The journey of me


Wednesday, October 1, 2014

BUS203 Quiz2

Which of the following describe(s) the effect of a winding-up order? 
I.    All legal proceedings against the company may be stayed or halted.
II.   The court has the power to approve a list of contributories who are required to contribute assets to the company in the event of a winding-up.
III.  The directors cease to have the power of managing the company.
IV.  All contracts of employment between the company and its employees are halted.

I, II, III and IV

A public debenture such as a bond involves ____________.
I.   a debt which has been offered for public purchase 
II. debentures which may be sold at a discount by the issuing company
III. interest that is payable by the issuing company, based on the face value of the debenture
IV. a redemption by the issuing company on the maturity date of the debenture
I, II, III and IV

For take-overs relating to a public listed company on the Singapore Exchange, which of the following statutory and/or non-statutory rules would apply?
I.    Companies Act of Singapore
II.   The Singapore Code on Take-overs and Mergers
III.  The Singapore Exchange's Listing Manuals
IV.  The Securities and Futures Act of Singapore
I and IV

Analyse the usual difference between equity financing and debt financing.
In equity financing, a company would usually not have to make any repayments. In debt financing, a company would usually have to make repayments of principal, together with interest.

Generally, a prospectus must disclose all the information which ____________.
investors and their professional advisers would reasonably require to make an informed assessment of an investment.

In the case of a winding-up by the court, the liquidator must _________ .
apply to the court for an order of dissolution. Upon the grant of the order, the company is dissolved.

Which of the following best describes a floating charge?
I.   A security interest granted over a company's specific assets. The company can no longer sell those assets.
II.  A security interest granted over a company's assets generally. The company is able to use and sell those assets.
III. Upon the occurrence of certain specified events, the floating charge will crystallize and becomes fixed over specific assets.
II and III

Which of the following best describes a scheme of arrangement?
A company enters into an arrangement with its creditors to compromise its liabilities towards the creditors, with the approval of the court.

During the period of judicial management, there is a period of _________.
court-ordered moratorium which prevents the creditors from taking legal action against the company.

Under the Companies Act of Singapore, fixed charges over certain assets must be registered. What is a consequence of failing to register such charges with the Accounting and Corporate Regulatory Authority of Singapore?
If the charge is not registered, the lender cannot enforce his security against the liquidator or any other creditor of the company. The debt becomes unsecured.

There are two types of winding-up: _________ and _________.
voluntary winding-up; winding-up by the court

In voluntary winding-up, _________ .
the members of the company voluntarily decide to liquidate the company.

Which of the following is a criterion for a liquidator of a company, regardless of whether the liquidator is appointed by the court or by the members of the company?
An approved company auditor who has been approved to act as a company liquidator

Which of the following best describes voluntary arrangement?
An alternative to bankruptcy whereby the insolvent person is permitted to enter into voluntary arrangements with his creditors on rescheduling his payment of debts, wholly or partially.

A company which is already listed on the Singapore Exchange can raise fresh capital by ____________.
I.   issuing new shares via an initial public offering. 
II.  issuing additional shares through a placement 
III. issuing additional shares via a rights issue.
II and III

If, despite undergoing a scheme of arrangement, receivership or judicial management, a company fails to overcome its insolvency, then it is likely that
winding-up will follow and the company will be dissolved.

Which the following is/are power(s) of the liquidator?
I.   Bring or defend any legal proceedings against the company.
II.  Make compromises with any class of creditors.
III. Sell the assets of the company via public auction, public tender or private contract.
IV.  Appoint an agent to act on his behalf.
I, II, III and IV

Under the Securities and Futures Act of Singapore, there are some exemptions when a prospectus is not required to be issued when the company is making an offer of securities. Which of the following illustrates such exemptions? 
I.    A private placement of securities to less than 50 persons within a 12-month period.
II.  Offers of securities where the total amount raised by the company is less than S$5 million over a 12-month period.
III. Offers of securities to "accredited investors", i.e, investors with a net worth of at least S$10 million.
IV.  An offer of securities made in connection with a take-over scheme.
I, II, III and IV

What is a key objective of the regulatory framework relating to the capital market in Singapore?
To maintain a capital market that is free from insider trading, deceptive behavior and market manipulation.

RESULTS: 95/100

No comments:

Post a Comment