F4 (CL – GLO) – Chapter 16 – PART E – CBE MCQs – ACCA

These are ACCA F4 Global (CL/LW) Corporate and Business Law MCQs for Part-E of the Syllabus “Capital and the financing of companies”.

These multiple-choice questions (MCQs) are designed to help ACCA F4 Global students to better understand the exam format. We aim to instill in students the habit of practicing online for their CBE exams. By doing so, students can reduce exam stress and prepare more effectively.

Please note:

  • Students should not attempt these MCQs until they have studied the entire chapter.
  • All questions are compulsory, so please do not skip any.

We hope that these MCQs will be a valuable resource for students preparing for the ACCA F4 Global (CL/LW) exam.

INFORMATION ABOUT THESE CBE MCQs Test/Quiz

Course:ACCA – Association of Chartered Certified Accountants
Fundamental Level:Applied Skills
Subject:Corporate and Business Law
Paper:F4 Global – CL/LW
Chapter:Loan capital
Chapter Number:16 of the Practice and Exam Kit
Syllabus Area:E – “Capital and the financing of companies”
Questions Type:CBE MCQs
Exam Section:Section A

Syllabus Area

These Multiple Choice Questions (MCQs) cover the Syllabus Area Part E of the Syllabus; “Capital and the financing of companies” of ACCA F4 Global (CL/LW) Corporate and Business Law Module.

Time

These MCQs are not time-bound. Take your time and solve them without stress. Pay proper attention and focus. Do not rush or hesitate.

Result

Students will get their F4 Global CBE MCQs Test results after they finish the entire test. They will also be able to see the correct and incorrect answers, as well as explanations for the incorrect questions.

Types of Questions

MCQs: Choose one from the given options.
Multiple choice: Choose all those answers which seem correct/ or incorrect to you, as per the requirement of the question. Keep your eye on the wording “( select all those which are correct/ or incorrect)“.
Drop-down: Select from the list provided.
Type numbers: Type your answer in numbers as per the requirement of the question.

 

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F4 (GLO) - Chapter 16 - Part E - MCQs

Course: ACCA - Association of Chartered Certified Accountants
Subject:
F4 (LW/CL) (GLOBAL) - Corporate And Business Law
Syllabus Area: E - Capital and the financing of companies
Chapter in Kit: 16 - Loan capital
Exam Section: Section A
Questions type: MCQs
Time: No Time Limit

INSTRUCTIONS

  1. If you are using mobile, turn on the mobile rotation and solve the MCQs on wide screen for better experience.

REQUEST

  1. Please rate the quiz and give us feedback once you completed the quiz.
  2. Share with ACCA students on social media such as, Facebook Groups, Whatsapp, Telegram, etc.

1 / 15

Which of the following is true regarding the borrowing powers of companies?

2 / 15

In relation to debentures issued as a series, which of the following describes the term pari passu?

3 / 15

Which of the following differences between share capital and debentures is correct?

4 / 15

Which of the following charges on the same asset, all of which have been properly registered, has the highest priority? Assume all chargeholders are unaware of the other charges.

5 / 15

Which of the following events will cause a floating charge to crystallise?

6 / 15

How many days after creation must a charge be registered in order for it to be valid and enforceable?

7 / 15

Which of the following is true concerning late registration of a company charge?

8 / 15

Which of the following statements regarding directors' borrowing powers is correct?

9 / 15

Which of the following MUST be created using a debenture trust deed?

10 / 15

Which TWO of the following are advantages of using a debenture trust deed?

  1. The deed creates a charge or charges over the company's assets which creates security
  2. A single trustee of the debentureholders is appointed so the company only has to deal with one person
  3. Debentures covered by a debenture trust deed have a higher priority of repayment on liquidation than debentures not covered by a deed
  4. The process of selling a debenture covered by a debenture trust deed is substantially faster than the process of selling a debenture not covered by a debenture trust deed.

11 / 15

Which of the following statements regarding the differences between loan capital and share capital is correct?

12 / 15

Which of the following statements regarding the differences between loan capital and share capital is                correct?

13 / 15

Which of the following is the purpose of a 'negative pledge' clause on a company charge?

14 / 15

The holder of a floating charge may protect their priority by including in the terms of the charge a clause that prevents the borrower from creating a fixed charge on the same asset.

What is the name given to such a clause?

15 / 15

Which TWO of the following are true concerning the registration of company charges?

  1. Charges must be registered within 21 days of creation
  2. If a charge is not registered on time then the company and its officers who created the charge are liable to a fine
  3. The Registrar of Companies is permitted to rectify a mistake in the registration documents of a charge with the permission of the chargeholder
  4. Non-registered charges are valid and enforceable with the permission of the Registrar of Companies

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