Which of the Following Statements Is Incorrect

question 33

Multiple Choice

Which of the following statements is incorrect?

• A) If the company is limited by shares, members do not have to contribute more than the amount unpaid on the shares for which each is liable as a past or present member.
• B) Past members must contribute money for company debts which have been incurred after they cease to be members.
• C) Most liquidations in Australia do not have sufficient funds to pay creditors.
• D) In the absence of any guidance in the company's constitution, calls in advance with related interest will be repaid before any payments are made to shareholders.

---

Definitions:

Sharpe Measure

A method used to evaluate the risk-adjusted return of an investment, comparing the excess return (over a risk-free rate) to the standard deviation of returns.

S&P 500 Index

A stock market index in the United States composed of the market values of 500 major companies listed on either the New York Stock Exchange or NASDAQ.

Time-Weighted Return

A method of calculating investment returns that eliminates the impact of cash flows into and out of the portfolio, focusing solely on the performance of the investments themselves.

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, divided by the volatility of those returns.