High Court of Justice
C.The Law Society
D.HM Revenue and Customs
Explanation: Under the Limited Liability Partnerships Act 2000, an LLP is incorporated by submitting incorporation documents to the Registrar of Companies at Companies House. Incorporation creates a body corporate with legal personality separate from its members.
4What is the primary feature regarding the personal financial liability of members of an LLP for the LLP's debts?
A.Members generally have limited liability and are not personally liable for the LLP's debts beyond their agreed capital contribution
B.Members have joint and several unlimited personal liability for all LLP debts
C.Members are personally liable for up to 50% of total LLP liabilities
D.Designated members have unlimited liability, while ordinary members have zero liability
Explanation: An LLP incorporated under the Limited Liability Partnerships Act 2000 is a separate legal entity. Its members enjoy limited liability, meaning they are not personally liable for the LLP's debts beyond their agreed capital contributions or guarantees, subject to specific insolvency clawback provisions.
5Under section 24(4) of the Partnership Act 1890, what is the default position regarding a partner's entitlement to interest on initial capital subscribed?
A.A partner is not entitled to interest on subscribed capital before the ascertainment of profits
B.A partner is automatically entitled to 5% per annum interest on capital before profits are calculated
C.A partner is entitled to interest at the statutory judgment rate of 8% on all capital
D.A partner receives interest only if the partnership operates at a loss
Explanation: Section 24(4) of the Partnership Act 1890 provides that a partner is not entitled, before the ascertainment of profits, to interest on the capital subscribed by them. By contrast, under s.24(3), an advance or loan made beyond agreed capital earns 5% interest per annum as a default rule.
6How may a partnership entered into for no fixed duration (a partnership at will) be dissolved by a partner under section 26(1) of the Partnership Act 1890?
A.By giving notice of dissolution to all the other partners
B.By obtaining a High Court injunction
C.By giving 3 months' written notice to Companies House
D.By obtaining unanimous consent of a majority of creditors
Explanation: Under section 26(1) of the Partnership Act 1890, where no fixed term is agreed for the partnership, any partner may determine (dissolve) the partnership at any time by giving notice of their intention to do so to all the other partners. Unless dated otherwise, dissolution takes effect from the date notice is given.
7A partner in a commercial trading firm orders computer equipment in the firm's name. Unknown to the seller, the partnership agreement prohibits individual partners from placing orders above £1,000. Is the firm bound by the £5,000 contract under section 5 of the Partnership Act 1890?
A.Yes, because ordering computer equipment is an act for carrying on in the usual way business of the kind carried on by the firm, and the seller had no notice of the restriction
B.No, because any express restriction in a partnership agreement automatically voids unauthorized third-party contracts
C.No, because contracts over £1,000 require written consent from all partners under statutory rule
D.Yes, but only up to the £1,000 threshold, with the remaining £4,000 unrecoverable
Explanation: Under section 5 of the Partnership Act 1890, every partner is an agent of the firm and their acts in carrying on in the usual way business of the kind carried on by the firm bind the firm, unless the partner has no authority and the third party knows of the lack of authority or does not know or believe them to be a partner. Because ordering computers is usual business and the seller was unaware of the internal £1,000 limit, the firm is bound.
8Three partners in a firm wish to expel a fourth partner following a dispute. The partnership is governed entirely by the default rules of the Partnership Act 1890. Can the majority expel the fourth partner under section 25 of the Act?
A.No, because section 25 provides that no majority of partners can expel any partner unless a power to do so has been conferred by express agreement between the partners
B.Yes, provided a 75% majority votes in favor of expulsion
C.Yes, provided reasonable written notice of 28 days is given to the partner
D.No, unless the expulsion is approved by an order of the High Court
Explanation: Section 25 of the Partnership Act 1890 states explicitly that no majority of the partners can expel any partner unless a power to do so has been conferred by express agreement between the partners. Under default rules, the majority has no power of expulsion; their remedy would be to dissolve the partnership.
9Under the Limited Partnerships Act 1907, what is the consequence if a limited partner takes part in the management of the partnership business?
A.The limited partner becomes liable for all debts and obligations of the firm incurred while taking part in management, as if they were a general partner
B.The partnership is automatically converted into a private limited company
C.The limited partner commits a criminal offence punishable by a fine
D.The acts of the limited partner are completely void and cannot bind the firm
Explanation: Under section 6(1) of the Limited Partnerships Act 1907, a limited partner shall not take part in the management of the partnership business. If they do take part in management, they become liable for all debts and obligations of the firm incurred while so taking part, as if they were a general partner.
10A new partner joins an existing general partnership. Under section 17(1) of the Partnership Act 1890, is the incoming partner liable for debts incurred by the firm prior to them becoming a partner?
A.No, an incoming partner does not thereby become liable to the creditors of the firm for anything done before they became a partner
B.Yes, an incoming partner automatically assumes joint liability for all past debts of the firm
C.Yes, but only if the creditors register their claims with the High Court within 30 days
D.No, unless the firm has fewer than three remaining partners
Explanation: Section 17(1) of the Partnership Act 1890 provides that a person who is admitted as a partner into an existing firm does not thereby become liable to the creditors of the firm for anything done before they became a partner. To become liable for existing debts, a tripartite novation agreement involving the creditors, old partners, and new partner is required.
About the CILEX CPQ A8 Business & Employment Law Practice Questions
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