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BA4 Exam Dumps : Fundamentals of Ethics, Corporate Governance and Business Law

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Fundamentals of Ethics, Corporate Governance and Business Law Questions and Answers

Question 1

Which of the following is correct?

(i) The provisions of the Memorandum of Association do not form a contract between the members and the company.

(ii) The provisions of the Articles of Association form a contract between the members and the company.

(iii)      One member may sue another directly on the provisions in the Articles of Association which contain ordinary membership rights.

Options:

A.

(i) only

B.

(ii) only

C.

(i) and (ii) only

D.

(ii) and (iii) only

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Question 2

An auditor would trace copies of sales invoices lo shipping documents in order to check for which of the following errors?

Options:

A.

Goods which have been invoiced have not been sent to customers

B.

Goods which were sent to customers have not been recorded in the individual customer's ledger account

C.

Goods which have been invoiced have not been recorded in the sales ledger.

D.

Goods sent to customers have not been invoiced

Question 3

Which of the following statements is correct in relation to the ability of a company to contract?

Options:

A.

If a company has restricted the ability of its directors to contact and the directors ignore the restrictions, then the outsiders may not enforce the contract.

B.

The shareholders of a company have the ability to enter into a contract on behalf of the company, irrespective of any restrictions on the directors.

C.

If a company wishes to restrict the ability of its directors to enter into particular contracts it may do so by placing restrictions on the directors in its

articles of association

D.

If the shareholders learn that the directors are about to ignore the restrictions placed upon their ability to contract by the company the shareholders are unable to prevent the directors from proceeding