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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA BT – FIA FBT › ACCA BT Model questions
1.Which of the following is not an advantage of forming a limited liability company?
A.There will be increased likelihood of profits
B.The risk to investors is reduced
C.Investors need to get involved in the detail of operations
D.There are additional sources of funding
2.Which of the following contributes to a personal development plan(PDP) ?
(1) The individual employee
(2) The employee’s manager
A.1 only
B. Both
C. 2 only
Please tell the right answer in 1st as I am confused betn C and B ig investors needing to operations is wrong and in 2 both are right if I am right or wrong please tell ?
1 A. The business will be good or bad irrespective of its legal form.
B = true for limited liability companies: shareholders’ liability is limited
C = true. Often shareholders take little to do with running the company and this is carried out by the directors.
D = true. For example, loans secured on the company’s assets; rights issues preference shares.
Q2 B Both must be involved. The employee knows what he/she wants/needs; the managers knows what the company wants/needs.