Deck 2: Actus Reus

Question 1

Who is considered to be a sole trader?

A) any individual in business on their own account
B) the sole shareholder in a company
C) the person tasked with managing the company
D) anyone outside a partnership

Answer 1

A

Question 2

Which of the following is not a type of European business organisation?

A) European Private Limited Liability Company (SPE)
B) European Public Limited Liability Company (SE)
C) European Economic Interest Group (EEIG)
D) European Limited Partnership (ELP)

Answer 2

D

Question 3

Community interest companies are subject to

A) a community interest test
B) an affordability test
C) an environmental sustainability test
D) an incorporation test

Answer 3

A

Question 4

Which of the following is not a characteristic of an unincorporated association?

A) it is a legal entity
B) it has identifiable membership
C) it has a constitution
D) it has an existence distinct from it members

Question 5

Which of the following is not a characteristic of registered companies?

A) separate legal personality
B) limited liability
C) transferable shares
D) recourse to shareholder assets on winding up

Question 6

Which of the following types of business can be listed on the stock market?

A) community interest company
B) public limited company
C) private company limited by shares
D) limited partnership

Question 7

A company whose members undertake to contribute a specified amount on a winding up is a

A) company limited by shares
B) company limited by guarantee
C) unincorporated company
D) public limited company

Question 8

George and John run a shop together. The do not wish a formal separation between their private and business interests. The most suitable legal vehicle for them would be

A) a private limited company
B) a public limited company
C) a limited partnership
D) a partnership

Question 9

The effect of a partnership is that

A) all partners share in profits, but not debts
B) profits and debts are borne by the partnership, not individuals
C) all partners are equally liable for the debts of the business
D) all liabilities are considered the same as those of a company

Question 10

What is the proposal for a European Foundation (FE) about?

A) It is to be an organisation focused on promoting the public benefit
B) it is to be an umbrella organisation for charities
C) it is a European charity
D) it is a pro-European think-tank