ACCA F4 - Corp and Business Law (ENG)

194 12: Corporations and legal personality  Part D The formation and constitution of business organisations

Answers to Quick Quiz

1 A and D are correct. A private company cannot sell its shares to the public on any stock market, so B is

incorrect. Directors need not have unlimited liability, so C is incorrect.

2 B Members only have a liability for any outstanding amounts of share capital partly paid for.

3 B £50,000 is the minimum.

4 B and D are correct. A public company has to be defined as such in its constitution so A is incorrect. No

directors need have unlimited liability, so C is incorrect.

5 False. Sole trader businesses are not legally distinct from their owners.

Now try the questions below from the Practice Question Bank

Number

26, 27