Business Law and Practice

Question 1

General Partners (2)

Answer 1

1. Manage Business
2. Unlimited Liability

Question 2

Limited Partners (2)

Answer 2

1. Invest Capital
2. Limited Liability

Question 3

Elements of Partnership (3)

Answer 3

1. Person
2. Carry on Business in Common
3. With a View to Profit

Question 4

Types of Authority (3)

Answer 4

1. Actual
2. Express
3. Implied

Question 5

Unanimous Vote Required When (4)

Answer 5

1. Admitting New Partner
2. Changing Nature of Business
3. Amending Partnership Agreement
4. Expulsion of Partner

Question 6

Correct Notice for Leaving Partnership (2)

Answer 6

1. Notice to Anyone who Dealt with Partnership
2. Notification through an Advertisement in the London Gazette

Question 7

Limited by Guarantee (3)

Answer 7

1. Pay Fixed Amount
2. Not Used as Trading Company
3. Small Companies or Charitable

Question 8

Shelf Company (3)

Answer 8

1. Pre-incorporated
2. Can be Purchased
3. Begin Business Immediately

Question 9

Altering Articles/Special Articles (2)

Answer 9

1. Special Articles must be Filed at Companies House
2. Special Resolution, Requires Approval of 75% of Members

Question 10

De Jure Directors

Answer 10

Formally Appointed

Question 11

De Facto Directors

Answer 11

Not Appointed by Carries Out Duties

Question 12

Shadow Directors

Answer 12

Influences and Controls Directors

Question 13

Directors’ Duties (7)

Answer 13

1. Act within Powers
2. Promote Success of Company
3. Exercise Independent Judgement
4. Exercise Reasonable Care, Skill and Diligence
5. Avoid Conflicts of Interest
6. Not Accept Benefit from Third Parties
7. Declare Interest in Proposed or Existing Transaction with Company

Question 14

Types of Shares (2)

Answer 14

1. Ordinary
2. Preferred

Question 15

Members’ Rights

Answer 15

1. Dividends
2. Vote
3. Bring a Derivative Action
4. Unfairly Prejudiced
5. Inspect Documents

Question 16

Notice to All for Members Meetings (4)

Answer 16

1. Personal Representative If Deceased
2. Trustee in Bankruptcy if Solvent
3. Directors
4. Company’s Auditors

Question 17

Notice for Meetings Key Features (2)

Answer 17

1. In Writing
2. Called 14 Clear Days (Including Weekends and Public Holidays)

Question 18

Written Resolution Requirements (4)

Answer 18

1. Instructions
2. 28 Day Time Limit for Return
3. Documents Circulated
4. Directors Cannot be Dismissed

Question 19

Preemption Right (2)

Answer 19

1. Shares for Cash Should Be Offered to Members First Before External
2. 14 Days to Decide

Question 20

Requirement for Charge

Answer 20

Registered at Companies House within 21 Days

Question 21

Fixed Charge

Answer 21

Assets that have a long lifetime in company

Question 22

Floating Charge

Answer 22

Assets that Regularly Change

Question 23

Accounts must be fined annually (2)

Answer 23

1. 9 months for private companies
2. 6 months for public companies

Question 24

Records must be kept and made available (5)

Answer 24

1. Directors
2. Members
3. Secretaries
4. People with Significant Control
5. Charges

Question 25

Individual Voluntary Arrangement (3)

Answer 25

1. Debtor Nominee
2. Interim Order
3. 75% of Unsecured Value of Creditors Must Agree to Order

Question 26

Initiating Bankruptcy Proceedings (3)

Answer 26

1. By Debtor
2. Unsecured Creditors Owed Atleast 5k
3. By Supervisor of an IVA