Extra Exercise: MCQ4 What is the role of ASIC in investigating and prosecuting offences by a company? Indicate the appropriate response. a. ASIC is permitted to make recommendations as to criminal prosecutions, but only the police or an appropriate statutory authority is permitted to make a criminal investigation of the company b. ASIC is responsible for administering the corporations legislation, which includes investigating offences as they relate to officers within a company. Serious breaches will be prosecuted by the Director of Public Prosecutions (DPP) C. ASIC has the role of investigating criminal activity within companies, particularly in relation to the actions of directors, noting that they do not conduct any type of prosecution of criminal offences d. The Corporations Act does not contain criminal offences, only civil breaches; hence ASIC is not permitted to conduct criminal investigations Activity 2: Exercise-MCQ 1 What legally distinguishes a business as a sole trader? Which of the following is correct? a. A sole trader is a one-person company, which has only one shareholder, who is also the director of the company b. A sole trader enterprise refers to a group of individuals who run a business, with separate sole interests in that business c. A sole trader is any business that is not incorporated d. A sole trader is a business owned and run by an individual where there is no separate entity between that individual and the business Activity 2: Exercise-MCQ2 What is the relationship between partners? Which of the following is correct? a. The partners are in a contractual relationship, so the duties existing between them are specified within that contractual agreement b. The fiduciary duties expected between partners is found in legislation which now replaces all previous common law and equitable duties c. A partnership relationship is that of a fiduciary, which means the partners must act with honesty, loyalty and put the interests of the partnership ahead of their personal interests d. The relationshin of nartners is determined by specific state legislation Activity 2: Exercise-MCQ 3 What is the liability of joint venturers for each a. Joint venturers will determine their liability according to their contractual agreement, the usual arrangement being, that participants are not liable for cach other's actions, only their own b. Joint ventures are similar to partnerships. Each party acts as an agent for each of the other parties within the joint venture, which means they are jointly liable for each other's actions c. Joint ventures are not defined in law, therefore it is unknown whether each party may be liable for each other's business transactions d. Joint venturers will be liable for another party to the venture where the Lam Vt ch Activity 2: Exercise-MCQ 4 What is the general liability attached to a trust? a. The beneficiaries will be liable for any problems that occur within the trust, particularly if property is lost b. The settlor must ensure that the beneficiaries will ultimately be paid from the trust c. The trustee usually has no liability under the trust according to the trust deed created between the parties d. A trustee has an obligation to act as a fiduciary duty to preserve the property of the trust, to act carefully and honestly so that the interests of beneficiaries are upheld