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1.Which of the following requires court approval before the appointment of an administrator?

A、 Creditors

B、 Holders of floating charges

C、 The directors of the company

D、 The company itself

2.Which of the following is an English court NORMALLY bound to follow?

A、 An obiter statement of a higher court

B、 A ratio of a lower court

C、 A ratio of a court at the same level

D、 An obiter statement of the Supreme Court

3.Which of the following courts hear appeals from the magistrates’ court?

(1) County court

(2) Crown Court

(3) High Court

A、 (1) ａｎｄ (2) only

B、(2) ａｎｄ (3) only

C、 (1) ａｎｄ (3) only

D、 (1), (2) ａｎｄ (3)

4. Which of the following is NOT an automatic consequence of a compulsory winding up ｏｒｃｅｒagainst a public limited company?

A、 Transfers of shareholdings are suspended

B、 Liquidation is deemed to start on the date of the issuing of the order

C、 Directors cease to exercise any management power

D、 Employees are immediately dismissed

5. Which TWO of the following apply to shares of companies whose names end in ‘Ltd’?

(1) They may not be issued to non-members

(2) They may not be offered to the public

(3) They may not be transferred

(4) They may not be traded on the stock exchange

A、 (1) ａｎｄ (2)

B、 (2) ａｎｄ (3)

C、 (1) ａｎｄ (4)

D、 (2) ａｎｄ (4)

6.Which of the following statements regarding the age limits fｏｒserving as a directｏｒin a public limited company is true?

A、 Minimum age 16 years ａｎｄ no maximum age

B、 Minimum age 21 years ａｎｄ no maximum age

C、 Minimum age 21 years ａｎｄ maximum age 75 years

D、 Minimum age 16 years ａｎｄ maximum age 75 years

7.Which TWO of the following are private law actions?

(1) Those between individuals

(2) Those between business organisations

(3) Those between individuals ａｎｄ the state

A、 (1) ａｎｄ (2)

B、 (1) ａｎｄ (3)

C、 (2) ａｎｄ (3)

8.In which procedure does a liquidation committee operate?

(1) Compulsory liquidation

(2) A members’ voluntary liquidation

(3) A creditors’ voluntary liquidation

(4) Administration

A、 (1) ａｎｄ (2)

B、 (2) ａｎｄ (4)

C、 (1) ａｎｄ (3)

D、 (3) ａｎｄ (4)

9.The category of treasury shares comes into existence under which of the following circumstances?

A、 They are issued as such by a private company

B、 They are issued as such by a public company

C、 They are purchased as such by the exchequer

D、 They are purchased as such by a private ｏｒpublic company

10.Which of the following is NOT a source of English law?

A、 Custom

B、 Equity

C、 Public law

11.Which of the following are owed a duty of care by auditors when preparing a company’s audit report?

A、 A potential investｏｒwith no current holding

B、 An existing shareholder looking to increase their holding

C、 A company looking to make a takeover bid fｏｒthe company

D、 The company ａｎｄ the existing shareholders in the company as a body

12.In a potential redundancy situation, an employee may lose the right to payment if they reject an offer of alternative employment within the business. Which of the following will allow the employee to reject the employment offered ａｎｄ claim redundancy?

A、 The alternative was suitable but the employee reasonably felt that it was not of the same status

B、 The alternative was suitable but the employee refused to consider it

C、 The alternative was suitable but the employee’s grounds fｏｒrefusing to accept it were unreasonable

13.Which TWO of the following are reasons fｏｒdismissal which must be justified as FAIR?

(1) Capability ｏｒqualifications of the employee

(2) Legal prohibitions relating to the employee

(3) Refusal of the employee to join a trade union

(4) Taking part in unofficial industrial action

A、 (1) ａｎｄ (2)

B、 (1) ａｎｄ (3)

C、 (2) ａｎｄ (3)

D、 (2) ａｎｄ (4)

14.What type of contract does an employee have?

A、 A contract fｏｒservice

B、 A contract of service

C、 A contract fｏｒservices

D A contract of services

15.Which of the following describes a pre-contractual statement which does NOT form a term of a contract but induces the contract?

A、 A condition

B、 A warranty

C、 A representation

D、 An innominate term

16.Which of the following exists as a separate legal entity from its members?

A、 An ordinary partnership

B、 A limited partnership

C、 A limited liability partnership

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