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- 10 Marks
BCL – Apr 2022 – L1 – Q3b – Types of capital and the financing of companies
Suggest financing methods for AirQuick Ghana office and explain advantages and disadvantages of each method.
Question
b) AirQuick is one of the world’s leading aerospace companies. AirQuick and the Ghana Civil Aviation Authority have conducted a feasibility study in Ghana with the intent of setting up a subsidiary in Ghana. The study which ran for two years has been concluded and a new subsidiary office of AirQuick has just been established in Ghana to serve the West African hub. You have been given a two-year contract in the legal department.
Required:
i) As a business law expert, you have been asked to suggest TWO (2) ways to finance or sustain the activities of the AirQuick Ghana office. (6 marks)
ii) Explain ONE (1) advantage and ONE (1) disadvantage of each financing source identified in i) above. (4 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Company Financing, Debentures, Loan Capital, Public-Private Partnerships, Share Capital
- Level: Level 1
- Topic: Types of capital and the financing of companies
- Series: APR 2022
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- 6 Marks
BCL – Mar 2024 – L1 – Q5b – Types of Capital and the Financing of Companies
Explain the concepts of a fixed charge and a bond in the context of company financing.
Find Related Questions by Tags, levels, etc.
- Tags: Bond, Company Financing, Company Law, Fixed Charge, Secured Loans
- Level: Level 1
- Topic: Types of capital and the financing of companies
- Series: MAR 2024
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- 6 Marks
BCL – Nov 2017 – L1 – Q5c – Types of Capital and the Financing of Companies
Explain the key differences between debenture holders and shareholders.
Find Related Questions by Tags, levels, etc.
- Tags: Company Financing, Debenture Holders, Legal Definitions, Shareholders
- Level: Level 1
- Topic: Types of capital and the financing of companies
- Series: NOV 2017
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- 10 Marks
BCL – Mar 2023 – L1 – Q5a – Types of Capital and the Financing of Companies
Distinguish between fixed and floating charges and explain circumstances for crystallization.
Question
a) A company may raise a loan capital and/or long-term funds by the issue of a debenture or a series of debentures or of debenture stock in order to finance the business without increasing its share capital. Debentures may be secured by a charge or may be unsecured by any charge.
Required:
i) In THREE (3) ways, distinguish between a fixed charge and a floating charge.
(6 marks)
ii) Under what TWO (2) circumstances can a floating charge crystallize into a fixed charge?
(4 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Company Financing, Fixed Charge, Floating Charge
- Level: Level 1
- Topic: Types of capital and the financing of companies
- Series: MAR 2023
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- 10 Marks
BCL – Apr 2022 – L1 – Q3b – Types of capital and the financing of companies
Suggest financing methods for AirQuick Ghana office and explain advantages and disadvantages of each method.
Question
b) AirQuick is one of the world’s leading aerospace companies. AirQuick and the Ghana Civil Aviation Authority have conducted a feasibility study in Ghana with the intent of setting up a subsidiary in Ghana. The study which ran for two years has been concluded and a new subsidiary office of AirQuick has just been established in Ghana to serve the West African hub. You have been given a two-year contract in the legal department.
Required:
i) As a business law expert, you have been asked to suggest TWO (2) ways to finance or sustain the activities of the AirQuick Ghana office. (6 marks)
ii) Explain ONE (1) advantage and ONE (1) disadvantage of each financing source identified in i) above. (4 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Company Financing, Debentures, Loan Capital, Public-Private Partnerships, Share Capital
- Level: Level 1
- Topic: Types of capital and the financing of companies
- Series: APR 2022
Report an error
- 6 Marks
BCL – Mar 2024 – L1 – Q5b – Types of Capital and the Financing of Companies
Explain the concepts of a fixed charge and a bond in the context of company financing.
Find Related Questions by Tags, levels, etc.
- Tags: Bond, Company Financing, Company Law, Fixed Charge, Secured Loans
- Level: Level 1
- Topic: Types of capital and the financing of companies
- Series: MAR 2024
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- 6 Marks
BCL – Nov 2017 – L1 – Q5c – Types of Capital and the Financing of Companies
Explain the key differences between debenture holders and shareholders.
Find Related Questions by Tags, levels, etc.
- Tags: Company Financing, Debenture Holders, Legal Definitions, Shareholders
- Level: Level 1
- Topic: Types of capital and the financing of companies
- Series: NOV 2017
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- 10 Marks
BCL – Mar 2023 – L1 – Q5a – Types of Capital and the Financing of Companies
Distinguish between fixed and floating charges and explain circumstances for crystallization.
Question
a) A company may raise a loan capital and/or long-term funds by the issue of a debenture or a series of debentures or of debenture stock in order to finance the business without increasing its share capital. Debentures may be secured by a charge or may be unsecured by any charge.
Required:
i) In THREE (3) ways, distinguish between a fixed charge and a floating charge.
(6 marks)
ii) Under what TWO (2) circumstances can a floating charge crystallize into a fixed charge?
(4 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Company Financing, Fixed Charge, Floating Charge
- Level: Level 1
- Topic: Types of capital and the financing of companies
- Series: MAR 2023
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