Miscellaneous 2

Question 1

In tax matters, how is delegated legislation made?

Answer 1

Statutory instrument

Question 2

True or false, the rules of common law and equity are separate?

Answer 2

True

Question 3

True or false, it is not possible to bring an action and seek remedies at common law and equity at the same time?

Answer 3

False

Question 4

Simon, a tax advisor recommends a tax avoidance scheme designed by his firm to a client. True or false, Simon could be guilty of negligence if he fails to point out the possible tax advantages of carrying out a transaction in one way or another?

Answer 4

True

Question 5

Which act is false representation an offence under?

Answer 5

The Fraud Act 2006

Question 6

True or false, cheating the public revenue is an offence under the Fraud Act 2006?

Answer 6

False

Question 7

True or false, it is an implied term in contracts between businesses by the Supply of Goods and Services Act 1992 for the client to be entitled to a reasonable about of damages for a breach of contract where the price charged is not stipulated in the contract?

Answer 7

False, but the client must pay a reasonable charge to the tax practitioner, the tax practitioner must perform the contract in a reasonable time period and perform their work with reasonable care and skill to a proper standard of workmanship

Question 8

True or false, trademarks can only be registered in respect of particular goods or services, or classes of goods or services?

Answer 8

True

Question 9

True or false, trademarks can only be protected by registering them under the Trade Marks Act 1994?

Answer 9

False

Question 10

True or false, a franchise is a type of license?

Answer 10

True

Question 11

What is the definition of a premium payable under a lease?

Answer 11

A one off capital sum paid by the tenant to the landlord

Question 12

What is a license?

Answer 12

Where a person has ben given permission by the occupier of land to do something which would otherwise be unlawful in respect of the land by another person

Question 13

If you buy a car, lend it to your brother, and your brother’s wife uses it, who owns and possesses the car?

Answer 13

You own the car and the brother’s wife possesses it

Question 14

What are goods defined as?

Answer 14

Tangible moveable property

Question 15

True or false, a payment in respect of a restraint of trade clause in an employment contract is always subject to income tax?

Answer 15

True

Question 16

True or false, it does not matter if a restraint of trade clause is reasonable in the interest of the public?

Answer 16

False

Question 17

True or false, offering an alternative price constitutes making an offer?

Answer 17

True

Question 18

Rajit tells Nick that Simon is acting on his behalf in respect of the sale of Rajit’s house.

As a result, Nick enters into a contract with Simon to purchase Rajit’s house.

Based on this information, what is the name of the authority with which Simon is acting?

Answer 18

Apparent authority

Question 19

True or false, a guarantor may incur a loss for capital gains tax purposes?

Answer 19

True

Question 20

True or false, the right to decide the length of time to take to complete a job is not a factor used to test the degree of control over an individual’s activities?

Answer 20

True

Question 21

True or false, unfair dismissal can occur when the reason for the dismissal is fair, but reasonable procedures were not followed?

Answer 21

True

Question 22

What would you expect to see in a written partnership agreement?

Answer 22

The date on which the partnership is to commence and its duration
The keeping of books and accounts
Restrictions on the activities of partners, for example other occupations and businesses in which the partners may not engage

Question 23

True or false, tax legislation can treat a sole trader as being separate from their business?

Answer 23

True

Question 24

True or false, a sole trader cannot pay voluntary class 3 NIC?

Answer 24

False

Question 25

What is always a legal requirement for running a business?

Answer 25

Keeping records

Question 26

What debts are new partners liable for?

Answer 26

Only debts of the partnership incurred after they became partners

Question 27

What 3 terms are implied into the partnership agreement according to the Partnership Act 1890?

Answer 27

No interest is paid on capital Partners are entitled to a 5% interest on loans to the partnership above their original capital All partners are entitled to access the partnership books

Question 28

Someone dies leaving a valid will. There are no executors able to act. You agree to be a personal representative. What grant of representation is issued to you?

Answer 28

Grant of letters of administration with will annexed

Question 29

If an individual dies in England without a valid Will, leaving behind a spouse and child, what will the spouse receive?

Answer 29

the personal chattels, a statutory legacy of £270,000 and a absolute interest in half of the residue only

Question 30

What is the name of the order issued when a couple divorces, and the minor children are allowed to remain the family home?

Answer 30

A mersher order

Question 31

True or false, a residual legacy will fail if it has been disclaimed by the named beneficiary?

Answer 31

True

Question 32

True or false, a residual legacy will fail if the legatee dies before the testator?

Answer 32

True

Question 33

What is a protective trust?

Answer 33

A trust that automatically ends if a beneficiary becomes bankrupt or tries to sell their interest

Question 34

True or false, trustees can appoint a new trustee when an existing trustee leaves the country for more than 6 months?

Answer 34

False

Question 35

True or false, trustees can appoint a new trustee when an existing trustee becomes bankrupt?

Answer 35

True

Question 36

Sijo holds 250 shares in a company on trust for Tim. Tim is absolutely entitled to the property and, if Tim wishes, Sijo must hand over the legal title. True or false, Sijo is Tim's nominee and Sijo is entitled to dividends?

Answer 36

False, Sijo is Tim's nominee but he is not entitled to dividends

Question 37

What rights does a participating preference shareholder have?

Answer 37

A right to a fixed rate dividend A right to dividends in proportion to those paid to other classes of shareholder

Question 38

When does a company need bespoke articles?

Answer 38

When it is limited by guarantee

Question 39

Do bespoke articles need to be submitted to companies house?

Answer 39

Yes

Question 40

Who can challenge voluntary arrangements?

Answer 40

Creditors and shareholders