Accounting Multiple Choice Question – 23 March 2025

Staffie plc employs directors of finance, human resources and legal services, as well as a company secretary.

The company is having operational problems which are delaying its completion of a key industrial project.

If the project misses its deadline Staffie plc may suffer heavy penalties under the terms of its sales contract with the ultimate end customer.

Part of the delay has been caused by strikes due to bad industrial relations with both Staffie’s own employees and the sub-contractors, but Staffie plc is unsure whether the penalties included in the contract will come into effect given this primary reason.

Identifying whether the penalties are likely to come into effect is the role of Staffie plc’s?

Select ONE answer:

1. Director of finance
2. Director of human resources
3. Director of legal services
4. Company secretary

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct == > Enforcement of contracts is clearly a legal matter requiring the attention of the company’s director of legal services.
4. Not correct

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