Define the term prospectus and explain the contents of a prospectus ANSWER A prospectus as “any prospectus, notice circular, advertisement or other invitation offering to the public for subscription or purchase any shares or debentures of a company.” The contents Open …
Category: A CPA Business Law/Commercial Law Revision Question and Answers
CPA Business Law/Commercial Law Revision Question and Answers
In numbered paragraphs, distinguish between the following: i) Statutory corporations and limited companies ii) A memorandum of association and articles of association
In numbered paragraphs, distinguish between the following: i) Statutory corporations and limited companies ii) A memorandum of association and articles of association ANSWER Statutory Corporations Limited companies These are incorporated associations created by statute. They owe their existence to an Open …
(i) Explain the meaning of judicial precedent (ii) State two forms of judicial precedents (iii) What are the advantages and disadvantages of judicial precedent?
(i) Explain the meaning of judicial precedent (ii) State two forms of judicial precedents ANSWER (ii) Meaning of judicial precedent This is stare decisis It is a system of administration of justice whereby previous decisions are relied upon in subsequent Open …
Distinguish a criminal wrong from a civil wrong
Distinguish a criminal wrong from a civil wrong ANSWER Criminal wrong Civil wrong This is an act or omission committed or omitted in violation of public law. This is the violation of a persons rights by another. It is a Open …
A statute may have a provision whose meaning is not clear. It is then the duty of the court to interpret it. In relation to the above statement, detail the rules that govern such statutory interpretation
A statute may have a provision whose meaning is not clear. It is then the duty of the court to interpret it. In relation to the above statement, detail the rules that govern such statutory interpretation ANSWER Literal rule This Open …
Citing decided cases, explain the doctrine of “Ultra vires.”
Citing decided cases, explain the doctrine of “Ultra vires.” ANSWER Ultra Vires literally means beyond the powers. This is a rule of capacity of registered companies contained in the provisions of the Companies Act. This rule is to the effect Open …
Distinguish between Partnership and a limited company
Distinguish between Partnership and a limited company ANSWER Partnership Limited Company A partnership is the relation which subsist between persons carrying on a business in common with a view of profit. It may be general or limited. This is a Open …
Explain the various forms of a qualified acceptance of a bill of exchange
Explain the various forms of a qualified acceptance of a bill of exchange ANSWER A qualified acceptance of a bill of exchange varies or modifies the terms of a bill. Such an acceptance may take the form of Conditional: payment Open …
Outline the characteristics of a promissory note
Outline the characteristics of a promissory note ANSWER It is an unconditional promise It must be written and signed by the maker It contains an engagement to pay a sum certain in money The sum is payable on demand or Open …
Outline the ways in which a bill of exchange may be discharged
Outline the ways in which a bill of exchange may be discharged ANSWER A bill of exchange may be discharged in the following ways: Payment in due course Acceptor the holder at maturity or merger Cancellation Material alteration Non-presentation for Open …