Business Law and Ethics
Legal foundations
Understand the elements of a valid contract: offer, acceptance, consideration, intention to create legal relations, capacity and legality. Know the distinction between terms and representations, conditions and warranties, and the remedies for breach: damages, specific performance and injunction. Revise negligence elements: duty, breach, causation and damage.
Business structures and governance
Know the characteristics of sole traders, partnerships, companies and trusts, including liability, continuity and taxation implications. Understand directors' duties: care and diligence, good faith, proper purpose, avoiding conflicts, and preventing insolvent trading. Know the concept of separate legal personality and when the corporate veil may be lifted.
Ethics
Apply the fundamental principles of integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour. Know the threats framework: self-interest, self-review, advocacy, familiarity and intimidation, and the safeguards available. Understand the conceptual approach rather than a rules-only mindset.
Traps
Questions present a conflict of interest and expect identification of the specific threat and safeguard, not a general statement that it is unethical. Watch for confidentiality exceptions such as legal disclosure requirements, and for the distinction between actual and perceived conflicts.
Worked rule of thumb
Use a four-step structure for ethical scenarios: identify the facts and stakeholders, identify the threat category, evaluate whether safeguards reduce it to an acceptable level, then decide and document the action. If the threat cannot be reduced, decline or escalate.