Which ONE of the following statements is CORRECT?Question 9Answera.A mortgage is not a form of security for a debt.b.Public companies are automatically listed on the ASX (Australian Securities Exchange) when they are registered with ASIC.c.The case of Lee v Lee's Air Farming upheld the ruling in the case of Salomon v Salomon & Co that companies are separate legal entities.d.Large proprietary limited companies can list on the ASX (Australian Securities Exchange) in some rare circumstances.
Question
Which ONE of the following statements is CORRECT?Question 9Answera.A mortgage is not a form of security for a debt.b.Public companies are automatically listed on the ASX (Australian Securities Exchange) when they are registered with ASIC.c.The case of Lee v Lee's Air Farming upheld the ruling in the case of Salomon v Salomon & Co that companies are separate legal entities.d.Large proprietary limited companies can list on the ASX (Australian Securities Exchange) in some rare circumstances.
Solution
The correct statement is c. The case of Lee v Lee's Air Farming upheld the ruling in the case of Salomon v Salomon & Co that companies are separate legal entities.
Explanation:
a. This statement is incorrect. A mortgage is indeed a form of security for a debt. It is a legal agreement by which a bank or other creditor lends money at interest in exchange for taking the title of the debtor's property.
b. This statement is incorrect. Public companies are not automatically listed on the ASX when they are registered with ASIC. They must meet certain requirements and apply to be listed on the ASX.
d. This statement is incorrect. Large proprietary limited companies cannot list on the ASX. Only public companies can list on the ASX.
Similar Questions
True or False? “A bank is required to identify and verify the beneficial owners of a public company listed on the Australian Stock Exchange.”
Which of the following is NOT one of the financial components of a mortgage payment?Select one:a. Termb. Face Valuec. Amortizationd. Title
19.Which of the following is NOT under the regulatory purview of SEBI? A. Stock exchanges B. Credit rating agencies C. Agricultural markets D. Venture capital funds
Which of the following is not a form of special financing?Select one:a.Merchant bankingb.Mutual Fundingc.Online Bankngd.Factoring
Please choose the INCORRECT answer. A proprietary limited company:Question 2Answera.Can be either a Small or Large proprietary company.b.Does not need to be registered with ASIC.c.Must comply with the requirements of the ATO (Australian Taxation Office) under Australian law.d.Can operate a cafe or a clothing store.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.