- 1 Marks
Question
The document which discloses the conditions that govern a company’s relationship with third parties is called
A. Articles of Association
B. Loan notes
C. Register of Members
D. Memorandum of Association
E. Memorandum of Understanding
Answer
D
Explanation:
The correct answer is D because the Memorandum of Association outlines the scope and limitations of a company’s operations, including its dealings with third parties. It is a fundamental document that must be filed during a company’s incorporation, serving as a charter that specifies how the company will interact with external entities. Other options, such as the Articles of Association, focus more on the internal regulations and operations of the company rather than third-party relations.
- Tags: Articles of Association, Company Law, Corporate Documentation, Memorandum
- Level: Level 1
- Topic: Regulatory Environment of Accounting
- Series: MAY 2014
- Uploader: Theophilus