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Which of the following most accurately describes the ratio decidendi?

A.

It is a statement of law by a court which is binding on all higher courts which are called upon to decide a similar case.

B.

It is a statement of law by a court which is not binding on lower courts which are called upon to decide a similar case.

C.

It is a statement of law by a court which is binding on all lower courts which are called upon to decide a similar case.

D.

It is a statement of law by a court which is binding on all future courts which are called upon to decide a similar case.  

Which ONE of the following is NOT a personal consequence of unethical behavior?

A.

Loss of reputation

B.

Loss of earnings

C.

Loss of job

D.

Loss of life

S is Assistant Management Accountant for a large telecommunications company. S has become aware that the company is paying fees to those government ministers responsible for the regulation of the telecommunications industry and for authorizing large public contracts. S is concerned that this is unethical, so she mentioned it to the Finance Director during her most recent appraisal. The Director seemed amused at her concern and said that such a situation was 'perfectly normal'.

 

Which TWO of the following would it be appropriate for S to do?

A.

Nothing further

B.

Request a further meeting with the Finance Director  

C.

Ask for confirmation in writing from the Director

D.

Resign

E.

Bring the matter to the attention of the Managing Director

F.

Ask for advice from the company's external legal advisors

After the Companies Act 2006, which of the following is correct in relation to a reduction of capital by a public company?

(i) If the reduction results in the company no longer having the authorized minimum capital for a public company, it may be necessary to re-register as a private company.

(ii) The Articles of Association may restrict the company's ability to reduce capital.

(iii) The reduction must be approved by the court.

A.

(i) only

B.

(i) and (ii) only

C.

(ii) and (iii) only

D.

(i), (ii) and (iii)

Which of the following statements is incorrect in relation to written resolutions?

A.

Written resolutions may only be passed by private companies.

B.

In most cases, a written resolution may be used instead of holding a general meeting.

C.

A written resolution can be used in place of an ordinary or special resolution.

D.

A written resolution is only valid when it has been signed by all those who were entitled to attend and vote at company meetings.

A business has been registered under the name ABC Ltd. Which of the following types of business organization must this be?

A.

A partnership.

B.

A public limited company.

C.

A private limited company.

D.

Either a private limited company or a public limited company.

In 2011 Exe Bank plc granted a loan of £200,000 to Wye Ltd secured by a fixed charge over the company's land and a floating charge over all the company's other assets. Wye Ltd remains solvent but has now failed to meet its monthly repayments for three months.

 

Which of the following options are available to Exe Bank plc?

(i) Sue Wye Ltd for breach of contract.

(ii) Appoint an administrator

(iii) Petition for the compulsory winding up of Wye Ltd.

A.

(i) only

B.

(ii) only

C.

(i) and (ii) only

D.

(i), (ii) and (iii)

Which ONE of the following business organizations could be used by Tom to carry on a business consultancy on his own account?

(i) A private company limited by shares

(ii) A sole tradership.

(iii) A limited liability partnership

A.

(i) only

B.

(ii) only

C.

(i) and (ii) only

D.

(i) and (iii) only

Which of the following are situations involving conflicts of interest? Select ALL that apply.

A.

Nina - Receives a large boxful of chocolate delivered to her house from the chocolate factory she is due to audit

B.

Shannon - A department manager at an IT firm who regularly goes out drinking with her team members.

C.

Ben - Regularly works two hours later than he should because his boss constantly gives him large amounts of work to do.

D.

Tyrone - Works standard hours, though is usually unable to do any overtime due to family commitments.

E.

Tina - A personal accountant who actively tries to build a rapport with her clients, though doesn't engage with them outside working hours.

Which ONE of the following is an example of a safeguard in the work environment as opposed to a safeguard created by the profession, legislation or regulation?

A.

Educational, training and experience requirements for entry into the profession

B.

Continuing professional development requirements

C.

Corporate governance regulations

D.

Leadership of a company that stresses the importance of compliance with the fundamental principles

Which of the following statements is correct?

(i) The Articles of Association of a private company limited by shares may be altered by special resolution.

(ii) The Articles of Association of a private company limited by shares may be altered by a written resolution.

(iii) The Articles of Association of a private company limited by shares may be altered by an ordinary resolution.      

A.

(i) only

B.

(ii) only

C.

(i) and (ii) only

D.

(ii) and (iii) only

Which of the following most accurately describes obiter dicta?

A.

It is the legal principle used by a court to decide a case.

B.

It is the legal principle used by a court to decide a case which is binding upon lower courts called upon to decide a similar case.

C.

It is a statement of law made “by the way” which is not binding on future courts which are called upon to decide a similar case.

D.

It is a statement of law made “by the way” which is binding on future courts which are called upon to decide a similar case.

Which of the following statements is correct in relation to the "maintenance of capital" principle?

A.

A company cannot use its share capital which must be set aside as a fund for creditors.

B.

In general, a company can use its share capital for any reason whatsoever, as long as it ensures that there is sufficient remaining to meet the company's debts.

C.

In general, a company is not able to freely return its share capital to its members.

D.

A company cannot use its share capital, and may only return it to its members with the permission of the court.

Which of the following is incorrect in relation to the memorandum of association when registering a company limited by shares?

A.

The memorandum must be in the prescribed form

B.

The memorandum must state the objects for which the company is being registered

C.

The memorandum must state that the subscribers agree to take at least one share each

D.

The memorandum must state that the subscribers wish to form a company under the Companies Act 2006

Which of the following is incorrect in relation to remedies for breach of contract?

A.

Equitable remedies are only available if the common law remedy of damages is inadequate.

B.

A victim of a breach of contract may fail to recover damages if he has failed to mitigate his loss.

C.

Damages cannot be recovered for losses over and above those arising naturally from the breach.

D.

Contracting parties are bound by liquidated damages clauses so long as they are genuine attempts to pre-estimate the loss caused by a breach of contract.