Question 1

Which of the following is not considered a disguised distribution?

Accepted Answer

A)  a sale of company property to a member at an undervalue 
B)  corporate gifts to members 
C)  payment of excessive wages to employees who are also members 
D)  a payment made to members out of a company's distributable profits 
A)  a sale of company property to a member at an undervalue 
B)  corporate gifts to members 
C)  payment of excessive wages to employees who are also members 
D)  a payment made to members out of a company's distributable profits D

Question 2

On winding up, which of the following creditors ranks last?

Accepted Answer

A)  Revenue 
B)  shareholders 
C)  secured creditors 
D)  unsecured creditors 
A)  Revenue 
B)  shareholders 
C)  secured creditors 
D)  unsecured creditors B

Question 3

What is the Cakes and Ale Case Law about?

Accepted Answer

A)  no company can make truly gratuitous distributions of its assets 
B)  a company can make gratuitous distributions of its assets only regarding catering 
C)  a company can donate assets at will 
D)  directors can have free meals at company premises 
A)  no company can make truly gratuitous distributions of its assets 
B)  a company can make gratuitous distributions of its assets only regarding catering 
C)  a company can donate assets at will 
D)  directors can have free meals at company premises A

Question 4

What is the 'book value' of an asset?

Accepted Answer

A)  the same as the market value 
B)  anything that differs from the market value 
C)  the cost of purchase of an asset by the company 
D)  the value if expressed in an amount of books 
A)  the same as the market value 
B)  anything that differs from the market value 
C)  the cost of purchase of an asset by the company 
D)  the value if expressed in an amount of books

Question 5

The principle of capital maintenance can be identified with all but one of the following. Which one is unrelated?

Accepted Answer

A)  minimal share capital rules 
B)  prohibition on companies reducing their share capital 
C)  distributions to shareholders solely out of profits 
D)  director's duty to act in the interests of the company 
A)  minimal share capital rules 
B)  prohibition on companies reducing their share capital 
C)  distributions to shareholders solely out of profits 
D)  director's duty to act in the interests of the company

Question 6

Which of the following is considered a distribution under s.829 Companies Act 2006?

Accepted Answer

A)  every distribution of company assets to shareholders 
B)  a reduction of share capital 
C)  an acquisition of shares 
D)  the issue of bonus shares 
A)  every distribution of company assets to shareholders 
B)  a reduction of share capital 
C)  an acquisition of shares 
D)  the issue of bonus shares

Question 7

For the consequences of unlawful distributions the company can obtain remedies against

Accepted Answer

A)  shareholders 
B)  directors 
C)  both 
D)  no-one 
A)  shareholders 
B)  directors 
C)  both 
D)  no-one

Question 8

What is a dividend?

Accepted Answer

A)  a payment made to members out of a company's distributable profits 
B)  any transfer of money between shareholders 
C)  payments to directors 
D)  any purchase of shares 
A)  a payment made to members out of a company's distributable profits 
B)  any transfer of money between shareholders 
C)  payments to directors 
D)  any purchase of shares

Question 9

A creditor would prefer to trade with a company that has

Accepted Answer

A)  substantial share capital 
B)  minimal share capital 
C)  no share capital 
D)  any amount of share capital 
A)  substantial share capital 
B)  minimal share capital 
C)  no share capital 
D)  any amount of share capital

Question 10

A company may purchase its own shares

Accepted Answer

A)  never 
B)  always 
C)  by redeeming redeemable shares 
D)  by application to the Secretary of State 
A)  never 
B)  always 
C)  by redeeming redeemable shares 
D)  by application to the Secretary of State

Question 11

A company cannot offer financial assistance to purchase its own shares unless

Accepted Answer

A)  the purchased shares are used to repay a loan utilized to obtain the same shares 
B)  the company guarantees a loan obtained with the purpose of buying the company's own shares 
C)  the company lends the money to a third party in order for them to purchase the shares 
D)  the assistance is not given for the purchase of shares and is given in good faith in the interests of the company 
A)  the purchased shares are used to repay a loan utilized to obtain the same shares 
B)  the company guarantees a loan obtained with the purpose of buying the company's own shares 
C)  the company lends the money to a third party in order for them to purchase the shares 
D)  the assistance is not given for the purchase of shares and is given in good faith in the interests of the company

Question 12

Under s.641-644 Companies Act 2006, which of the following is not required for a reduction in the share capital of a private company?

Accepted Answer

A)  court confirmation 
B)  solvency statement 
C)  special resolution 
D)  statement of capital 
A)  court confirmation 
B)  solvency statement 
C)  special resolution 
D)  statement of capital

Which of the following is not considered a disguised distribution?

On winding up, which of the following creditors ranks last?

What is the Cakes and Ale Case Law about?

What is the 'book value' of an asset?

The principle of capital maintenance can be identified with all but one of the following. Which one is unrelated?

Which of the following is considered a distribution under s.829 Companies Act 2006?

For the consequences of unlawful distributions the company can obtain remedies against

What is a dividend?

A creditor would prefer to trade with a company that has

A company may purchase its own shares

A company cannot offer financial assistance to purchase its own shares unless

Under s.641-644 Companies Act 2006, which of the following is not required for a reduction in the share capital of a private company?

Introduction to Criminal Law

Actus Reus

Mens Rea

Strict Liability

Parties to a Crime

Inchoate Offences

Capacity

Mental Capacity Defences

Homicide

Non-Fatal Offences Against the Person

Sexual Offences

Theft

Robbery, Burglary and Other Offences in the Theft Acts

Fraud

Criminal Damage

Public Order Offences

Filters

Exam 8: General Defences

Which of the following is not considered a disguised distribution?

On winding up, which of the following creditors ranks last?

What is the Cakes and Ale Case Law about?

What is the 'book value' of an asset?

The principle of capital maintenance can be identified with all but one of the following. Which one is unrelated?

Which of the following is considered a distribution under s.829 Companies Act 2006?

For the consequences of unlawful distributions the company can obtain remedies against

What is a dividend?

A creditor would prefer to trade with a company that has

A company may purchase its own shares

A company cannot offer financial assistance to purchase its own shares unless

Under s.641-644 Companies Act 2006, which of the following is not required for a reduction in the share capital of a private company?

Introduction to Criminal Law

Actus Reus

Mens Rea

Strict Liability

Parties to a Crime

Inchoate Offences

Capacity

Mental Capacity Defences

Homicide

Non-Fatal Offences Against the Person

Sexual Offences

Theft

Robbery, Burglary and Other Offences in the Theft Acts

Fraud

Criminal Damage

Public Order Offences

Filters