Free BA4 Exam Braindumps (page: 38)

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Which of the following is NOT an essential element of a valid simple contract?

  1. Agreement.
  2. Written terms.
  3. Intention to create legal relations.
  4. Consideration.

Answer(s): B



Which of the following is correct in relation to the control of boards of directors of public limited companies?

i) The boards of public limited companies are under the legal control of the shareholders

ii) The majority of the shares in public limited companies are held by institutional investors who are more concerned with capital growth and income than the internal management of public limited companies

iii) As a general rule, private investors in the shares of public limited companies have insufficient power to influence the activities of the board.

  1. (i) only
  2. (i) and (ii) only
  3. (i) and (iii) only
  4. (i),(ii) and (iii)

Answer(s): D



As a member of the audit team of a large company, J has discovered that one of his close friends is in a part of the business which is going to be sold off, and his friend is likely to face redundancy. What should he do?

  1. Do nothing: professionally, J is bound to respect the confidentiality of the information he has received
  2. Tell his friend: he has an obligation to his friendship
  3. Leak the information: that way he can let his friend know, but the information won't be traced back to J
  4. Resign: J can't carry on working at the company whilst he is personally compromised

Answer(s): A



Which of the following are recommended by the UK Corporate Governance Code?

(i) The roles of Chairman and Managing Director should be separated

(ii) A senior independent director should be identified and available as a contact for shareholders

(iii) At least one half of the board as a whole should be made up of independent non- executive directors

  1. (i) only
  2. (i) and (ii) only
  3. (i) and (iii) only
  4. (i), (ii) and (iii)

Answer(s): D






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