1.

A floating charge generally covers all the

Group of answer choices

fixed assets

current assets

liabilities

all assets

2.

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.

Group of answer choices

A floating charge with a value of 5,000 registered on 1 January 20X1

A floating charge with a value of 7,000 registered on 1 March 20X1

A fixed charge with a value of 2,000 registered on 1 February 20X1

3.

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

Group of answer choices

Resignation of the finance director

Sale of the assets subject to the charge

The chargee appointing a receiver

4.

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

Group of answer choices

A charge may not be registered late

A charge may be registered late, but only if the permission of the Registrar of Companies is obtaine

A charge may be registered late if it does not prejudice the creditors or shareholders of the company

5.

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

correct?

Group of answer choices

Share capital is transferable but loan capital is not

Loan capital has voting rights attached but share capital does not

Unlike loan capital, share capital does not have to be repaid

Share capital offers the holder more security than loan capital