ACCA Advanced Taxation (ATX) Practice Exam

Can an individual legally form a consortium?

1. Yes, always

2. No, never

3. Only under certain conditions

4. Yes, but only with government approval

The correct answer is: No, never

An individual cannot legally form a consortium on their own because a consortium typically requires a group of individuals or organizations that come together for a specific purpose, often involving a collaborative project or venture. The essence of a consortium is based on the cooperative endeavor of multiple parties to achieve a common goal, which implies that it cannot be established by a single individual. In this context, the legal framework governing consortia emphasizes the collective nature of the agreement and the shared liabilities and benefits among its members. Therefore, it is not possible for an individual to independently create a consortium; the definition and function of a consortium necessitate the participation of multiple entities. The other options suggest circumstances where an individual might form a consortium or imply that approval from a government authority is required, which does not align with the fundamental concept of what a consortium is.