Summary AUE1601 QUIZ 5

Please select one option Incorrect option

1. What are the only categories of companies that the Companies Act provides for?
TOPIC 1
A) state-owned entities
B) non-profit companies
C) for-profit companies
D) profit and non-profit companies
ANSWER: D

2. What does the CIPC stand for? TOPIC 1

a) Companies and Intellectual Properties Commission
b) Companies In Planning Commission
c) Centre for Intellectual Property Corporation
d) Certified Institute of Profit Companies
ANSWER: A

3. What does MOI stand for? TOPIC 1

a) Meeting of Interest
b) Membership of Interest
c) Memorandum of Incorporation
d) Memorandum of Interest
ANSWER: C

4. What is the consequence if a provision of the MOI contravenes or is inconsistent with the
Companies Act? TOPIC 1

a) The Companies Act should be amended
b) The provision is void
c) None, as they are allowed to contradict each other
d) The MOI takes precedence over the Companies Act
ANSWER: B

5. For the purposes of the Companies Act 2008, a juristic person is related to another
juristic person if: TOPIC 1 (Source: Graded Questions on Auditing 2022- Q13.6 part 1)

I. Either of them indirectly controls the business of the other
II. Either of them holds at least 10% of the shares of the other
III. An individual directly controls both of them
IV. Either is a subsidiary of the other

a) I, II, III & IV
b) I, III & IV
c) I & IV only
d) II & III only
ANSWER: B