Practice question bank 365
Question 32
National Hair Brushes plc was incorporated in June 20X6. The directors have received a letter from
another company, Lancashire Hair Brushes plc, stating that it was incorporated in 20X5, that its business
is being adversely affected by the use of the new company name and demanding that National Hair
Brushes plc changes the company name.
Required
(a) State the nature of a 'passing-off' action. (2 marks)
(b) State what Lancashire Hair Brushes would need to prove in order to establish that it is a victim of
'passing-off'. (2 marks)
(c) State an alternative course of action that Lancashire Hair Brushes could take to force National Hair
Brushes to change its name. (2 marks)
(Total = 6 marks)
Question 33
Which of the following statements correctly describes a rights issue?
A An offer to debenture holders to purchase shares in the company
B An offer to existing shareholders to purchase further shares in the company
C The allotment of additional shares to existing shareholders in proportion to their holdings
(1 mark)
Question 34
Which of the following statements correctly describes a company's called up share capital?
A The type, class, number and amount of shares issued and allotted to shareholders
B The maximum amount of share capital that a company can have in issue
C The amount the company has required shareholders to pay on existing shares
D The amount shareholders have paid on existing shares (2 marks)
Question 35
A floating charge will crystallise on the occurrence of which of the following events?
A Sale of the assets subject to the charge
B Resignation of the finance director
C The chargee appointing a receiver (1 mark)
Question 36
In the context of debentures, which of the following MUST be created using a debenture trust deed?
A Debenture stock
B A single debenture
C Register of debenture holders
D Series debentures (2 marks)
Question 37
Which type of dividend is paid by the issue of additional shares?
A Scrip dividends
B Equity dividends
C Capital dividends (1 mark)