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whether the courts will lift the veil of incorporation to allow Doc to sue Fitt for breach of his?employment contract

Which two of the following statements are true? A private company…?

A

?Is defined as any company that is not a public company?

B

?Sells its shares on the junior stock market known as the Alternative Investment Market and on the?Stock Exchange?

C

Must have at least one director with unlimited liability?

D

?Is a significant form of business organisation in areas of the economy that do not require large?amounts of capital?

?Which two of the following are correct? A public company or plc …?

A

?Is defined as any company which is not a private company?

B

?Has a legal personality that is separate from its members or owners?

C

?Must have at least one director with unlimited liability?

D

?Can own property and make contracts in its own name?

Which of the following statements concerning promoters is correct?

A

A promoter may not make a profit as a result of their position

B

An accountant who acts in a professional capacity in the formation of a company is a promoter

C

A promoter may not own shares in the company that they are forming

D

A promoter that acts as an agent for others must not put themselves into a position where their?own interests clash with that of the company they are forming

?Which of the following describes the general duty of a promoter??

A

?Reasonable skill and care?

B

?Competence and accuracy?

C

?Due diligence?

?Which of the following statements concerning pre-incorporation contracts is correct??

A

?Pre-incorporation contracts must be ratified by the company?

B

?Pre-incorporation contracts cannot be ratified by the company?

C

?Pre-incorporation contracts can be ratified by the company if the third party agrees?

?Which of the following parties is NOT liable on a pre-incorporation contract??

A

?The company?

B

?The promoter?

C

?The third party?

?Which of the following criteria must a public company meet before it can trade??

A

?It must obtain a trading certificate from the Registrar of Companies?

B

?Its shares must be listed on a stock exchange?

C

?It must have appointed an auditor?

?Which of the following criteria must a private company meet before it can trade??

A

?It must have obtained a trading certificate from the Registrar of Companies?

B

?It must have obtained a certificate of incorporation from the Registrar of Companies?

C

?The members must have agreed to set up the company?

To wind up a Limited Liability Partnership (LLP), which of the following is required?

A

An order from the Registrar of Companies

B

It must be formally wound up

C

A deed signed by the partners

D

A court order