Question 1

A promoter can also become&#10;A) a shareholder of the company&#10;B) a director of the company&#10;C) an employee of the company&#10;D) all of the above

Accepted Answer

A promoter can become a shareholder, director or employee of the company, as they are the individuals who conceive the idea of a business venture and take the necessary steps to establish it. As a result, they are closely involved in the management and decision-making process of the company, making it likely for them to take on multiple roles within the organization.

Question 2

It is possible to re-register a company from&#10;A) private to public&#10;B) public to private&#10;C) unlimited to limited&#10;D) all of the above

Accepted Answer

All of the above options are possible.

Question 3

Who is a promoter?&#10;A) the marketing manager of a company&#10;B) the executive manager of the company&#10;C) the person who sets up the company&#10;D) the person who dissolves the company

Accepted Answer

A promoter is the person responsible for setting up a company, including its initial organization, financing, and development until it is ready to commence business operations.

Question 4

What is meant by a 'phoenix company'?&#10;A) a company that sells birds&#10;B) a company that is re-established after insolvency&#10;C) a successful company&#10;D) an unsuccessful company

Accepted Answer

A phoenix company is a company that is re-established after insolvency. It is often achieved by creating a new company that buys the assets of the old company and continues the business operations.

Question 5

A company cannot use a business name&#10;A) showing a connection with a government authority&#10;B) which includes 'sensitive words'&#10;C) suggesting that the company is of a particular type&#10;D) all of the above

Accepted Answer

All of the given options are correct. A company cannot use a business name that shows a connection with a government authority, includes 'sensitive words', or suggests that the company is of a particular type as it may mislead the public or cause confusion.

Question 6

The Secretary of State has the right to ask a company to change its name in all but one of the following circumstances. Which one is that?&#10;A) the company has a name similar to another&#10;B) the company has supplied misleading information&#10;C) the company's exemption from using ltd has expired&#10;D) the Secretary disapproves of the choice of name

Accepted Answer

The Secretary of State does not have the right to ask a company to change its name simply based on disapproval of the choice of name. The other options listed (similar name to another, supplied misleading information, and expired exemption from using "ltd") are all valid reasons for the Secretary of State to request a name change.

Question 7

Which of the following company characteristics is not subject to change?&#10;A) name&#10;B) membership&#10;C) number&#10;D) address

Accepted Answer

The company number is a unique identifier assigned to a company upon incorporation and does not change throughout the life of the company.

Question 8

Which of the following is not a required document in an application to register a company?&#10;A) memorandum of association&#10;B) articles of association&#10;C) CVs of proposed directors&#10;D) application form

Accepted Answer

While it is common practice to include CVs of proposed directors in a company registration application, it is not typically a legally required document. The memorandum and articles of association and the application form, however, are required documents in most jurisdictions.

Question 9

What is a business name?&#10;A) a name by which a company does business&#10;B) the registered name of a company&#10;C) the name of the chief executive of the company&#10;D) the name any business uses (incorporated or not) in the marketplace

Accepted Answer

The answer of What is a business name?&#10;A) a name...

Question 10

What is a pre-incorporation contract?&#10;A) a contract made with the company before it came into existence&#10;B) a contract made with the company after it came into existence&#10;C) a contract made by an unincorporated association&#10;D) a contract made by a company while setting up a subsidiary

Accepted Answer

A pre-incorporation contract is a contract made with a company before it comes into existence. It is also known as a pre-formation contract or pre-registration contract. The contract may be made by a person or group of people who intend to incorporate the company but have not yet done so. Once the company is incorporated, it may adopt the contract and be bound by its terms.

Deck 4: Strict Liability