SQE1 Business Law and Practice Questions

Business Law and Practice is 14–20% of FLK1 and sits in session 1 from January 2027. Practise original single best answer questions on companies, partnerships, finance, insolvency and tax, each with a full explanation.

Take the full timed FLK1 mock exam

170 five-option questions in two timed sessions of 85 (2 hours 33 minutes each), in the January 2027 FLK1 format, with a score by subject and an explanation for every answer.

Or try the free business law drill
  • 52 original business law questions with explanations
  • FLK1, session 1
  • SRA blueprint: 14–20% of FLK1
Free sample · Question 1 of 3FLK1 · Business law

Bramble Tech Ltd, a private company, has 1,000 ordinary shares carrying one vote each: Asha holds 500, Ben 250, Cara 150 and Dev 100. The directors circulate a written special resolution to change the company's name. Within the lapse period, Asha and Cara return signed agreements, Dev returns a form indicating he opposes it, and Ben does not respond at all. Which of the following best describes the outcome?

What our business law questions cover

  • Sole traders, partnerships, LLPs and companies: legal personality, limited liability and how each is formed
  • Incorporation, articles of association and Companies House filings
  • Directors’ duties, powers and conflicts; appointing and removing directors; shareholder approvals
  • Board and general meetings, ordinary, special and written resolutions, and minority shareholder protection
  • Partnership Act 1890: partners’ authority, liability and default terms
  • Debt and equity finance, allotment and pre-emption, fixed and floating charges, and distributions
  • Corporate insolvency and bankruptcy: CVAs and IVAs, administration, liquidation, clawback and the order of payment
  • Income tax, capital gains tax, corporation tax, VAT and business property relief for businesses and their owners
Line drawing of an office building, a company seal, a share certificate and a briefcase

This list is our own summary of the subject, written for practice. The SRA publishes the full Functioning Legal Knowledge list for FLK1 in the SQE1 Assessment Specification.

Drill business law, then sit the full paper

Take the full timed FLK1 mock exam

170 five-option questions in two timed sessions of 85 (2 hours 33 minutes each), in the January 2027 FLK1 format, with a score by subject and an explanation for every answer.

Or try the free business law drill

Rules the questions test most

  1. A company is a separate legal person, so its debts are its own; a shareholder’s liability is limited to any amount unpaid on their shares. Partners in a general partnership have unlimited liability for the firm’s debts.
  2. An ordinary resolution needs a simple majority and a special resolution at least 75%. A private company can pass most resolutions in writing, but not a resolution to remove a director under section 168 or to remove an auditor.
  3. Shareholders can remove a director by ordinary resolution under section 168 of the Companies Act 2006, whatever the articles say. Special notice of 28 days must be given to the company and the director may make representations.
  4. A substantial property transaction between a company and one of its directors needs shareholder approval under section 190 of the Companies Act 2006.
  5. A company can pay a dividend only out of profits available for distribution: accumulated realised profits less accumulated realised losses.
  6. On a liquidation, holders of fixed charges are paid from their charged assets; then come the expenses of the liquidation, preferential creditors, the prescribed part for unsecured creditors, floating charge holders, unsecured creditors and, last, shareholders.

Start the free business law drill · Full FLK1 mock exam

Common questions

How much of FLK1 is Business Law and Practice?

The SRA blueprint gives Business Law and Practice 14–20% of FLK1, about 24 to 34 of the paper’s 170 questions. From January 2027 it is tested in session 1 with Dispute Resolution and Legal Services.

Is tax tested in Business Law and Practice?

Yes. The SRA tests taxation only in Business Law and Practice, Property Law and Practice and Wills and the Administration of Estates. Where a question needs a rate, threshold or relief value, the question gives it to you; you need to know which reliefs exist and when they apply.

Take the full timed FLK1 mock exam

170 five-option questions in two timed sessions of 85 (2 hours 33 minutes each), in the January 2027 FLK1 format, with a score by subject and an explanation for every answer.

Or try the free business law drill

More SQE1 subjects

Subjects, blueprint and format: SRA: SQE1 Assessment Specification (from 1 September 2026) · SRA: SQE1 Functioning Legal Knowledge blueprint (Annex 4) · SRA blog: Understanding SQE1 (24 September 2026), checked November 2026.

Game Assessment Prep is an independent practice site. It is not affiliated with or endorsed by the Solicitors Regulation Authority (SRA) or Kaplan, the SQE assessment provider. Every question is original; none is taken from SRA or Kaplan sample questions or any SQE assessment.