MCQs

Question 1

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 1

Security Exchange Commission

Question 2

Which element is not needed to claim damages?
* Reason certainty
* Try to settle amicably
* Foreseeability
* Mitigation

Answer 2

Try to settle amicably

Question 3

Which of the following element is not required to seek compensatory damages?
* Reasonable certainty
* Foreseeability
* Attempt to settle
* Mitigation

Answer 3

Attempt to settle

Question 4

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 4

Is not subject to any expiration term

Question 5

With reference to by-law 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
* It generally includes the powers granted to the shareholders’ meeting

Answer 5

• It cannot be amended or modified
• Is not necessary upon incorporation

Question 6

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’ meetings
* Inspect the accounting books
* Manage the enterprise
* Share the profits with the general partners

Answer 6

Manage the enterprise

Question 7

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 7

Appointment of the committees’ members

Question 8

What are the exceptions for the privity (one or more options):
* Guarantee
* Third party beneficiaries
* Assignees
* Creditors

Answer 8

• Third party beneficiaries
• Assignees
• Creditors

Question 9

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 9

Board of directors

Question 10

Which one is not necessary to a contract be valid:
* Legality of the matters
* Capacity of the parties
* Written evidence
* Meeting of minds

Answer 10

Written evidence

Question 11

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 11

Severe monetary loss to the other party