CIMA Fundamentals of Ethics, Corporate Governance and Business Law BA4 Question # 105 Topic 11 Discussion

CIMA Fundamentals of Ethics, Corporate Governance and Business Law BA4 Question # 105 Topic 11 Discussion

BA4 Exam Topic 11 Question 105 Discussion:
Question #: 105
Topic #: 11

A is about to register a new company limited by shares, “A Ltd”, in order to carry on a retail business. A has ordered a quantity of goods from a supplier “for and on behalf of A Ltd”. Which of the following is correct?


A.

A Ltd is liable to pay for the order as soon as it is registered.


B.

A is personally liable for the order.


C.

The contract is void.


D.

A Ltd can ratify the contract following registration.


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