Question：Which of the following is the most accurate difference between fraudulent and wrongful trading?
A. Fraudulent trading involves the company trading even though there is little prospect of it avoiding insolvent liquidation.
B. Fraudulent trading involves the directors intending to deceive the creditors.
C. Wrongful trading involves the directors intending to deceive the creditors.
D. Wrongful trading is otherwise the same as fraudulent trading except it is a civil offence and requires a lower standard of proof to convict.
The correct answer is: Fraudulent trading involves the directors intending to deceive the creditors.
Question：Which of the following statements describe the regulatory governance framework for UK companies?
A. Legal and non-legal.
B. Legal only.
C. Voluntary.
D. Non-legal only.
The correct answer is: Legal and non-legal.
Some rules on directors' duties and other elements concerning the management of companies can be found in the Companies Act and the UK Corporate Governance Code.
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