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1. Who should check that a company's financial statements provide a true and fair view of its financial performance?
A) The auditor and shareholders
B) The company
C) Shareholders
D) The company and shareholders
E) The auditor
F) The auditor and the company
2. Which of the following is correct in relation to Section 14 of the Sale of Goods Act 1979 which implies a term into contracts for the sale of goods that the goods supplied will be of "satisfactory quality." (i) A breach of Section 14 enables the innocent buyer to cancel the contract and claim damages.
(ii) The parties to a contract for the sale of goods can choose to exclude Section 14.
(iii) Section 14 applies to contracts for the sale of new goods only and does not apply to sales of second- hand goods
A) (i) only
B) (ii) only
C) (i) and (ii) only
D) (ii) and (iii) only
3. X, Y and Z are the only shareholders in XYZ Ltd each holding 1,000 ordinary £1 shares. X is the only director of the company. The articles of association of XYZ Ltd provide that "in the event of any proposal to dismiss a director by ordinary resolution, the votes of the director are to count 3 times." Which ONE of the following is CORRECT?
A) The provision in the articles is void as it effectively means that X is irremovable as a director of XYZ Ltd.
B) The clause in the articles cannot be used by X as it is not an ordinary membership right.
C) The company would be able to pass a special resolution removing the provision in the articles and then dismiss X by passing an ordinary resolution.
D) X will be able to rely on the provision in the articles and outvote any proposal to dismiss him as a director.
4. Which of the following statements is incorrect in relation to a public company limited by shares?
A) The company must have at least one shareholder.
B) The company must ensure that its company secretary is properly qualified whereas a private company need not have a company secretary.
C) The company must have issued at least £50,000 of shares.
D) The company must have at least one director.
5. Which of the following is correct?
(i) A contract for the sale of land must be in writing.
(ii) A consumer credit agreement must be in writing.
(iii) A contract of employment must be in writing.
A) (i) only
B) (i), (ii) and (iii)
C) (i) and (ii) only
D) (i) and (iii) only
Solutions:
| Question # 1 Answer: F | Question # 2 Answer: A | Question # 3 Answer: D | Question # 4 Answer: D | Question # 5 Answer: C |
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