legl2002 multiple choice
The UNIVERSITY of NEWCASTLE
Faculty of Business & Law
LEGL2002 LAW OF BUSINESS ORGANISATIONS
Semester 1 2014
MCQ Revision Test
SAMPLE PAPER
Time Allowed – 50 minutes (including reading time)
Value – 10% of total mark.
Total Number of Questions – 20 questions
Closed book test – no phones, calculators or printed materials are allowed
Student ID – Please place your student ID card on your desk for checking during the test.
All questions are to be answered on the pink GPAS provided. Fill in your personal details including your student number and then answer the questions. Use a lead pencil only and fully erase any unwanted answers as the answer sheets are computer-marked
You must hand in this question paper and the answer sheet at the conclusion of the test.
QUESTION ONE
Which of the following statements about the directors of a company is true?
A. The employees of a company are subject to the control of each individual director.
B. Every decision by a company board is subject to the approval of the members.
C. Directors may delegate their management functions.
D. In all companies the members can remove a director from office by passing an ordinary resolution in a general meeting.
QUESTION TWO
Which of the following is the best description of the significance of the decision in Saloman v Saloman & Co Ltd [1897]?
a. The notion of limited liability should not apply to companies owned and operated by a single person
b. The concept of separate legal personality cannot be used by a sole trader to avoid liability to creditors
c. A shareholder who is also involved in the management of the company is not entitled to the benefit of limited liability
d. The benefits of incorporation extend to companies effectively under the control of a single person
QUESTION THREE
Members of a company may agree to adopt a constitution which includes restrictions on the company’s activities. Which of the following statements are true?
A. Those
Faculty of Business & Law
LEGL2002 LAW OF BUSINESS ORGANISATIONS
Semester 1 2014
MCQ Revision Test
SAMPLE PAPER
Time Allowed – 50 minutes (including reading time)
Value – 10% of total mark.
Total Number of Questions – 20 questions
Closed book test – no phones, calculators or printed materials are allowed
Student ID – Please place your student ID card on your desk for checking during the test.
All questions are to be answered on the pink GPAS provided. Fill in your personal details including your student number and then answer the questions. Use a lead pencil only and fully erase any unwanted answers as the answer sheets are computer-marked
You must hand in this question paper and the answer sheet at the conclusion of the test.
QUESTION ONE
Which of the following statements about the directors of a company is true?
A. The employees of a company are subject to the control of each individual director.
B. Every decision by a company board is subject to the approval of the members.
C. Directors may delegate their management functions.
D. In all companies the members can remove a director from office by passing an ordinary resolution in a general meeting.
QUESTION TWO
Which of the following is the best description of the significance of the decision in Saloman v Saloman & Co Ltd [1897]?
a. The notion of limited liability should not apply to companies owned and operated by a single person
b. The concept of separate legal personality cannot be used by a sole trader to avoid liability to creditors
c. A shareholder who is also involved in the management of the company is not entitled to the benefit of limited liability
d. The benefits of incorporation extend to companies effectively under the control of a single person
QUESTION THREE
Members of a company may agree to adopt a constitution which includes restrictions on the company’s activities. Which of the following statements are true?
A. Those