Part D The formation and constitution of business organisations 12: Corporations and legal personality 193Quick Quiz
1 Which two of the following statements is true? A private company
A Is defined as any company that is not a public company
B Sells its shares on the junior stock market known as the Alternative Investment Market and on the
Stock Exchange
C Must have at least one director with unlimited liability
D Is a significant form of business organisation in areas of the economy that do not require large
amounts of capital2 Under which circumstance would a member of a limited company have to contribute funds on winding
up?
A Where there is not enough cash to pay the creditors
B Where they have an outstanding amount from when they originally purchased their shares
C To allow the company to repurchase debentures it issued
D Where the company is a community interest company and the funds are required to complete a
community project
3 The minimum share capital of a public limited company is
A £12,500
B £50,000
C £100,000
D £500,0004 Which two of the following are correct? A public company or plc
A Is defined as any company which is not a private company
B Has a legal personality that is separate from its members or owners
C Must have at least one director with unlimited liability
D Can own property and make contracts in its own name5 Businesses in the form of sole traders are legally distinct from their owners.
TrueFalse^