1. One of the following companies does NOT have share capital?
2. Which of the following is NOT an advantage of a sole tradership?
3. What is meant by the term ‘veil of incorporation’?
4. In relation to veil of incorporation, requirements of which of the following TWO is a company subject to?
A. The Companies Act of 2006 (CA06).
B. The Companies Act of 2007 (CA07).
C. Small Business, Enterprise and Employment Act 2015 (SBEEA 2015).
D. Small Business, Enterprise and Employment Act 2014 (SBEEA 2014).
5. The minimum share capital of a public limited company is:
6. Which of the following is INCORRECT regarding differences between companies and partnerships?
7. Which term is used to describe the type of company that has its shares traded on a public stock exchange?
8. Z Ltd owes Y Ltd money and is unable to settle them. Select which of the following is an advantage of limited liability of Z Ltd?
9. Which of the following is NOT a feature of a limited company?
10. Which ONE of the following is not a consequence of incorporation of a company?
11. The major advantage of incorporating a business is that,
12. ‘Formed by special Acts of Parliament and is slow and expensive’. Which type of corporations do these features belong to?
13. Which of the following is a disadvantage of sole trader?
14. In which of the following TWO situations an unlimited company need not file a copy of its accounts and reports with the registrar?
A. It is a subsidiary of a limited company.
B. It is a subsidiary of a limited liability partnership.
C. It is the parent company of a limited liability company.
D. It is the parent company of a limited liability partnership.
15. Select the correct statements.
i. A public company can be limited by share or by guarantee.
ii. A private company can be limited by shares or by guarantee.
iii. A private company can be limited or unlimited.
16. Choose the TWO statements that are features of a public limited company only.
A. No maximum amount of capital is required to be invested.
B. Advertising its securities is one way of raising capital.
C. Must obtain trading certificate from Registrar before trading begins.
D. The name of the company Ends with Ltd or limited.
17. When can the veil of incorporation be lifted?
18. Choose the TWO statements that are features of a private limited company only.
A. Requires audit if the turnover is above £5mn.
B. Accounts must be audited.
C. There should be a minimum of one director.
D. An AGM must be held each year.
19. In which of the below TWO situations can a separate personality be ignored?
A. When disqualified directors participates in company management.
B. The corporate structure is being used as a facade (or sham) to conceal the truth.
C. When a trading certificate is obtained before the trading commences in a public company.
D. Disqualified directors not participating in company management.
20. Which TWO of the following correctly describe the requirements for private and public companies to keep accounting records?
A. Private companies must keep their accounting records for three years.
B. Private companies must keep their accounting records for six years.
C. Public companies must keep their accounting records for seven years.
D. Public companies must keep their accounting records for six years.
21. Which ONE of the following is a feature of limited liability partnership only when compared to partnership?
22. Which of the following business forms does the use of the abbreviation ‘Ltd’ after the name of a business indicate?
23. Which TWO of the following are private law actions?
A. A limited partnership
B. A private limited company
C. A limited liability partnership
24. P Ltd, Q Ltd and R Ltd have formed the PQR partnership. If the partnership should become insolvent, which of the following statements is correct?