Question 1

Which of the following is not a requirement for a document to be a deed?&#10;A) document being formal&#10;B) making it clear that it is to be a deed&#10;C) been validly executed&#10;D) carries the signatures of all the shareholders

Accepted Answer

The requirement for a document to be a deed does not include the signature of all shareholders. However, the document does need to be formal, make it clear that it is a deed, and be validly executed.

Question 2

A device used for making an impressed mark on a document to authenticate it is called&#10;A) company seal&#10;B) company deed&#10;C) company stamp&#10;D) company certificate

Accepted Answer

A company seal, also known as a corporate seal, is a tool used to emboss documents to signify that they are officially approved or authenticated by the company.

Question 3

Which of the following does not bind the company?&#10;A) deeds&#10;B) contracts between the company and customers&#10;C) contracts between the company and employees&#10;D) shareholder agreements

Accepted Answer

Shareholder agreements are contracts between shareholders and do not directly bind the company itself. They govern the relationship between the shareholders, not the company's operations or obligations.

Question 4

Who can enter into contracts on behalf of the company?&#10;A) directors&#10;B) distributors&#10;C) shareholders&#10;D) creditors

Accepted Answer

Directors are authorized to enter into contracts on behalf of the company as they are responsible for managing the affairs of the company. Distributors, shareholders, and creditors do not have the authority to enter into contracts on behalf of the company.

Question 5

The authority that one can assume a person purporting to be an agent of the company has, based on a representation made by someone authorised by the company, is called&#10;A) actual authority&#10;B) implied authority&#10;C) false authority&#10;D) ostensible authority

Accepted Answer

The authority that is assumed by a person claiming to be an agent of the company based on a representation made by someone authorised by the company is called ostensible authority. This means that the person may not have actual or implied authority, but their representation or appearance of authority leads others to believe they are authorized to act on the company's behalf.

Deck 10: Homicide