NZ Corporate Entities: Law Made Easy!

Question 1

What is the most common type of company in New Zealand?

Accepted Answer

Limited Liability Company (Ltd)

Answer

Partnership

Answer

Sole Trader

Answer

Trust

Question 2

Who owns a company limited by shares?

Accepted Answer

The shareholders

Answer

The directors

Answer

The government

Answer

The employees

Question 3

What does 'limited liability' mean for shareholders?

Accepted Answer

They are only responsible for company debts up to the amount they invested.

Answer

They are responsible for all company debts.

Answer

They are not responsible for any company debts.

Answer

They are only responsible if they are also directors.

Question 4

Which document sets out the rules for how a company is run?

Accepted Answer

The company's constitution

Answer

A shareholder agreement

Answer

The Companies Act 1993

Answer

The director's manual

Question 5

Who is responsible for managing a company on a day-to-day basis?

Accepted Answer

The directors

Answer

The shareholders

Answer

The auditors

Answer

The liquidators

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