364 Practice question bank
Question 26
Which of the following companies does not have share capital?
A A public company
B A company limited by guarantee
C An unlimited liability company (1 mark)Question 27
Which of the following is a company that has its shares traded on a public stock exchange?
A Unlimited company
B Listed company
C Public company
D Private company (2 marks)Question 28
Before it can trade, which of the following criteria must a public company meet?
A Its shares must be listed on a stock exchange
B It must have appointed an auditor
C It must obtain a trading certificate from the Registrar of Companies (1 mark)Question 29
Which of the following statements concerning promoters is correct?
A A promoter may not make a profit as a result of their position
B An accountant who acts in a professional capacity in the formation of a company is a promoter
C A promoter may not own shares in the company that they are forming
D A promoter that acts as an agent for others must not put themselves into a position where their
own interests clash with that of the company they are forming (2 marks)Question 30
In regards to a company changing its articles of association, which of the following statements is correct?
A A company must send copies of the amended articles to the Registrar of Companies within 28 days
of the amendment taking place
B A company may only change its articles once in a financial year
C A company requires a special or written resolution with a 75% majority to change its articles
(1 mark)Question 31
Under the Companies Act 2006, which of the following parties is contractually bound by a company's
constitution?
A Members in a capacity other than as a member
B The company
C Third parties with a business relationship with the company
D Company directors (2 marks)