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Memorandum of Associations - SS2 Accounting Past Questions and Answers - page 1

1

What is the purpose of the Memorandum of Association?

A

To outline the fundamental principles and purpose of a company

 

B

To provide an independent examination of a company's financial records

C

To ensure compliance with relevant laws and regulations

D

To outline the duties of the company's directors

correct option: a
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2

Which clause in the Memorandum of Association specifies the registered office of the company?

A

Name Clause

 

B

Liability Clause

C

Objective Clause

D

Registered Office Clause

correct option: d
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3

Which clause in the Memorandum of Association outlines the main objectives and purpose of the company?

A

Liability Clause

B

Capital Clause

C

Association Clause

D

Objective Clause

correct option: d
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4

What is the capital clause in the Memorandum of Association?

A

It outlines the amount of capital that the company is authorized to raise and the types of shares that it can issue.

B

It specifies the registered office of the company.

C

It outlines the duties of the company's directors.

D

It states that the subscribers to the MOA wish to form a company.

correct option: a
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5

Who approves any amendments to the Memorandum of Association?

A

The company's directors

B

The Registrar of Companies

C

The company's members

D

The government

correct option: c
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6

What is the liability clause in the Memorandum of Association?

The liability clause specifies the extent of the liability of the members of the company.

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7

Why is the Memorandum of Association a crucial document?

The Memorandum of Association is a crucial document as it establishes the legal existence of the company and defines the scope of its activities. It also sets out the powers and limitations of the company's directors and members.

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