Director. Finally, in the case of insolvency, stricter

Provisions apply to an LLP.

Weighing the above considerations carefully, I firmly

Believe that it would be a wise decision for your firm to

Form an LLP. As an accountancy firm, you should have no

Difficulty complying with the stricter accounting

Procedures.

Please contact us if you have any questions about the

Matters here discussed, or any other issues.

Yours sincerely

Paul R. Sutherland

Language Focus

Elapsing 3 discretion 4 prerequisite

Interpretation 6 permit

States 3 provisions 4 to 5 make

On behalf of

Answerkey E

Verb Abstract noun Personalnoun

D 3a 4b

In the course of j by way of 3 by way of

In terms of 5 in response to 6 in response to

In terms of 8 by way of

C 3d 4b 5a

An action, an appeal, an amendment, a brief, charges,

A claim, a complaint, a defence, a document,

An injunction, a motion, a suit

Un 3

False 2 True 3 True 4 True

E 2h 3f 4c 5d 6g 7b 8a

C 2e 3b 4a 5d

Suggested answers

Ordinary shares have the potential to give the highest

Financial gains, as they give a pro-rata right to

Dividends, as opposed to preference shares, which

Have a fixed dividend and do not give an increased

return in relation to the business's profits.

In contrast to ordinary shares, preference shares are

Relatively low risk, as the shareholder has the right to a

Dividend ahead of ordinary shareholders.

Ordinary shareholders are the last to be paid if the

Company is wound up, as opposed to preference

Shareholders, who are repaid the par value of their

Shares first.

The purpose of a rights issue is to raise cash from

Shareholders.

If they do not wish to buy the newly issued shares,

They have the option to waive their pre-emption rights

Or to vote to cancel them; the shares may then be

Issued by the company to third parties.

B2c3c4a

The right to receive the residual income based on

Shares owned in the company, and the right to transfer

Ownership of the shares to others.

~

Shareholders can express their disappointment with

the company's performance by either getting rid of their

Shares or in some way exercising their voice by

communicating their concerns to the company's board.

The one-tier board consists of directors, executive as

Well as non-executive, who are appointed by the

Controlling shareholders and who must answer to the

Annual meeting. A two-tier board consists of an

Executive board and a supervisory board. The

Executive board includes the top-level management

Team, whereas the supervisory board is made up of

Outside experts, such as bankers, executives from

Other corporations, along with employee-related

Representatives.

F 2 E, F,(G) 3 C, D 4 B 5 G 6 C 7 A 8 E

Suggested answers

The division of investments among various assets such

That the failure of or loss in one investment will not

Necessarily financially devastate the company, since

Other investments remain viable

Questions which the respondent would prefer not to

Answer. Simply asking them may cause the respondent

Some embarrassment. For example, How can you

justify the award of a 15% pay rise for the CEO when

dividends have fallen by 50%?

The communication or sharing of knowledge between

Parties

Date: 2015-12-11; view: 1005