Which of the Following Is Not a General Ground Under

question 28

Multiple Choice

Which of the following is not a general ground under s. 461 of the Corporations Act on which the court can order a winding up?

• A) The company has no members.
• B) The company has not commenced business within three months of its incorporation.
• C) The court is of the opinion that it is just and equitable that the company be wound up.
• D) The company has by special resolution resolved that it be wound up by the court.

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Definitions:

Fixed Manufacturing Overhead

The set amount of costs for production that do not vary with the level of output, such as salaries of supervisors and rent of the factory building.

Budget Variance

The financial difference between the budgeted amount and the actual amount spent or received.

Standard Cost System

An accounting method that assigns preset costs to products and services, which are then compared to actual costs incurred.

Predetermined Overhead Rate

A calculated rate designed to assign estimated indirect manufacturing costs to products or services, based on a planned activity level.