Which of the following regarding a limited liability partnership is true?
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1 .An employer provides safety goggles for his employees. Ron refuses to wear them. The employer knows this but does nothing to compel Ron to wear the goggles. Molten metal flies into Ron’s face causing severe burns and the loss of sight in one eye. What is the basis for a claim that the employer is in breach of his common law duty of care?
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2 .The authority of one person to make binding commitments with third parties for someone else can be described as which of the following?
A Principal B Agency C Partnership D Condition
3 .Which of the following does NOT typically grant actual express authority?
A A power of attorney B An employment contract C partnership agreement D special resolution
4 .The chief executive officer of a company would be viewed as having which type of authority?
A Express authority B Implied authority C Apparent authority
5 .A restaurant is owned by a partnership whose partners are Ted, Lauren, and Richard. Laurenand Richard are actively involved in the business and run the restaurant on a daily basis. Tedinitially contributed money to form the partnership and shares in profits of the business but does not participate in the operations of the restaurant.Ted can be described as which of the following types of partners?
A General partner B Salaried partner C Fixed share partner D Sleeping partner
7 .A special resolution of a company must have which of the following percentage of members favour to pass?
A 50% B 55% C 75% D 80%
8 .John was engaged to act as promoter for VVV Ltd. The founders transferred money to him to purchase inventory, which he agreed to do before the company’s incorporation. John spent the money buying used cars and selling them for a profit.Which of the following is correct?
A John breached his statutory duties under the Companies Act 2006 B John breached his fiduciary duties and is liable for the profit he made C John breached his fiduciary duties but the company has no claim against him D John did not breached any duties as the company had not yet been formed
9 .Which of the following statements regarding consideration received for the allotment of new shares is correct?
A It must be cash consideration B It need not be adequate but it must be sufficient C It may be a non-cash asset but cannot be services performed D It must be adequate valuable consideration
10 .Which of the following may seek approval of the court in order to proceed with a reduction in capital?
A All private and public companies B Only private companies C Only public companies D Only listed public companies
