Zed Bank plc has agreed to allow Exe Ltd an overdraft of £50,000 subject to a fixed and floating charge over almost all of the company's assets. In addition, the directors of Exe Ltd have been required to personally guarantee the overdraft.
Which of the following is correct?
(i) The directors could face bankruptcy if they are called upon to honour the guarantee.
(ii) In this case the directors do not enjoy limited liability as they are liable on the guarantee if the company cannot pay.
(iii) The directors could only be required to honor the guarantee if the company's assets proved insufficient to meet the overdraft.

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

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Which ONE of the following business organizations could be used by Tom to carry on a business consultancy on his own account?
(i) A private company limited by shares
(ii) A sole tradership.
(iii) A limited liability partnership

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

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The Remuneration Committee is recognised as a board sub-committee under the Corporate Governance Code Which of the following are objectives of the Remuneration Committee?
1. The Committee should be, and should be seen to be, independent with access to its own external advice or consultants
2 The Committee is required to establish and agree pension provision for all board members
3. The Committee's reporting is clear, concise and gives the reader of the annual report a bird's eye view of policy payments and the rationale behind them

• A.1 and 3 only
• B.2 only
• C.1 only
• D.2 and 3 only

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Which of the following is NOT one of the main requirements of the UK Corporate Governance Code?

• A.The separation of the roles of Chairman and Chief Executive
• B.The appointment of independent non-executive directors to the Board
• C.The establishment of an audit committee
• D.The appointment of a senior external auditor to the Board

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The Professional Accountant should always:

• A.Think accurately; act purposefully; continue to learn and develop
• B.Think subjectively; act professionally; continue to question
• C.Think objectively; act professionally; continue to learn and develop
• D.Think professionally; act personably; continue to question

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