Day: May 15, 2025

Accounting Multiple Choice Question – 15 May 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Big Staffie plc has just joined the FTSE 350.

A business consultant called Keith has made the following two statements about the company and the UK Corporate Governance Code.

Statement 1 – As Big Staffie plc is in the FTSE 350, the Listing Rules mean that the Code applies so the company must not depart from any of its requirements.

Statement 2 If Big Staffie plc went on to join the FTSE 100, compliance with the Code would be a statutory requirement.

Are these statements made by Keith  true or false?

Select ONE answer:

  1. Statement 1 – True and Statement 2 – False
  2. Statement 1 – False and Statement 2 – True
  3. Statement 1 – True and Statement 2 – True
  4. Statement 1 – False and Statement 2 – False

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 4

  1. Not correct
  2. Not correct
  3. Not correct
  4. Correct == > The Code applies to all FTSE 350 companies by virtue of the Listing Rules. While they are expected to comply with the main principles, non-compliance with supporting principles and provisions is allowed provided it is properly explained. Even in the FTSE 100 the Code is applied via the Listing Rules, not statute.

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