F4 (M.C)

Hi, lecture,

I have some confused in the following Multiple Choice, could you please explain to me :

1. Which one of the following is correct?
a. A public company cannot revert to a private company
b. A private company cannot become a public company
c. A public company cannot be limited by guarantee
d. All companies are either limited by shares or limited by guarantee
Model Answer : D

I choose the answer is C as I read some book said that a public company cannot be limited by guarantee…… (pls. advise)

2. Last month, Maria received business information relating to a company. Subsequent to that, she purchased the shares of the company.
Maria may potentially have committed insider dealing when which Two of the following are true?
1. The information is about a decision by the company to wind up the company
2. Maria earned profit when she subsequently sold the shares
3. The company is a listing company.
4. The information was from an office assistant of the company
a. (1) and (2)
b. (2) and (3)
c. (3) and (4)
d. (1) and (4)
Model Answer is C
I choose B ……… I know the connect person is an employee of the company, however the employee is just an office assistance and it is unreasonable he could get some relevant information…………. Is it no need to consider the position of the employee in the company, we only consider he/she is an employee of the company and he/she relevant info was disclosure from him/her which is regards as “insider dealing’?

3. In relation to a voidable contract, which of the following is true ?
a. It is an illegal contract
b. It is an unenforceable contract
c. It is a true contact until it is declared void by the court
d. It is a contract which has no legal effect
Model Answer is B
I know the A,C,D are incorrect, but I think B is also incorrect as I read book that the voidable contract is legal enforceable until the innocent party is terminated……
Pls. advise.

4.In relation to contract law, which of the following about the postal rule are true ?
1. A contract is formed when the letter of acceptance is received by the offeror
2. A contract is formed when the letter of acceptance without a stamp is posted
3. The rule applies to the communication of both the offer and the acceptance of the offer
4. The postal rule dispenses with the need for the communication of the acceptance
a. (1) and (2)
b. (2) and (3)
c. (3) and (4)
d. (1) and (4)

Model Answer: D
I chose C as (1) is not correct as the post rule takes effect is the letter of acceptance is posted (not received)….(2) is incorrect as the letter of acceptance must have stamp.
Pls. advise.

5. The post rule does not apply to such instantaneous modes of communication as telephones, fax, telex or email…. It is correct ?