FA4: CHAPTER 1: INTRODUCTION TO COMPANY

Question 1: Which of the following is NOT explain about government link companies?

• A. GLC could be private or public and listed companies.

• B. Government may hold a stake in the companies using a holding company

• C. GLCs are corporate entities in which the government owns some or all of the share capital. 

• D. The ownership of GCL is usually retained within its family members. 

2. Question 2: “A company is formed on the principle on the having no limit placed on the liability of its members.”

Based on the above statement, what is the classification of companies?

• A.  Company limited by shares

• B. Company limited by guarantee

• C. Unlimited Liability Companies

• D. Limited liability Companies

Question 3: Compilation of the reports and financial statement required by law or otherwise to be sent to shareholders ________before the general meeting.

• A.         7 days

• B.         14 days

• C.         18 days

• D.         21 days

Question 4: Annual report may comprise the following, EXCEPT:

• A.         Audit committee report

• B.         Social responsibility report

• C.         Financial Statements

• D.         Reconciliation Statement

Question 5: Which of the following statutes governing financial reporting by companies?

               I.           Business Act 1956

              II.           Companies Act 1965

            III.           Companies Act 2016

           IV.           Financial Reporting Act 1997

• A.         I,II,III and IV

• B.         II, III, and IV

• C.         II and II

• D.         III and IV

Question 6: A Company limited by guarantee shall be?

• A.     Public and private companies.

• B.     Public Company only

• C.     Private Company only.

• D.     Exempt private Company.

Question 7: ” Both MOA and AOA must be signed by at least two persons who are to be the first directors of the proposed company.”

Based on the above statement, it is referring to?

• A.     Company Act 1965

• B.     Company Act 2016

• C.     Unlimited Liability Companies

• D.     Limited liability Companies

Question 8: Areas covered in the Charmain’s Statement could include the following, EXCEPT:

• A.     Economic performance

• B.     Social responsibility

• C.     Dividend

• D.     Financial Position

Question 9: Under the Company Act 2016, a private company is required to have the following characteristics, EXCEPT:

 

• A.         It restricts the transfer of its shares.

• B.         It is a company limited by shares.

• C.         It cannot invite the public to deposit money with the company.

• D.         It can invite the public to deposit money with the company

Question 10: Which of the following is the primary purpose of a company's financial statements?

• A. To provide information to the company’s competitors

• B. To show the financial position and performance to shareholders, creditors, and other stakeholders

• C. To determine the company’s tax liabilities

• D. To calculate the salaries of company executives