1. Which of the following statements in relation to charges is NOT correct?

(a) Generally, if the charges have been correctly registered, fixed charges rank higher than existing floating charges.

(b) As opposed to a charge that is fixed to a particular asset, the borrower may apply a floating charge to a group of existing and future assets.

(c) For assets subject to floating charges, the borrower is allowed to trade in the assets after crystallisation has occurred.

(d) The benefit of a fixed charge for the lender is the control over the asset.

2. Which of the following is NOT an alternative which is available when a company faces insolvency?

(a) Scheme of arrangement

(b) Judicial management

(c) Receivership

(d) Bankruptcy

3. Which of the following statements in relation to the appointment of the company auditor is correct?

(a) The company auditor is initially appointed by the board of directors within three months from the date of the companys incorporation.

(b) After the initial appointment, the company auditor shall continue to hold office indefinitely until the shareholders at the next annual general meeting decides to approve the appointment of another new auditor.

(c) The company auditor is initially appointed by the shareholders of the company at the time of incorporation.

(d) After the initial appointment, the re-appointment of the company auditor or appointment of a new auditor shall be approved by the board of directors at the next annual general meeting of the company.