MCQ Flashcards

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1
Q

Which of these cannot be considered an internal control body:

Board of Directors
Security Exchange Committee
Audit committee
Compensation committee

A

Security Exchange Committee

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2
Q

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

A

Security Exchange Commission

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3
Q

Which element is not needed to claim damages?

Reasonable certainty
Try to settle amicably
Foreseeability
Mitigation

A

Try to settle amicably

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4
Q

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

A

Severe monetary loss to the other party

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5
Q

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

A

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

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6
Q

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

A

It cannot be amended or modified
Is not necessary upon incorporation

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7
Q

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

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

A

Written evidence

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8
Q

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

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

A

Board of directors

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9
Q

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

Guarantee
Third party beneficiaries
Assignees
Creditors

A

Third party beneficiaries
Assignees
Creditors

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10
Q

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

A

Appointment of the committees’ members

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11
Q

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

A

Manage the enterprise

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12
Q

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

Reasonable certainty
Foreseeability
Attempt to settle
Mitigation

A

Attempt to settle

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13
Q

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.

A

It constitutes a counteroffer.

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13
Q

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.

A

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

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14
Q

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.

A

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

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15
Q

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.

A

Impossibility, illegality, bankruptcy, statute of limitations.

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16
Q

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.

A

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

16
Q

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.

A

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

17
Q

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.

A

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

17
Q

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.

A

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

18
Q

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

A

Approval of financial statements
Appointment of the committees’ members

18
Q

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

A

c. Written evidence

19
Q

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.

A

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

20
Q

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

A

Transfer of the shares to majority stakeholder

20
Q

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.

A

c. Manage the enterprise.

20
Q

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.

A

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

21
Q

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.

A

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.

22
Q

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

A

Written evidence of the factual circumstance of the fraud

22
Q

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.

A

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

23
Q

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.

A

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.

23
Q

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.

A

They exist only if they are registered.

24
Q

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.

A

Once granted, patents are not transferable to third parties.

25
Q

Which of the following is not a class of shares?

Unsubscribed shares
Preference shares
Saving shares
Redeemable shares

A

Unsubscribed shares

26
Q

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.

A

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

27
Q

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.

A

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

28
Q

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

True
False

A

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.”

29
Q

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

True
False

A

True

29
Q

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.

A

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

30
Q

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.

A

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

31
Q

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

Donee beneficiaries
Creditor beneficiaries
Assignees
Incidental beneficiaries

A

Incidental beneficiaries