This question requires candidates to consider, fraudulent trading under s.213 Insolvency Act 1986, and wrongful trading under s.214 Insolvency Act 1986.
8–10 marks A good analysis of the scenario with a clear explanation of the law relating to fraudulent and wrongful trading, together with an accurate application of that law.
5–7 marks Fair to good understanding of the situation but perhaps lacking in detail or reference to the statute.
3–4 marks Weak answer lacking in knowledge or application, with little or no reference to the provisions of the Insolvency Act 1986.
1–2 marks Little knowledge of the appropriate legal principles.
0 marks No knowledge whatsoever of the substance of the question.