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Free BA4 Exam Braindumps
BA4 - Fundamentals of Ethics, Corporate Governance and Business Law Questions 261–265 (page: 54)

Updated On: 9-Feb-2026
Page 54 of 102
PDF with 661 Questions

ABC Ltd has resolved to purchase the business of ST Ltd for £500,000. ABC Ltd is to pay ST Ltd for the business by issuing ordinary £1 shares rather than cash. As the market value of ABC Ltd's shares is £5 per share, ABC Ltd is to issue to ST Ltd 100,000 ordinary £1 shares. Which of the following is incorrect?

  1. The issue is lawful as ABC Ltd may issue its shares for a non-cash consideration.
  2. The issue is lawful because ABC Ltd does not need to first offer the new shares to its existing members.
  3. The issue is only lawful if the directors have the necessary authority to issue the shares.
  4. The issue is only lawful if ABC Ltd arranges to have the business valued by the company's auditor.

Answer(s): D



Tee Ltd has contracted to use Vee Ltd's "Grand Hotel" for a business conference. Which of the following would not be regarded as a valid excuse for Vee Ltd for the unavailability of the hotel on the agreed date?

(i) The hotel was closed due to flood damage.

(ii) The hotel was double booked.

(iii) The hotel manager had arranged to have the hotel redecorated; the decorators had failed to complete the work by the agreed date.

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

Answer(s): C



Seller Ltd is a wholesaler of electrical goods which it sells to retailers only Which one of the following statements is correct in relation to the exclusion of the conditions which are implied into contracts for the sale of goods by sections 12 to 15 of the Sale of Goods Act 1979?

  1. As Seller Ltd is only involved in non-consumer sales it may exclude all the conditions implied by sections 12 to 15 of the Sale of Goods Act 1979
  2. Seller Ltd cannot exclude section 12 but can exclude sections 13 to 15 where reasonable
  3. Seller Ltd may exclude section 12 where reasonable but not sections 13 to 15
  4. Sections 12 to 15 of the Sale of Goods Act cannot be excluded in any non-consumer sales

Answer(s): B



The UK Corporate Governance Code is primarily directed at which type of business

organization?

  1. All limited liability business organizations
  2. All business organizations
  3. All private companies
  4. All listed public companies

Answer(s): D



Rank the following, starting with the highest court:

(i) Crown Court

(ii) Supreme Court

(iii) Magistrates

(iv) Court of Appeal (Criminal)

  1. (iii), (i), (iv), (ii)
  2. (i), (ii), (iii), (iv)
  3. (ii), (iv), (i), (iii)
  4. (iv), (ii), (i), (iii)

Answer(s): C



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