Outline two characteristics of a private limited company:
The shareholders have limited liability
The shareholders have unlimited liability
It has a separate legal existence from its owners
Entitled to have between 1 and 50 shareholders
Entitled to have between 1 and 99 shareholders
The company ends in the event of changes such as the death of a shareholder/director
The company does not end in the event of changes such as the death of a shareholder/ director. (Continuity of existence)
Shareholders have one vote per share at the AGM.
Shareholders have one vote each at the AGM
What do the letters NCA stand for?
National Consumer Agency
National Contact Authority
Native Control Agency
Outline two functions of the NCA.
To provide information to consumers on their rights in relation to the purchase of goods and services
To provide details about specific purchases made by consumers
To enforce the relevant consumer law and encourage compliance
To investigate suspected offences
To allow false advertising and pricing
To prohibit false pricing
To refer cases to the Director of Public Prosecutions where appropriate.
Batch Production is used when making a single, one off, unique product
True
False
In a Hire Purchase agreement legal ownership of the good transfers to the buyer when the first installment is made.
A Cash Flow deficit can be addressed by negotiating a shorter period of credit with debtors.
A sole trader is an ownership structure that benefits from limited liability.
When a company’s equity capital is greater than its debt capital it has low gearing
