Online Access Free BA4 Exam Questions

Which of the following is an advantage of carrying on a business through the medium of a private company limited by shares?

• A.The ability to keep the articles of association private
• B.The ability to carry on business without holding an annual general meeting
• C.The fact that business can be carried on with a minimum of two directors
• D.The fact that business can be earned on with a minimum of one company secretary.

X was employed by Bee Ltd as its senior design consultant. X contracted with Bee Ltd that, when his employment with the company ceased, he would not act in competition with it or solicit its customers.
After X left Bee Ltd, he registered a company called Cee Ltd which immediately began working in competition with Bee Ltd and soliciting its customers. Bee Ltd complained to X about this conduct, but X stated that, as the work was being undertaken by Cee Ltd, a separate legal entity, X had not acted in breach of the agreement with Bee Ltd.
Which of the following statements is correct?

• A.If the court finds that Cee Ltd was set up by X to avoid the agreement with Bee Ltd, it will "lift the corporate veil" and enforce X's contract with Bee Ltd against X and Cee Ltd.
• B.X is correct and cannot be said to be in breach of the agreement with Bee Ltd.
• C.The agreement between Bee Ltd and X is of no legal effect, as it attempts to regulate X's activities after he has left Bee Ltd's employment.
• D.Cee Ltd will be bound by the agreement because a company is always liable for the actions of its shareholders.

DGH is a company operating in the oil and gas industry, which is heavily regulated. The government is considering introducing a new law which is likely to result in a dramatic cut in profitability for DGH.
Which of the following is NOT a legitimate method for DGH to influence government policy in its own best interests?

• A.Offering financial incentives to public officials to use their influence on DGH's behalf
• B.Inviting government ministers to attend the next board meeting of DGH to allow the directors to put forward their view
• C.Employing lobbyists to put DGH's case to ministers or civil servants.
• D.Attempting to influence public opinion in order to put pressure on the legislative agenda

Which of the following is a common law remedy?

• A.Rescission
• B.Specific performance
• C.An injunction
• D.Damages

The body responsible for reviewing the accountancy profession worldwide is:

• A.The Professional Oversight Board for Accountancy
• B.The Financial Review Board
• C.The International Federation of Accountants
• D.The Financial Reporting Council