1.

There are several differences between fixed charges and floating charges. Bearing this in mind, which ONE of the following statements is NOT true?

Group of answer choices

Fixed charges provide stronger security as, upon winding up, fixed charges rank ahead of floating charges.

Fixed charges are taken over a specific, identifiable assets, whereas floating charges are usually taken over a class of assets.

A company can create a subsequent floating charge over the exact same class of assets as a prior floating charge.

A company can create a fixed charge over assets that are subject to a floating charge

A company's ability to deal with assets subject to a fixed charge, is highly limited, whereas the company is free to deal with assets subject to a floating charge.

2.

Which is the effect of the failure to register a charge with the Registrar of Companies?

Group of answer choices

A criminal offence is committed.

The security afforded to the creditor by the charge will be void.

The debt will no longer be owed to the creditor.

The directors will be in breach of their duties.

3.

A charge created on a class of assets related to the ordinary course of business is known as:-

Group of answer choices

Floating

None of those listed

Specific

Fixed

4.

According to the creditor hierarchy, list the following from high risk to low risk:

1.Ordinary share capital

2.Preference share capital

3 .Trade creditors

4.Bank loan with fixed and floating charges

Group of answer choices

1 2 3 4

4 3 2 1

1 2 4 3

1 3 4 2