CIMA Exam CIMAPRA17-BA4-1 Topic 1 Question 107 Discussion

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

Question #: 107
Topic #: 1

X is in the process of setting up a private company limited by shares X is considering including certain provisions in the articles of association. Which of the following provisions would be enforceable by and against the company?

1 Dividend rights of the members

2. Terms relating to bonuses of directors

3. Payment terms of suppliers.

A1 only

B1 and 2 only

C2 and 3 only

D1,2 and 3

Show Suggested Answer

Suggested Answer: A

by Dominque at Feb 08, 2025, 01:41 AM

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Olive

5 months ago

Payment terms for suppliers? Good luck getting them to agree to that. Unless the company is offering a 'free lollipop with every invoice' deal.

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Lucy

4 months ago

D) 1,2 and 3

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Bernardo

5 months ago

C) 2 and 3 only

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Albina

5 months ago

B) 1 and 2 only

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Lorriane

5 months ago

A) 1 only

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Carman

5 months ago

Payment terms for suppliers? Good luck getting them to agree to that. Unless the company is offering a 'free lollipop with every invoice' deal.

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Madalyn

5 months ago

A) 1 only

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Esteban

6 months ago

Wait, the company can include terms about bonuses for directors? I need to start my own business ASAP!

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Otis

6 months ago

Hmm, I'd go with 1 and 2 only. The company has to keep its directors motivated, but the suppliers might not be too happy about that payment clause.

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Carlee

5 months ago

But we also need to consider the impact on suppliers, they are crucial for our operations.

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Susy

6 months ago

I agree, keeping the directors motivated is important for the company's success.

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Tanja

6 months ago

I'm not sure about that. I think the answer might be D) 1, 2 and 3. Payment terms of suppliers could also be enforceable by and against the company.

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Annette

6 months ago

Bonuses for directors? I bet they'd love that one! Though I'm not sure the suppliers would be too thrilled about the payment terms.

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Lynette

5 months ago

Louisa: So, the correct answer would be B) 1 and 2 only.

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Weldon

6 months ago

User 3: But payment terms of suppliers may not be enforceable by and against the company.

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Louisa

6 months ago

User 2: I agree, including terms relating to bonuses of directors would also be enforceable.

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Germaine

6 months ago

User 1: Dividend rights of the members would definitely be enforceable.

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Caprice

6 months ago

Dividend rights for members? That's a no-brainer. It's in the company's interests to keep shareholders happy.

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Alton

5 months ago

D) 1,2 and 3

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Chanel

5 months ago

C) 2 and 3 only

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Eliz

5 months ago

B) 1 and 2 only

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Lorriane

5 months ago

A) 1 only

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Florinda

6 months ago

I agree with Solange. Dividend rights of the members and terms relating to bonuses of directors should be enforceable by and against the company.

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Solange

6 months ago

I think the answer is B) 1 and 2 only.

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