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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 entitled to initiate court action on behalf of a company? 

(i) The board.

(ii) The majority shareholders.

(iii) All the shareholders.

Options:

A.

(i) only

B.

(i) or (ii) only

C.

(i) or (iii) only

D.

(i), (ii) or (iii)

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Question 2

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

Question 3

Which of the following is correct?

(i) The provisions of the Memorandum of Association do not form a contract between the members and the company.

(ii) The provisions of the Articles of Association form a contract between the members and the company.

(iii)      One member may sue another directly on the provisions in the Articles of Association which contain ordinary membership rights.

Options:

A.

(i) only

B.

(ii) only

C.

(i) and (ii) only

D.

(ii) and (iii) only

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