MCQ

Question 1

Which of these cannot be considered an internal control body:

Board of Directors
Security Exchange Committee
Audit committee
Compensation committee

Answer 1

Security Exchange Committee

Question 2

Which of the following bodies cannot be qualified as an internal control body?

Board of directors
Board of statutory auditors
Security Exchange Commission
Compensation committee

Answer 2

Security Exchange Commission

Question 3

Which element is not needed to claim damages?

Reasonable certainty
Try to settle amicably
Foreseeability
Mitigation

Answer 3

Try to settle amicably

Question 4

Which of the following elements is not necessary to prove a case of fraud:

Intent to defraud
A material misrepresentation
The misrepresentation is justifiably relied upon
Severe monetary loss to the other party

Answer 4

Severe monetary loss to the other party

Question 5

With reference to patent protection, one or more of the following statements is not correct:

Is granted to new inventions
Under normal circumstances, it is transferable
Is not subject to any expiration term
Is available for abstract ideas

Answer 5

Is not subject to any expiration term
Is available for abstract ideas

Question 6

With reference to bylaws, one or more of the following statements is not correct:

It governs the internal structure of the corporation
It cannot be amended or modified
Is not necessary upon incorporation

Answer 6

It cannot be amended or modified
Is not necessary upon incorporation

Question 7

Which one is not necessary for a contract to be valid:

Legality of the matters
Capacity of the parties
Written evidence
Meeting of mind

Answer 7

Written evidence

Question 8

What is the body indicated by the shareholders to manage the company:

Audit committees
Board of directors
Independent auditors
Don’t remember the last

Answer 8

Board of directors

Question 9

What are the exceptions for the privity (one or more options):

Guarantee
Third party beneficiaries
Assignees
Creditors

Answer 9

Third party beneficiaries
Assignees
Creditors

Question 10

Which of the following decisions is typically taken by the shareholders’ meeting in a corporation?

Drafting the merger plan
Approval of financial statements
Employment of key personnel
Appointment of the committees’ members

Answer 10

Appointment of the committees’ members

Question 11

In a limited partnership, the limited partner is granted with the benefit of limited liability but is prohibited from performing one of the following actions:

Participate at members’ meeting
Inspect the accounting books
Manage the enterprise
Share the profits with the general partners

Answer 11

Manage the enterprise

Question 12

Which of the following elements is not required to seek compensatory damages?

Reasonable certainty
Foreseeability
Attempt to settle
Mitigation

Answer 12

Attempt to settle

Question 13

Under contract law, what is the effect of an acceptance that differs from the terms of the offer?

a. It constitutes a counteroffer.
b. It renders the contract void.
c. It automatically terminates the offer.
d. It has no effect on the offer.

Answer 13

It constitutes a counteroffer.

Question 13

What’s the statute of limitations?

a. It is a law that restricts the sale of certain products.
b. It refers to the period within which a legal claim must be filed.
c. It is a term used in international trade agreements.
d. It determines the validity of a contract.

Answer 13

It refers to the period within which a legal claim must be filed.

Question 14

Explain what is a “third-party beneficiary” and which
general contractual principle is derogated by it.

a. A third-party beneficiary is someone who provides consideration in a contract.
b. A third-party beneficiary is an individual who can enforce rights under a contract, despite not being a party to the contract.
c. A third-party beneficiary is a person who is responsible for drafting a contract.
d. A third-party beneficiary is a contractual principle that allows parties to modify the terms of an agreement.

Answer 14

A third-party beneficiary is an individual who can enforce rights under a contract, despite not being a party to the contract.

Question 15

What are the cases of discharge by operation of law?

a. Novation, merger, and release.
b. Breach of contract, termination, and waiver.
c. Performance, agreement, and consideration.
d. impossibility, and bankruptcy, illegality, statute of limitations.

Answer 15

Impossibility, illegality, bankruptcy, statute of limitations.

Question 16

Explain the difference between ratification and express appointment.

a. Ratification refers to the appointment of an agent, while express appointment refers to the confirmation of a contract.
b. Ratification refers to the confirmation of a contract, while express appointment refers to the appointment of an agent.
c. Ratification and express appointment are interchangeable terms in contract law.
d. Ratification refers to the appointment of a principal, while express appointment refers to the confirmation of an offer.

Answer 16

b. Ratification refers to the confirmation of a contract, while express appointment refers to the appointment of an agent.

Question 16

In what sense is it incorrect to refer to a written document in a contract?

a. Written documents are always necessary for a valid contract.
b. Written documents have no legal significance in contract law.
c. Written documents are sufficient evidence to prove the existence of a contract.
d. Referring to a written document alone may not capture all the terms and conditions agreed upon by the parties.

Answer 16

d. Referring to a written document alone may not capture all the terms and conditions agreed upon by the parties.

Question 17

Briefly explain the concept of meeting of the minds under contract law.

a. It refers to the physical gathering of parties to a contract.
b. It is the point in time when an offer is made.
c. It signifies the mutual agreement and understanding of the parties regarding the terms of the contract.
d. It is the moment when a contract becomes legally enforceable.

Answer 17

c. It signifies the mutual agreement and understanding of the parties regarding the terms of the contract.

Question 17

Under contract law, what are the requirements to have a valid offer?

a. Communication, intention to create legal relations, and certainty of terms.
b. Acceptance, consideration, and capacity to contract.
c. Offeror’s subjective intent, formality, and performance.
d. Counteroffer, consideration, and privity of contract.

Answer 17

a. Communication, intention to create legal relations, and certainty of terms.

Question 18

Which of the following decisions is typically taken by the shareholders’ meeting in a corporation?

a. Drafting the merger plan.
b. Approval of financial statements
c. Employment of key personnelz
d. Appointment of the committees’ members

Answer 18

Approval of financial statements
Appointment of the committees’ members

Question 18

Which one is not necessary to a contract be valid:

a. Legality of the matters
b. Capacity of the parties
c. Written evidence
d. Meeting of minds

Answer 18

c. Written evidence

Question 19

Briefly explain what duress is under contract law and how it influences the meeting of the minds.

a. Duress refers to the breach of contract by one party, leading to the termination of the agreement.
b. Duress is the act of threatening or coercing a party to enter into a contract against their will, rendering the contract voidable.
c. Duress is the requirement of fair and reasonable terms in a contract.
d. Duress has no influence on the meeting of the minds in contract law.

Answer 19

b. Duress is the act of threatening or coercing a party to enter into a contract against their will, rendering the contract voidable.

Question 20

One of the following matters is a decision not typically taken by the shareholders’ meeting of a corporation.

Approval of financial statements
By laws amendments
Transfer of the shares to majority stakeholder
Appointment of the external auditors

Answer 20

Transfer of the shares to majority stakeholder

Question 20

In a limited partnership, the limited partner is granted with the benefit of limited liability but is prohibited from performing one of the following actions:

a. Participate in members’ meetings.
b. Inspect the accounting books.
c. Manage the enterprise.
d. Share the profits with the general partners.

Answer 20

c. Manage the enterprise.

Question 20

With reference to the bylaws, one or more of the following statements is not correct (is false):

a. it governs the internal structure of the corporation.
b. it cannot be amended or modified.
c. Is not necessary upon incorporation.
d. It generally includes the powers granted to the shareholders’ meeting.

Answer 20

b. it cannot be amended or modified.
c. Is not necessary upon incorporation.

Question 21

What is the distinction feature of convertible bonds?

The bonds grant an option of conversion into shares in favor of their holders.
The issuing company has the unilateral right to convert their terms upon occurrences of certain events.
The bonds grant an option of conversion into cash in favor of their holders.
The bonds are mandatorily converted into preferred shares upon election of the company.

Answer 21

The bonds grant an option of conversion into shares in favor of their holders.

Förklaring: Convertible bonds grant the bondholders the option to convert their bonds into shares of the issuing company’s stock, typically at a predetermined conversion price and ratio.

Question 22

One of the following elements is not required to prove a case of fraud.

Intent to defraud.
Written evidence of the factual circumstance of the fraud
The fact that misrepresentation is justifiably relied upon.
A misrepresentation of a material fact

Answer 22

Written evidence of the factual circumstance of the fraud

Question 22

With reference to the by-laws of a corporation, one of the following is false.

It governs the internal structure of the corporation.
It can be drafted after incorporation.
It can be amended or modified by a resolution taken by the extraordinary shareholders meeting.

Answer 22

It can be amended or modified by a resolution taken by the extraordinary shareholders meeting (EGM).

Why: Only possible during AGM = Annual general meeting

Dock skriver svenska killen i sina anteckningar att dem bara kan ändras under EGMs, så jag tror rätt svar är “It can be drafted after incorporation.” dvs att det är falskt

Question 23

In a limited partnership, limited partners are prohibited from performing one of the following.

Inspect the accounting books.
Vote at the members meetings on authorizations requested by managers.
Participate in members meetings.
Obtain the reimbursement of their contributions at will.

Answer 23

Obtain the reimbursement of their contributions at will.

This statement means that limited partners cannot withdraw the money or assets they have invested in the partnership whenever they want.

Question 23

With reference to trademarks, one of the following is false:

They exist only if they are registered.
They do not necessarily include words.
They are renewable.
They can identify products and services.

Answer 23

They exist only if they are registered.

Question 24

One of the following regarding patents is false.

Patents are not available for the discovery of laws of nature or physical phenomena.
Once granted, patents are not transferable to third parties.
Patens are granted if the invention satisfies, among others, the novelty requirement.
Patents have an expiration date.

Answer 24

Once granted, patents are not transferable to third parties.

Question 25

Which of the following is not a class of shares?

Unsubscribed shares
Preference shares
Saving shares
Redeemable shares

Answer 25

Unsubscribed shares

Question 26

In an agency created by ratification:

The principal might not have had the legal capacity to enter into the contract when it was made.
An undisclosed principal can ratify the contract.
The principal must accept all terms of the ratified contract and is not entitled to “pick and choose” part of the agreement.
The agent has, since its beginning, the assurance that his/her action will be validated by the principal.

Answer 26

The principal must accept all terms of the ratified contract and is not entitled to “pick and choose” part of the agreement.

Question 27

With respect to the transfer of shares one of the following is false:

Donation of shares never triggers a right of first refusal under bylaws.
Shares are freely transferable in the absence of special restrictions.
Shareholders of listed companies can agree on temporary limitations on the transferability of their stakes through shareholders.
The bylaws of private companies can provide for temporary lock-up periods.

Answer 27

Donation of shares never triggers a right of first refusal under bylaws.

Question 28

In the concept of ownership and control, the parties exercising control over the company are the members of the board.

True
False

Answer 28

True

Enligt chatgpt: False
“While the board of directors plays a crucial role in governance and decision-making, they do not represent the sole entity exercising control over the company. Control is distributed among shareholders through their voting rights, the board of directors who oversee management, and the executive management team who execute operational decisions.”

Question 29

Breach of contractual obligations is a form of discharge of the contract.

True
False

Answer 29

True

Question 29

One of the following statements does not apply to partnerships.

Members of a partnership are subject to a duty not to compete even if the other members grant them.
Partnership does not enjoy the status of legal person.
Directorship of partnerships must necessarily be partners.
Unanimity is the default rule applicable to changes to the partners agreement.

Answer 29

Jag tror: Members of a partnership are subject to a duty not to compete even if the other members grant them.

Han hade svarat “Directorship of partnerships must necessarily be partners.” men vi har skrivit i våra anteckningar att external managerns can’t be appointed i partnerships, så jag tror han har fel

Question 30

One of the following applies to bonds.

Bondholders enjoy all rights granted to shareholders plus the guarantee of an interest over the investment.
No type of bond can be converted into shares.
Bonds are securities and, as such, can be listed on stock exchange even if the issuer share are private.
Investment by bondholders is accounted as equity in the issuer’s financial statements.

Answer 30

Bonds are securities and, as such, can be listed on stock exchange even if the issuer share are private.

Question 31

One of the following situations is not a full exception to the private doctrine.

Donee beneficiaries
Creditor beneficiaries
Assignees
Incidental beneficiaries

Answer 31

Incidental beneficiaries