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1. What year did the Personal Property Securities Act (PPSA) come into force in New Zealand?
2. Days Sales Outstanding measures?
The average time it takes you to pay your creditors
The average time it takes your debtors to pay you
The average time it takes you to sell stock
The number of days since your last credit sale
3. Who can enforce a voidable transaction?
A company administrator
All of the above
4. Who can appoint a liquidator?
A court only
A court or shareholders only
A court, shareholders or a company board
Company directors only
5. Who can appoint a receiver?
A court only
Shareholders or a court only
A court or a secured creditor
Any unpaid creditor
6. In the PPSA what is the key attribute of a Purchase Money Security Interest?
It secures cash advances only
It does not require an underlying contractual right to security
It does not need to be registered on the Personal Property Securities Register
It has a 'super-priority' over other security interests
7. How long after service of a statutory demand may a creditor apply to the Court for winding-up?
15 working days
21 working days
8. What is a Limited Partnership?
Consists of a General Partner and a Limited Partner with only the General Partner liable for debts
A Limited Company that is unincorporated
A business partnership restricted to a maximum 4 partners
An unincorporated business that can have no more than 5 shareholders
9. How long prior to a liquidation can a voidable transaction claim be made?
10. What is the minimum age for a company director?
11. Which of the following statements about bankruptcy is FALSE?
The 'No Asset Procedure' is an option for people not previously bankrupt and with less than $47,000 in debts
You can be bankrupted for $1000
In bankruptcy parking fines are wiped
You can take out a loan of $750 as a bankrupt
12. Which of the following is NOT defined as a 'security interest' under the PPSA?
Lease for less than 1 year
Bailment for more than 1 year
13. Which of the following will be paid out first in a liquidation?
Employee holiday pay
Liquidation committee expenses
14. For a creditors' compromise resolution to be adopted what voting levels from creditors are required?
More than 50% by number and 75% by debt value
More than 75% by number and 75% by debt value
More than 50% by number and 50% by debt value
More than 75% by number and 50% by debt value
15. Which of the following statements about a Partnership is TRUE?
All partners are jointly and severally liable but only if they have all signed the credit agreement
A partnership agreement is a legal requirement
A partnership can only have a maximum of 10 partners
A partnership is dissolved on the bankruptcy of any partner
16. Under the PPSA the term 'perfection' describes:
A security agreement that has been agreed and signed by both parties
A security interest that has attached and a financing statement registered on the PPSR
A security interest over Inventory only
A PPSR registration that has been approved by the Registrar
17. The term 'Working Capital' can be defined as:
The capital amount invested in long term securities for a period of more than 1 year
The operating liquidity of a business, measured as current assets less current liabilities
Total earnings before interest and tax, calculated as gross profit less operating expenses
The amount of capital invested in Fixed Assets of the business and used in producing profit
18. Which of the following statements about a Deed is TRUE?
A deed doesn't need consideration in order to be enforceable
A deed doesn't need to be in writing
A deed doesn't need to be witnessed
A deed isn't enforceable against one party unless signed by the other party
19. Who may inspect a company's share register?
Directors and shareholders only
Directors, shareholders and creditors only
20. Which of the following is TRUE about the Disputes Tribunal:
It can only deal with disputes that are over $15,000
It can't deal with debt collection matters where there is no dispute about the debt
It can't deal with insurance disputes
The referee can't make an order for compensation for loss or damage
You're new to this aren't you?
Not too bad - but you may need some revision
Pretty good - perhaps some details you weren't sure about?
Well done - you're obviously an experienced credit person
Wow - only 1 wrong! Great work!
All correct!! A real Pro at work....
PLAY AGAIN !