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BA4 Exam Dumps : Fundamentals of Ethics, Corporate Governance and Business Law

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Fundamentals of Ethics, Corporate Governance and Business Law Questions and Answers

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Question 1

Which of the following is correctly stated to be an advantage of carrying on business via a company limited by shares? 

(i) The liability of the company is limited.

(ii) In general the directors are not liable for the debts of the company.

(iii) The liability of the shareholders is limited.  

Options:

A.

(i) only

B.

(i) and (ii) only

C.

(ii) and (iii) only

D.

(iii) only

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Question 2

Which of the following contracts might be specifically enforceable?

Options:

A.

A has contracted to sell his house to B but has changed his mind and no longer wishes to sell it.

B.

C has contracted to buy a new Ford motor car but the garage is now refusing to honor the contract.

C.

D has contracted to purchase a number of tins of fruit for her business but the seller has now stated that he no longer wishes to proceed with the contract.

D.

E has contracted to sing at a concert organized by F, but E has withdrawn as he has received a more lucrative offer from G.

Question 3

An external auditor has concluded that the financial statements of a company fairly reflect the financial position of a company. The report which the auditor issues will include which of the following?

1. Details of the company's directors

2. Details of managements' responsibilities.

3. Details of the company's performance.

Options:

A.

1 and 3 only

B.

1,2 and 3

C.

2 only

D.

1 and 2 only

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