Business Law

Question 1

General Partnership (3)

Answer 1

1. Governed by Partnership Act 1890
2. Each partner has unlimited liability
3. Cannot vary partnership or relationship between partnerships and third parties

Question 2

Limited Partnerships (3)

Answer 2

1. General partners manage business and unlimited liability
2. Limited partner invests capital and limited liability
3. Governed by Limited Partnerships Act 1907

Question 3

General Partnerships Presumption

Answer 3

Agreeing to share profits is prima facie a partnership

Question 4

Objective Test for Apparent Authority

Answer 4

1. Partner’s Acts related to the Firm
2. Is Transaction one a partner in this type of firm would have authority

Question 5

Liability when partner lacked actual or apparent authority

Answer 5

Partner who contracted is liable

Question 6

Liability when partner had apparent authority

Answer 6

1. Partnership is bound
2. Pursue partner for contractual remedies

Question 7

Tort Liability in General Partnerships

Answer 7

Firm liable

Question 8

Designated Members

Answer 8

More than 25% assets or voting rights, or other right to control

Question 9

Rights of Members in LLP

Answer 9

1. Share of Profits
2. Indemnification
3. Inspect Books and Records
4. Right to Manage LLP

Question 10

Liability of Members in LLP

Answer 10

Only liable for amount of capital contribution

Question 11

Death of Member in LLP

Answer 11

LLP Continues

Question 12

Death of Member in General Partnership

Answer 12

Dissolved

Question 13

Number of Directors in First Registration

Answer 13

1. Atleast two directors for public company
2. Only one for private company

Question 14

Remedies for Breach of Director’s Duties

Answer 14

1. Account for Profits
2. Return of Company Property
3. Payment of Equitable Compensation
4. Recission of a Contract
5. Injunctions
6. Common Law Damages
7. Removal of Director Through Majority Vote
8. Disqualification of Director

Question 15

Person with significant control

Answer 15

Holds more than 25%

Question 16

Notice to Sack Director

Answer 16

28 clear days

Question 17

Hand-Delivered Notice

Answer 17

14 Clear Days

Question 18

Filing Special Resolution at Companies House

Answer 18

Within 15 days

Question 19

Effect of Incorporation after 1st October 2009

Answer 19

Can allot additional shares without resolution

Question 20

Transaction Clawback Timelimits

Answer 20

1. Voidable if taken place in the last 6 months
2. Period extends to 2 years if connected to the person

Question 21

Transaction Under Value

Answer 21

1. Voidable in the 2 years prior
2. Time period is 5 years if become insolvent because of transaction

Question 22

Floating Charge Void if

Answer 22

Created within 12 months for no fresh consideration
Time period extends to 2 years if to connected person

Question 23

Company deemed unable to pay debts (4)

Answer 23

1. Owed 750 quid and not paid within 21 days
2. Obtained judgement and not fully satisfied
3. Unable to pay debts as they fall due
4. Value of assets are less than liabilities

Question 24

Installments for Tax Returns (3)

Answer 24

1. First: 31st January following end of tax year
2. Second: 31st July
3. Balancing: The following 31st January

Question 25

Trading Profit

Answer 25

Gross Revenue - (Revenue Expense + Annual Investment Allowance + Writing Down Allowance)

Question 26

Capital Assets

Answer 26

100% Deductible from AIA

Question 27

Pools for Writing Down Allowance (3)

Answer 27

1. Main Pool - 18% per annum (carry over for year 2) 2. Special Pool - 6% per annum 3. Single Item Pool

Question 28

Personal Savings Allowance (3)

Answer 28

1. Basic Rate: 1000 2. HR: 500 3. Additional: No PSA

Question 29

Dividend Allowance and Tax Rates (4)

Answer 29

1. 2000 2. Basic Rate: 7.5% 3. Higher Rate: 32.5% 4. Additional Rate: 38.1%

Question 30

CGT Exempted Assets (3)

Answer 30

1. Cash, ISA, Guilts 2. Wasting Chattels 3. Non-wasting Chattels less than 6K

Question 31

Periods of absence deemed as occupation (4)

Answer 31

1. Last 9 months of ownership 2. Absence for any reason (up to 3 years) 3. Any amount of time working overseas 4. Time to work elsewhere in the UK (4 years)

Question 32

CGT Annual Exempt Amount

Answer 32

12,300

Question 33

CGT Individual Tax Rates

Answer 33

1. BR: 10% (18% for property) 2. Otherwise - 20% (28% for property)