Online Access Free BA4 Practice Test

Which ONE of the following is an example of a safeguard in the work environment as opposed to a safeguard created by the profession, legislation or regulation?

• A.Continuing professional development requirements
• B.Educational, training and experience requirements for entry into the profession
• C.Corporate governance regulations
• D.Leadership of a company that stresses the importance of compliance with the fundamental principles

Which of the following is INCORRECT?

• A.A person may be appointed company secretary for life
• B.A company secretary may be dismissed by the board
• C.A company secretary of a public company must be appropriately qualified
• D.A company secretary is an officer and not an employee of the company

M wrote to A (Accountants), asking if he could rely on the firm's audit report of B Ltd. M told A (Accountants), confidentially, that he was considering making a take-over bid for B Ltd. A (Accountants) advised M that he could rely on the report. As a result, M relied on the report and purchased the entire share capital of B Ltd. M has now discovered that he has paid considerably more for the shares than they were worth, as the company's stock had been negligently over-valued in the audit report.
Which of the following is correct?

• A.M can recover damages from A (Accountants) for breach of contract.
• B.M cannot hold A (Accountants) responsible, as he did not pay for their advice.
• C.M can sue A (Accountants) in the tort of negligence as they knew that M intended to rely on their report and the purpose for which he intended to use it.
• D.M cannot recover compensation from A (Accountants) in tort, as they only owe a contractual duty to B Ltd.

Which of the following is INCORRECT regarding the differences between a general partnership and a company limited by shares?
(i) Both a partnership and a company are formed by registration with the Registrar of Companies.
(ii) All partners are agents of the firm and all directors are agents of the company.
(iii) All partners are fully liable for the firm's debts and the company is fully liable for its own debts.

• A.(iii) only
• B.(i) and (iii) only
• C.(i) only
• D.(i) and (ii) only

Which of the following is incorrect in relation to the remedy of damages?

• A.A penalty clause in a contract cannot be enforced.
• B.Damages cannot be claimed for a breach of a contract to provide personal services.
• C.Mitigation and remoteness of damage are irrelevant where a creditor is suing to recover an agreed debt.
• D.A victim of a breach of contract may be unable to recover damages if he has failed to mitigate his loss.