MCQ: Please answer only. No explaination needed 1) For an action to be directly binding on the company the person acting must have...

Select one:

a)A contract of employment

b)Formal and substantive authority

c)Vicarious liability

d)Separate legal entity status

2)A contract entered directly is binding against the company if it is in writing and...

Select one:

a)Signed in accordance with the Corporations Act by company officers who have formal authority

b)Signed by every company director present at the board meeting

c)Witnessed by a minimum of two senior executives

d)Registered with ASIC

3))What is a purpose of corporations law?

Select one:

a)To control or regulate the ways corporations can be used and operated by their directors

b)To prohibit corporations from exceeding their constitutional limitation

c)To extend the liability of corporate obligations to shareholders

d)To ensure that corporations do not fail and financially devastate their shareholders

4)What is imperialism?

Select one:

a)A philosophical theory which emphasises the existence of the individual person as a free and responsible agent

b)A policy of extending a country's power and influence

c)A political and economic theory forming the basis of communism

d)A political and social philosophy that promotes individual rights, civil liberties, democracy, and free enterprise

5)Which of the following is a directors' duty?

Select one:

a)The duty to generate a return for investors

b)The duty to comply with shareholder demands

c)The duty to exercise powers with care, skill, and diligence

d)None of the above

6)A third party may assume under s.129(1) of the Corporations Act that...

Select one:

a)The company is solvent

b)The company's internal governance rules have been complied with

c)The company has a constitution

d)The company is registered with ASIC

7)If the third party either knew or suspected that a statutory assumption was incorrect then...

Select one:

a)They will still be entitled to make that assumption

b)They will be obligated to report the matter to ASIC

c)They can terminate the contract and sue for damages

d)They will not be entitled to make that assumption

8)What does the doctrine of ultra vires mean?

Select one:

a)To obey one's duty

b)To behave in an exemplary manner

c)To act beyond one's authority

d)To embarrass one's friends and family

9)Corporations have the legal capacity to...

Select one:

a)Buy, own, and sell property

b)Sue and be sued

c)Enter contracts on their own behalf

d)All of the above

10)What are the set of default rules a company can choose to govern their internal matters?

Select one:

a)The replaceable rules

b)The board charter

c)The company constitution

d)The magna carta

11)For the earliest corporations, operating beyond their constitutional limitations was...

Select one:

a)Courageous and strongly encouraged

b)Sensible and advantageous

c)Foolish and strongly discouraged

d)Forbidden and punishable by law

12)What is limited liability?

Select one:

a)Directors are not liable for breaches of directors' duties

b)The debts and obligations of the company belong to the shareholders

c)A company is not liable for the actions of its employees

d)The debts and obligations of the company do not belong to the shareholders

13)Which section of the Corporations Act states that the doctrine of ultra vires no longer limits a company's powers and an action is not invalid merely because it is outside the company's objects?

Select one:

a)Section 125

b)Section 136

c)Section 140

d)Section 152

14)The company rules create a statutory contract between...

Select one:

a)A member and contracting third parties

b)A director and ASIC

c)The company and ASIC

d)A member and each other member

15)What is the name of the liability of companies for the acts committed by their employees in the scope of their employment and the acts of their agents?

Select one:

a)Vicarious liability

b)Limited liability

c)Professional liability

d)Statutory liability

16)The earliest corporations were created in Europe as...

Select one:

a)Not-for-profit organisations to build institutions for the public good

b)Profitable organisations to generate returns for shareholders

c)Quasi-governmental organisations to further imperialist objectives

d)Industry organisations to represent the interests of specific professions

17)What should a company constitution include?

Select one:

a)Biographies of company directors and senior executives

b)Guidelines for disciplinary action to be taken against underperforming managers

c)Processes to change the constitution in response to the changing nature of the company

d)Pay rates for company directors and employees

18)For an agent to have apparent authority there must be...

Select one:

a)A representation that the agent has authority

b)A person with actual authority making the representation

c)A third party that relies on the representation

d)All of the avobe

19)Which company was established by the Dutch government in 1602 and granted a 21-year monopoly on Dutch spice trade with Asia.?A company can also be bound to a contract indirectly through the actions of an agent if...

Select one:

a)The agent had no knowledge of the contract

b)The company had a constitution

c)The agent was acting ultra vires

d)The agent had apparent authority to bind the company

20)Which company was established by the Dutch government in 1602 and granted a 21-year monopoly on Dutch spice trade with Asia.?

Select one:

a)The Muscovy Company

b)The East India Company

c)The South Sea Company

d)The Dutch East India Company