1.a)In the exercise of their powers, the Act provides that a director must act honestly and use reasonable diligence at all times [section 132(1)]. If something is done honestly, it is considered to be done in good faith. As a director Maria owes a statutory duty to the company not to place herself in a conflict of interest and duty situation. As a result she is required to formally declare he interest to the board. In addittion, the shareholders must approve the sale by passing an ordinary resolution which requires a simple majority to vote in favour. The duty toact honestly includes the duty to act in the best interest of the company and to avoid conflict of interest. The director must not put himself in a position where his duty and interest conflict. There must be total absence of any intention to seek an 12 unfair advantage for herself or persons connected to him or to defraud the company. Apart from the above, a director is also obliged to disclose the interest he has in any transaction involving the company to the board of directors and the shareholders at general meeting. Failure to disclose to the board is an offence under the Companies Act 1965. Failure to disclose to the shareholders at general meeting will enable the company to set aside the contract or to obtain an account of profit from the director.

b)Based on Part VI CMSA 2007, prospectus means a notice, circular, advertisement or document inviting applications or offers to subscribe for or purchase securities or offering any securities for subscription or purchase and unless expressly specified, includes a supplementary prospectus, replacement prospectus, shelf prospectus, short form prospectus, profile statement, supplementary shelf prospectus and abridged prospectus. (Part VI CMSA, Section 226 of the Capital Markets and Services Act 2007). Section 226 CMSA explains the invitation or offer to suscribe or purchase share or securities is prospectus. Based on the case of Edgington v Fitzmaurice (1885), a company issued a ' prospectus' which means a document inviting subscriptions for debentures.

2. An advantage to a business that uses intranet capabilities is that it allows employees to share the

business's information with

A. customers. C. each other.

B. competitors. D. former employees.

3. Ingrid is able to access information from her desktop publishing software, word-processing software, and

spreadsheet software at the same time on her personal computer. This is an example of an operating

system with __________ capabilities.

A. multiprocessing C. multitasking

B. multi-user D. multithreading

4. Melanie is putting a copy of each valuable business record in a building far away from her company. She

is practicing which part of disaster planning?

A. Establish a system for record keeping C. Keep potential lawsuits in mind

B. Store information off site D. Computerize valuable business information

5. Which of the following is a type of business record that a firm can use to track its customers' buying

habits:

A. Forecast C. Marketing budget

B. Invoice D. Annual report

6. A main reason that environmental scanning is important is so that businesses can be aware of

A. foreign markets. C. competitors' internal environments.

B. new products. D. potential threats.

7. Which of the following helps the operations function to control costs and increase productivity:

A. Hiring of employees C. Type of management

B. Use of technology D. Supply of money

8. Which of the following is one way that workplace accidents are costly to employees:

A. Lost income C. Lost sales

B. Lost production D. Lost profits

9. Who is usually responsible for planning a project?

A. Project coordinator C. Project assistant

B. Project scheduler D. Project manager

10. Do businesses such as banks and dry cleaners engage in production?

A. No, the services provided by these businesses are intangible.

B. Yes, these businesses produce a line of tangible products.

C. Yes, the services provided by these businesses are their products.

D. No, these businesses do not engage in production.