Deck 6: Inchoate Offences

Question 1

Which of the following is not a common form of company financing?

A) equity financing
B) debt financing
C) bank borrowing
D) donations

Answer 1

D

Question 2

A debenture is

A) a type of company
B) a document that acknowledges a debt
C) a document that cancels a debt
D) an official company document

Answer 2

B

Question 3

A fixed charge is a

A) a charge over land
B) proprietary interest over all company assets
C) a charge over a particular company asset
D) a charge over chattels

Answer 3

C

Question 4

A floating charge is a

A) proprietary interest over all company assets
B) a charge over a ship
C) a charge over aircraft
D) a charge over a particular company asset

Question 5

A company is insolvent when

A) it is unable to pay its debts
B) it has no assets
C) it lacks a viable business plan
D) it is unwilling to pay a creditor

Question 6

Which of the following is not a method of obtaining security for a loan?

A) registering a floating charge over the company's assets
B) registering a fixed charge over the company's assets
C) including a Retention of Title clause in sales of goods contracts with the company
D) refusing to hand over goods till paid

Question 7

Company A borrows money from Bank B. This makes B

A) a creditor of A
B) a debtor of A
C) a part-owner of the company
D) obligated to contribute to the company's success

Question 8

Company A borrows money from Bank B. This makes A

A) a creditor of B
B) a debtor of B
C) morally obligated to repay
D) a subsidiary of B

Question 9

What is lease financing?

A) another term for equity financing
B) another term for debt financing
C) a lease of equipment, instead of a money raising exercise
D) an illegal form of lending

Question 10

How many classes of shares can a company have?

A) unlimited classes
B) voting and non-voting shares
C) no less than two classes
D) no more than three classes