Extra Exercise: MCQ1 Is the concept of a company the same as limited liability? Choose the most appropriate response. a. Every entity created under legislation has automatic separate legal entity from its members and limited liability for its managers; this has always been the case b. Yes, every company has limited liability. The concept of a separate legal entity means that a company has limited liability for its debts and obligations c. The ability to create a separate legal entity known as a company is a result of legislation; not every company has limited liability. The concept of limited liability started being introduced in England in 1855 d. Limited liability for the owners of a company was introduced at the same time legislation was created to enable the registration of companies Extra Exercise: MCQ2 Which bodies regulate Australian companies? Which is the most appropriate answer? a. The only body that regulates companies within Australia is ASIC b. Australian companies are not subject to the ACCC since consumer law applies only to retailers c. All regulatory bodies apply to companies in Australia, except APRA which only applies to financial institutions d. There are various bodies regulating Australian companies, but the major regulators are ASIC, the ATO and APRA Extra Exercise: MCQ 3 What is the role of ASIC? Which of the following is correct? a. ASIC regulates both companies and the securities industry in Australia. It also monitors and regulates parts of the financial sector b. ASIC does not intervene in the financial sector. Only APRA has the ability to regulate the financial