CIMA Exam CIMAPRA17-BA4-1 Topic 4 Question 88 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam

Question #: 88
Topic #: 4

[All CIMAPRA17-BA4-1 Questions]

Which of the following statements are correct regarding companies'?

1. Both public and private companies must have a minimum amount of share capital before they can commence trading.

2. The shareholders of both public and private companies cannot interfere in the management of the company.

3. The minimum number of directors for both public and private companies is two

A1 only

B2 and 3 only

C1 and 2 only

D2 only

Show Suggested Answer

Suggested Answer: A

by Lashonda at May 21, 2024, 05:53 AM

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Allene

5 months ago

I'm going with C. Statements 1 and 2 sound right, but 3 is definitely not correct for both public and private companies.

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Rozella

5 months ago

Wait, are we sure there aren't any trick questions here? This seems too easy. *rubs chin thoughtfully*

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Catherin

5 months ago

Haha, the minimum number of directors being two? That's a pretty low bar, even for a small business. I'll go with B.

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Gabriele

5 months ago

I agree, but it's good to know the correct statements about companies.

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Dean

5 months ago

Yeah, having only two directors does seem pretty minimal.

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Helga

5 months ago

Maryrose: Definitely, I think option B is the correct choice.

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Bernadine

5 months ago

Yeah, it definitely makes sense for smaller businesses to have a lower minimum requirement for directors.

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Maryrose

5 months ago

Agreed, it's not too burdensome for a company.

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Tamie

5 months ago

I agree, having only two directors seems like a manageable number for a company.

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Matthew

5 months ago

Yeah, having only two directors seems pretty manageable.

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Micaela

6 months ago

No way, statement 2 is definitely wrong. Shareholders definitely have a say in the management of the company, public or private.

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Junita

6 months ago

I think statement 1 is correct. Public companies definitely need to have a minimum share capital before starting operations.

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Afton

5 months ago

D) 2 only

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Leonie

5 months ago

No, shareholders can interfere in the management of the company.

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Ciara

5 months ago

C) 1 and 2 only

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Izetta

5 months ago

That's correct, the minimum number of directors for both public and private companies is two.

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Hoa

5 months ago

A) 1 only

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Louis

5 months ago

B) 2 and 3 only

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Justine

5 months ago

I agree, public companies must have a minimum share capital.

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Johanna

5 months ago

A) 1 only

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Jina

6 months ago

A) 1 only

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