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FLK1 · SQE1 Subject

SQE1 Business Law and Practice: The Complete Revision Guide

Business Law and Practice is one of the largest FLK1 subjects and covers the whole life of a business — from choosing a structure and forming a company, through directors' duties, financing and taxation, to insolvency. It rewards candidates who can apply the Companies Act 2006 and the Partnership Act 1890 to a realistic commercial scenario rather than simply recite rules.

How Business Law and Practice is examined in SQE1

Expect single best answer questions that give you a company or partnership situation and ask what a director, shareholder or partner may lawfully do, what approval is needed, or the tax consequence. Procedural detail (resolutions, filing, approvals) and the default statutory rules are heavily tested.

The 10 Business Law and Practice subtopics

Every area of the Business Law and Practice syllabus, each with its own in-depth guide:

Business structures & starting upSole trader, partnership, LLP and company compared.Company formation & constitutionIncorporation, the articles, and the s.33 contract.Directors: appointment, powers & dutiesThe general duties in ss.171–177 CA 2006.Shareholders & company decision-makingOrdinary vs special resolutions, meetings and written resolutions.Share capital & dividendsAllotment, transfer, maintenance of capital and distributions.Debt finance & securityLoans, debentures, fixed and floating charges, registration.PartnershipsThe Partnership Act 1890 defaults, liability and dissolution.Limited liability partnershipsFormation, members and how LLPs differ from partnerships.Insolvency & administrationLiquidation, administration and the order of priority.Business & personal taxationIncome tax, corporation tax, CGT and VAT essentials.

How to revise Business Law

  • Learn the resolution thresholds cold — ordinary vs special, and when members' approval is needed (e.g. directors' loans, substantial property transactions).
  • Know the Partnership Act 1890 defaults, which apply whenever there is no agreement.
  • Be comfortable moving between income tax, corporation tax, CGT and VAT in a single scenario.

Business Law and Practice SQE1 FAQ

Is Business Law and Practice on SQE1?

Yes. Business Law and Practice is one of the 13 subjects assessed in SQE1, examined in FLK1 through single best answer multiple choice questions.

How is Business Law and Practice examined in SQE1?

Expect single best answer questions that give you a company or partnership situation and ask what a director, shareholder or partner may lawfully do, what approval is needed, or the tax consequence. Procedural detail (resolutions, filing, approvals) and the default statutory rules are heavily tested.

How should I revise Business Law and Practice for SQE1?

Work through each subtopic, understand how it is tested, and practise exam-style questions under time. The LearnSQE course covers every Business Law and Practice subtopic with a video lesson, notes, practice and a topic mock.

Learn Business Law and Practice properly

Video lessons, practice and a topic mock for every subtopic — in the LearnSQE course.

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