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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

E) B) and D)
F) A) and C)

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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

E) None of the above
F) A) and B)

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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

E) A) and B)
F) B) and D)

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B

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


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

E) None of the above
F) A) and D)

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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

E) A) and B)
F) None of the above

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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

E) A) and B)
F) None of the above

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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

E) None of the above
F) A) and B)

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C

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

E) None of the above
F) All of the above

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A

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

E) None of the above
F) B) and D)

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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

E) B) and D)
F) None of the above

Correct Answer

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