Questions I got wrong on past papers

Question 1

True or false:

Dividends must be paid on ordinary share capital every financial year.

Answer 1

False

Question 2

True or false:
On liquidation of the company, ordinary shares entitle the shareholder to have their capital repaid ahead of other creditors.

Answer 2

False

Question 3

True or false:

Ordinary shares may or may not have voting rights attached.

Answer 3

True

Question 4

True or false:

When a partner retires from a partnership, they must always be paid what they are owed in cash.

Answer 4

False, they can have a loan.

Question 5

True or false:

In a partnership, the partners are both the owners and the managers of the organisation.

Answer 5

True

Question 6

What is the gross sales margin percentage formula?

Answer 6

Gross profit/Selling price *100

Question 7

What is the gross sales markup percentage formula?

Answer 7

Gross profit/Cost price *100

Question 8

For which of the following reasons would a member of the public would most likely look at a business’ final accounts?
Assess the contribution of the business to the economy
or
Decision making relating to their personal investment in the business

Answer 8

Assess the contribution of the business to the economy