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- 1. Multiple Choice
Which of the following is not one the underlying principles of the corporate governance Combined Code of Practice?
integrity
acceptability
accountability
openness
- 2. Multiple Choice
External audit of the accounts of a limited company is required
at the discretion of the shareholders
because it is demanded by the company’s bankers
by the Companies Act 2016
to detect fraud
- 3. Multiple Choice
Directors’ responsibilities are unlikely to include
a duty of care
a duty to keep proper accounting records
a fiduciary duty
a duty to propose high dividends for shareholders
- 4. Multiple Choice
A company may become insolvent if it
makes a loss
has negative working capital
cannot pay creditors in full after realisation of its assets
cannot meet its budgeted level of profit
- 5. Multiple Choice
A director of a limited company may not be liable for wrongful trading if he or she
introduced into the balance sheet an asset based on a valuation of its brands sufficient to meet any shortfall
brought in some expected sales from next year into the current year.
increased the valuation of its inventories to cover any potential shortfall
took every step to minimise the potential loss to creditors
- 6. Multiple Choice
Disqualification of directors may result from breaches under the
Companies Act 2016 and Insolvency Act 1986
Financial Services Act 1986
Sales of Goods Act 1979
Health and Safety at Work Act 1974
- 7. Multiple Choice
Which of the following actions will not help directors to protect themselves from non-compliance with their obligations and responsibilities ?
Seeking professional help
Keeping themselves fully informed about company affairs
Ensuring that regular management accounts are prepared by the company.
Including a disclaimer clause in their service contracts
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