W240 Business Law - Companies

Which of the following business structures is incorporated?

• Limited Partnership

• Ordinary Partnership

• Limited Liability Partnership

• Sole Trader

2) Which of the following statements applies to partnerships?

• A partnership consists of one person.

• A partnership’s objective is to make a profit.

• A partnership can be a non-profit making venture.

• A partnership is limited to two partners.

3) Which of the following statements about a Limited Liability Partnership (LLP) is not true?

• An LLP must be registered at Companies House

• An LLP has members rather than partners

• An LLP has its own corporate personality

• The members of an LLP will be personally liable for any debts remaining once the assets of the LLP are exhausted

4) In the absence of a written agreement, s.24 of the Partnership Act 1890 provides for a default position:

• All the partners are entitled to share equally in the capital and profits of the business and must contribute equally towards the losses

• Partners are entitled to share profits in relation to the proportion of time invested in the partnership

• The partnership and not the partners are responsible for partnership debts

• Profits are entitled to be shared in proportion to the capital invested.

5) A limited liability partnership is best defined as:

• an unincorporated body with unlimited liability for partners

• an incorporated body with its members benefiting from limited liability

• a registered body that comprises of two types of partner; general with unlimited liability and management functions, coupled with limited partners with limited liability.

• An incorporated body, but where members have unlimited liability

6) Which of the following is not a feature of a limited company?

• Capacity to contract prior to incorporation

• Corporate personality

• Limited liability for members

• Perpetual succession

7) What name is given to someone who undertakes to form a company with reference to a given project, to set it going, and who takes the necessary steps to accomplish that purpose?

• Shareholder

• Director

• Promoter

• Partner

8) Lord Sumption in Petrodel Resources Ltd v Prest [2013] UKSC 34 in reviewing case law concerning supposed ‘piercing of the corporate veil’ distinguished between two different scenarios, these were;

• a) confiscation and illusion

• concealment and illusion

• confiscation and evasion

• concealment and evasion

9) In relation to an amendment of a company’s articles which of the following is true:

• An article cannot be amended if it leads to a breach of contract.

• The right to amend an article cannot contradict a statutory right, including mandatory provisions under the Companies Act 2006

• Entrenched articles are not permissible

• Alterations can just be of benefit to majority shareholders

10) Which of the following parties cannot enforce a company’s articles:

• Company to Member

• Member to Company

• Employee to Company

• Member to Member