Multiple Choice Questions. 1. Which one of following cases best explains the concept of separate legal entity? a) Salomon v Salomon b) Gohlke Schneider v Westies minerals (pty) ltd c) Ex parte Barron d) Idc v Cooley.

2. Piercing the corporate veil does not mean? a) Lifting the veil b) Identifying negligent directors c) Seeing inside company, to know who made the mistake d) Making a complain about the company's mistakes

3. Which one of the following is not a feature of a close company? a) It acquires legal personality upon incorporation. b) It enjoys perpetual succession. c) Should the membership of close company change, an amended founding statement must be lodged for registration. d) Both natural and juristic persons can be members of a close company.

4. Which of the following is not true about separate legal personality? a) The profits of the company belong to it and not the members b) The assets of the company exclusively belong to the company c) No one is qualified to act on behalf of the company d) The estate of the company is assessed together with that of its members.

5. In relation to Botswana Company law, which one of the following is the odd one out? a) Public companies (ltd) b) Private companies(pty) ltd c) Personal liability companies(inc) d) Close Companies (CC)

6. In terms Companies Act of Botswana, the Abbreviation, "SOC" stands for: a) Suitable offer complete b) State owned company c) State ownership and control d) State on control

7. Which of the following is not true about companies limited by guarantee? a) It's purpose is not to make profit for its shareholders b) If the company is liquidated, the assets must be transferred to a company with similar purpose. c) It promotes social activities d) It's shares are freely transferrable

8. In terms of companies Act of 2003, which one of the following is not true about the future of close Companies? a) Provision is made for close Companies to convert into companies, b) Member's interest does not include sharing of profits c) Member's investment is reflected as a percentage of member's interest. d) Upon registration of companies Act of 2003, it will no longer be possible to register new close Companies.

9. Which of the following documents is not relevant for the formation of a company? a) Notice of incorporation b) Solemn declaration. c) Registration certificate d) Financial report

10. Which of the following is not correct about company constitution? a) It is only formal constitutive document b) It forms a contract between director and the company c) It limits the powers of directors d) It is written by the parliament of Botswana