1,2 & 3

Question 1

What is the legal definition of a bank?

Answer 1

There isnt one

Question 2

If a banker discloses details of a customers account to another customer what have they done?

Answer 2

Breached their basic duties

Question 3

Banks are authorised and regulated by which organisation?

Answer 3

FCA - Financial conduct authority

Question 4

A partnership is defined as?

Answer 4

Two or more people conductiong business together with a view of profit

Question 5

What constitues to good customer relations?

Answer 5

Trust, confidence and integrity

Question 6

What are current account used for?

Answer 6

Accounts throguh which sales income is lodged and from which bills are paid

Question 7

What is an advantage of a term loan?

Answer 7

Spreads the cost other the asset over its expected life.

Question 8

How can currency exposure be reduced?

Answer 8

Arrange a forward contract to sell currency it is due to receive.

Question 9

What is BACS?

Answer 9

Bankers automated clearing services

Question 10

What best describes an overdraft?

Answer 10

A type of pending to cover the day to day flyctuating needs of a business

Question 11

What is a feature of a PLC?

Answer 11

It must have at least 2 directors

Question 12

What is the key component of your lending decision?

Answer 12

The character and ability of the borrower

Question 13

On the death of a parter what action should be taken?

Answer 13

Stop operations on the account and intimate a claim on the estate of the deceased

Question 14

What are the characteristics of a private limited company?

Answer 14

It restricts the rights of shareholders to transfer their shares

Question 15

What is the liability of a partner for the firms debt?

Answer 15

Joint and severally with other partners

Question 16

What is joint and several liability?

Answer 16

Any partner has unlimited liability for the debts of the partnership

Question 17

Mock

Who has responsibility for the Financial Services Compensation Scheme?

Answer 17

The Prudential Regulatory Authority and the Financial Conduct Authority

Question 18

Mock

Who would not be considered to be one of the foundation stones of banking?

a) Trust
b) Confidence
c) Integrity of dealing
d) Creditworthiness

Answer 18

d) Creditworthiness

Question 19

A partnership is which of the following?

a) Two or more people conducting business together with a view to profit
b) An individual carrying on business using a name other than his own
c) Two or more people who get together to form a private limited company
d) Two or more people who get together to share a common interest

Answer 19

a) Two or more people conducting business together with a view to profit

Question 20

Mock

How can a borrowing company protect itself against rising interest rates?

Answer 20

By arranging a fixed rate loan

Question 21

Mock

For what purpose do banks commonly use their customers’ deposits?

Answer 21

To lend to other customers

Question 22

Mock

On a business account with an overdraft facility how does the bank calculate interest?

Answer 22

On the day-to-day balance of borrowing outstanding on the account

Question 23

Mock

On a business account with an overdraft facility how does the bank calculate interest?

Answer 23

On the day-to-day balance of borrowing outstanding on the account

Question 24

Mock

The Articles of Association are essentially….

Answer 24

the contract between the shareholders and the company.

Question 25

Mock

The Articles of Association are essentially….

Answer 25

the contract between the shareholders and the company.

Question 26

Mock

In respect of partners drawing up a partnership agreement, which of the following is true?

Answer 26

It is not necessary, though desirable

Question 27

What is money transmission?

Answer 27

Transfer of money from the buyer of goods or services to the supplier.

Question 28

What is limited liability?

Answer 28

Shareholder is only personally liable for the debts that they hold shares in.

Question 29

What is a shareholders liability limited to?

Answer 29

Any amount which remains unpaid on their shares.

Question 30

What is BCOBS?

Answer 30

Banking code of conduct sourcebook - Tells banks what level of service they should be providing.

Question 31

What is an LLP

Answer 31

Legal entity which is separate from its members in that each member of the partnership acts as an agent of the partnership.

Question 32

What is the amount of authorised share capital a PLC must have?

Answer 32

At least £50k

Question 33

A limited company is limited to how many members or shareholders?

Answer 33

50

Question 34

Memorandum, of Association - what 2 clauses must it include?

Answer 34

1 - stating the company has been formed

2- that new subscribers have taken at least 1 share.