372 Practice answer bank
Answer 23
D Ostensible authority is wide ranging and includes whatever is usual in the circumstances plus
whatever the principal gives the agent either expressly or impliedly.
Syllabus area D1(c)Answer 24
A Partnership authority is based on agency law. Actual authority is determined by what the partners
agree.
Syllabus area D2(c)Answer 25
B To dissolve an LLP, it needs to be wound-up, in a similar way to a company.
Syllabus area D2(e)Answer 26
B Companies limited by guarantee do not have share capital.
Syllabus area D3(c)Answer 27
B A public company does not have to have its shares traded on a public stock exchange. If it does so,
then it becomes known as a listed (or quoted) company.
Syllabus area D3(c)Answer 28
C Before it can trade, a public company must be issued with a trading certificate from the Registrar of
Companies. None of the other options are criteria for obtaining a trading certificate.
Syllabus area D4(c)Answer 29
D Where a promoter acts as an agent for others, they must not put themselves into a position where
their own interests clash with those of the company. Accountants acting in a professional capacity
are not promoters. A promoter may make a legitimate profit as a result of their position. There is
nothing to stop a promoter from owning shares in the company that they form.
Syllabus area D4(a)Answer 30
C A special or written resolution with a 75% majority is sufficient to change a company's articles.
There is no restriction on the number of times a year the articles may be changed. Copies of the
amended articles must be submitted to the Registrar with 15 days of the amendment taking effect.
Syllabus area D4(g)