Question 1

Corporate Governance means&#10;A) the system by which companies are directed and controlled&#10;B) the system by which businesses are governed&#10;C) the system by which markets are regulated&#10;D) another name for shareholder ownership

Accepted Answer

Corporate Governance refers to the set of processes, principles, and values that ensure that a company is directed and controlled in a way that is ethical, responsible, and accountable to its stakeholders. It includes the relationships between a company's management, its board of directors, its shareholders, and other stakeholders. Therefore, choice A is the most suitable option.

Question 2

The UK Corporate Governance Code applies to&#10;A) all companies&#10;B) companies listed in the main market of the LSE&#10;C) multinational companies&#10;D) all companies divided by shares

Accepted Answer

The UK Corporate Governance Code applies to companies listed in the main market of the London Stock Exchange (LSE). It is a set of principles and guidelines aimed at improving corporate governance practices and increasing shareholder value. Therefore, option B is the best choice as it accurately reflects the scope of the code.

Question 3

The case of Salomon v Salomon (1897) AC 22 is important because it&#10;A) establishes the notion of private limited liability&#10;B) legitimizes corporate fraud&#10;C) establishes the notion of public limited liability&#10;D) makes a distinction between single member and multi-member companies

Accepted Answer

The case of Salomon v Salomon (1897) AC 22 established the notion of private limited liability, which means that a company is a separate legal entity from its shareholders and directors, and therefore has its own liabilities, assets and legal standing. This is a fundamental principle of modern company law and is still relevant today. The case did not legitimize corporate fraud, establish the notion of public limited liability, or make a distinction between single member and multi-member companies.

Question 4

Which of the following is not a type of company&#10;A) private limited company&#10;B) unlimited company&#10;C) European private company&#10;D) limited partnership

Accepted Answer

Limited partnership is a type of partnership, not a type of company.

Deck 1: Introduction to Criminal Law