1.

Companies limited by shares have three particularly significant legal characteristics or attributes that enable them to function as legal persons (that is, juristic entities capable of doing acts of legal effect) in their own right. Whichoneof the following is not one of these attributes?

Separate legal personality.

Legal capacity

Members of the company enjoy limited liability.

A company can be held liable for criminal and civil wrongs.

2.

Which of the following are characteristics of equity finance?

1. There is no expectation or requirement that the company will pay a distribution (in the form of dividends) the payment of dividends is within the discretion of directors.
2. Repayment of principal on a winding up only after all other legitimate claims have been satisfied.
3. A share in any surplus assets in a winding up.
4. An expectation that capital will be returned prior to winding up.

1. A and B only.

A, B, C and D.

A, B and C only.

A, B and D only