Please select one option
Incorrect option
1. Which of the following statements is true TOPIC 3
A) Solvency test: is carried out to assess whether the company will be able to pay its debts
as they become due in the ordinary course of business for a period of 12 months after the
date of the test.
B) Solvency test: is carried out to assess whether the company will be able to pay its debts
as they become due in the ordinary course of business for a period of 6 months after the
date of the test
C) Solvency test: is carried out to assess whether the company will be able to pay its debts
as they become due in the ordinary course of business for a period of 18 months after the
date of the test
D) Liquidity test: is carried out to assess whether the company will be able to pay its debts
as they become due in the ordinary course of business for a period of 12 months after the
date of the test
ANSWER: D
2. Select the correct option. A special resolution of shareholders in accordance with
s115 of the Companies Act will be needed for: TOPIC 3
A) In order to change the companies name
B) In order to sell the greater part of a company’s assets
C) In order to pay over a dividend
D) World peace
ANSWER: B
3. Under what circumstances would a company be allowed to issue shares to one of its
directors or a future director? TOPIC 3
A) Passing of a special resolution
B) Passing of an ordinary resolution
C) To resist a hostile take-over
D) As part of an incentive bonus
ANSWER: A
4. Assuming that there are no special conditions in its Memorandum of Incorporation,
what authorisation would be needed for a company to pay out a distribution? TOPIC
3
A) Ordinary resolution
B) Special resolution
Incorrect option
1. Which of the following statements is true TOPIC 3
A) Solvency test: is carried out to assess whether the company will be able to pay its debts
as they become due in the ordinary course of business for a period of 12 months after the
date of the test.
B) Solvency test: is carried out to assess whether the company will be able to pay its debts
as they become due in the ordinary course of business for a period of 6 months after the
date of the test
C) Solvency test: is carried out to assess whether the company will be able to pay its debts
as they become due in the ordinary course of business for a period of 18 months after the
date of the test
D) Liquidity test: is carried out to assess whether the company will be able to pay its debts
as they become due in the ordinary course of business for a period of 12 months after the
date of the test
ANSWER: D
2. Select the correct option. A special resolution of shareholders in accordance with
s115 of the Companies Act will be needed for: TOPIC 3
A) In order to change the companies name
B) In order to sell the greater part of a company’s assets
C) In order to pay over a dividend
D) World peace
ANSWER: B
3. Under what circumstances would a company be allowed to issue shares to one of its
directors or a future director? TOPIC 3
A) Passing of a special resolution
B) Passing of an ordinary resolution
C) To resist a hostile take-over
D) As part of an incentive bonus
ANSWER: A
4. Assuming that there are no special conditions in its Memorandum of Incorporation,
what authorisation would be needed for a company to pay out a distribution? TOPIC
3
A) Ordinary resolution
B) Special resolution
