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Chapter 1: Regulations and Business Structure

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What are the functions of Security Commission (SC)?

a)

to regulate all matters relating to unit trust schemes

b)

to advise the Minister on all matters relating to securities and futures industries

c)

to regulate all matters relating to securities and futures contracts

d)

All the above

2.

The Securities Commission (SC) do not have any authority to amend or repeal the rules of Bursa Malaysia Securities Berhad

a)

TRUE

b)

FALSE

3.

Which of the following is NOT the specific duties on directors that are imposed by Company Act 1965?

a)

To keep accounts

b)

To prepare balance sheets for each financial year

c)

To be actively involved in the running of the company

d)

To ensure directors' report to be written for each financial year

4.

Directors have duties under both Common Law and the Companies Act 1965. These duties require them, except:

a)

To refrain from abusing their directorship or the knowledge they have obtained by virtue of it.

b)

To avoid situations that might conflict with their duties as directors (conflict of interest).

c)

To conduct business with the company before the company has approved a transaction by a resolution.

d)

None of the above

5.

What percentage of shareholders is needed to pass special resolution?

a)

It must be unanimous

b)

Not less than 90%.

c)

Not less than 75%

d)

More than 50%

6.

After launched a branding exercise, Malaysia Securities Exchange Berhad changed its name to____?

a)

Bursa Malaysia Berhad

b)

Bursa Malaysia Depository Sdn Bhd

c)

Bursa Malaysia Securities Clearing Sdn Bhd

7.

Below is the regulatory principles except

a)

Promoting capital formation

b)

Transparency

c)

Outcome focused

8.

Which of the following is the time period of CMP2?

a)

2001-2011

b)

2011-2020

c)

2021-2025

9.

The Parliament consists of 2 houses which are__

a)

House of Representatives and House Lannister

b)

The Senate and the Council of Elrond

c)

The Senate and the Federation

d)

House of Representatives and the Senate

10.

Select the TRUE statement from the following in reference to sources of Malaysian Law.

a)

Subsidiary legislation is categorized under common law

b)

Islamic law was the law of the land before the colonization

c)

State Constitution is the supreme law of the land in Malaysia

d)

English law is categorized as written law

11.

What is the goal of the International Organization of Securities Commissions (IOSCO)?

a)

responsible for regulating the financial markets of member nations.

b)

promoting the use of International Financial Reporting Standards (IFRS) and the convergence of national accounting standards.

c)

ensuring that markets are fair, efficient, and transparent

d)

evaluates a company's financial position spanning a period of time

12.

Which of the following activities are prohibited for Participating Organizations in terms of disposal, purchase, acquisition, sale, or exchange of securities, as stated in Part V Division 1 of CMSA?

a)

False trading

b)

Stock market manipulations

c)

Fraudulently inducing persons to deal in securities

d)

All the above

13.

At least how many heads should a Participating Organization have?

a)

One

b)

Two

c)

Three

d)

Four

14.

Which one is the correct Head being jointly responsible for any area relating to trading in securities that has not been assigned by the Participating Organisation to be within the responsibility of any Head of Dealing?

a)

Compliance Officers

b)

Head of Compliance

c)

Head of Operations

d)

 Head of Dealing

15.

Name the entity that has a separate legal person from its members, and these members are only liable for the cost of the shares they have purchased

a)

Partnership

b)

Sole Proprietorship

c)

Limited Liability Company

d)

Franchise

16.

A partnership pays

a)

Company tax

b)

Personal tax

c)

both company tax and personal tax

d)

no tax

17.

Partnership law is governed by which legislation?

a)

The Partnership Act 1961

b)

The Companies Acts 1963-2013

c)

The Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010

d)

The Partnership Act 2015

18.

Which year that Bursa Malaysia Depository Sdn Bhd was incorporated and approved by the Minister of Finance to run the central depository in Malaysia?

a)

26 October 1986

b)

26 October 1989

c)

26 October 1987

d)

26 October 1988

19.

Which of the following that the Rules of Bursa Malaysia Securities Clearing Sdn Bhd cover?

a)

General Rules

b)

Default Rules

c)

Clearing and settlement-institutional settlement service

d)

Disciplinary Action

20.

A financial institution which wishes to carry on the business of banking, being a finance company, merchant banking, or discount house business, must hold a valid licence granted by Bank Negara Malaysia (BNM) to carry on such business. What is the financial act that stated above?

a)

Islamic Financial Service Act 2013

b)

Banking and Financial Institutions Act 1989

c)

Financial Services Act 2013

d)

Development Financial Institutions Act 2002 (Act 618)