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Viewing page 13 out of 14 pages

Viewing questions 181-195 out of questions

Questions # 181:

Which of the following is incorrect in relation to the remedy of liquidated damages?

Options:

A liquidated damages clause will be void if it amounts to a penalty clause.

A liquidated damages clause will apply where it is a genuine attempt to pre-estimate the loss caused by a breach of contract.

If a liquidated damages clause is held to be void, the innocent party cannot claim on a quantum meruit basis.

If a liquidated damages clause is found to be reasonable, the amount specified must be claimed, even if it is less than the actual loss caused by the breach.

Questions # 182:

Which of the following terms can be defined as follows?

"...the way an organization manages its relationships"

Options:

Ethics

Social responsibility

Corporate governance

Professional behavior

Questions # 183:

Which of the following is NOT an advantage of establishing a company by purchasing “off the shelf”?

(i) The company is already registered so that in general business may be commenced more quickly.

(ii) The purchase off the shelf company can be cheaper than registration of a new company.

(iii) The articles of association are tailor-made to the requirements of the purchaser.

Options:

(i) only

(i) and (ii) only

(ii) and (iii) only

(iii) only

Questions # 184:

Which of the following identifies criminal as opposed to civil proceedings?

Options:

The case was heard by the Supreme Court.

The case was proved beyond reasonable doubt.

The case was brought by a claimant.

The case resulted in an award of damages.

Questions # 185:

Which of the following will NOT as a general rule amount to consideration?

Options:

A promise to carry out an existing contract.

A promise to pay the amount due at an early date.

A promise to do more than was originally agreed.

A promise to do an act in return for payment.

Questions # 186:

Which of the following is incorrect?

Options:

Subject to the company's Articles of Association, shareholder approval is not required to enable the company to borrow money.

Subject to the company's Articles of Association, shareholder approval is not required to authorise the issue of shares direct to one person for a non-cash consideration.

A company's Articles cannot provide that the Articles are unalterable.

The Articles of Association may be altered by special resolution.

Questions # 187:

Which of the following is correct in relation to the UK Corporate Governance Code?

(i) The Code gives rise to a disclosure requirement

(ii) Breach of the Code gives rise to criminal penalties

(iii) Breach of the Code gives rise to civil liability

Options:

(i) only

(i) and (ii) only

(ii) and (iii) only

(iii) only

Questions # 188:

Which of the following statements describes an example of a value for money audit?

Options:

Identifying and appraising weaknesses in the organisation's management team

Analysing the reported financial performance of one of the organisation's branches

Assessing the organisation's conformance with employment laws and regulations

Appraising the efficiency of one of the organisation's manufacturing processes

Questions # 189:

S is assistant management accountant for a large telecommunications company. S has become aware that the company is offering different levels of discount to different corporate customers. 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 S's concern, and said that such a situation was 'perfectly normal'.

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

Options:

Nothing further

Request a further meeting with the Finance Director

Ask for confirmation in writing from the Director

Resign

Bring the matter to the attention of the Managing Director

Ask for advice from the company's external auditors

Questions # 190:

Which of the following is incorrect?

Options:

An Act of Parliament is a superior source of law to a decision of the Supreme Court.

A decision of the Supreme Court is a superior source of law to a decision of the High Court.

Where there is a conflict between equity and the common law, the common law prevails.

Where there is a conflict between English Law and European Law, European Law prevails.

Questions # 191:

X was employed by Bee Ltd as its senior design consultant. X contracted with Bee Ltd that, when his employment with the company ceased, he would not act in competition with it or solicit its customers. After X left Bee Ltd, he registered a company called Cee Ltd which immediately began working in competition with Bee Ltd and soliciting its customers. Bee Ltd complained to X about this conduct, but X stated that, as the work was being undertaken by Cee Ltd, a separate legal entity, X had not acted in breach of the agreement with Bee Ltd.

Which of the following statements is correct?

Options:

X is correct and cannot be said to be in breach of the agreement with Bee Ltd.

If the court finds that Cee Ltd was set up by X to avoid the agreement with Bee Ltd, it will "lift the corporate veil" and enforce X's contract with Bee Ltd against X and Cee Ltd.

Cee Ltd will be bound by the agreement because a company is always liable for the actions of its shareholders.

The agreement between Bee Ltd and X is of no legal effect, as it attempts to regulate X's activities after he has left Bee Ltd's employment.

Questions # 192:

X Ltd has entered into a number of contracts with Y Ltd. In which of the following situations could the directors be held personally liable for the debts contracted with Y Ltd?

(i) X Ltd has continued to trade at a time when insolvency appeared inevitable

(ii) X Ltd has become insolvent and is unable to pay its debts to Y Ltd

(iii) X Ltd has contracted for a purpose not specified in its articles of association

Options:

(i) only

(i) and (ii) only

(ii) only

(iii) only

Questions # 193:

Which of the following is presumed not to be intended to create legal relations?

Options:

A commercial transaction.

An agreement by Exe Ltd to make a gift to Wye Ltd.

A social arrangement.

A contract between father and son.

Questions # 194:

Which of the following is correct?

(i) A liquidated damages clause will be void if it amounts to a penalty clause.

(ii) A liquidated damages clause will apply where it is a genuine attempt to pre-estimate the loss caused by a breach of contract.

(iii) A liquidated damages clause is void if it is for an amount in excess of the actual loss caused by the breach of contract.

Options:

(i) and (ii) only

(ii) only

(i), (ii) and (iii)

(iii) only

Questions # 195:

Which of the following statements is correct in relation to a public company limited by shares?

(i) A public company cannot commence trading until it has received a certificate from the Registrar of Companies confirming that it has satisfied the minimum requirements as to authorized and issued share capital.

(ii) If a public company commences trading without a trading certificate, and fails to meet its obligations, the directors may be held jointly and severally liable for those obligations.

(iii) A public company must have a minimum of one shareholder.