The Terms 'Controller' and 'Receiver and Manager' Are Both Used

question 6

Multiple Choice

The terms 'controller' and 'receiver and manager' are both used in the Corporations Act:

• A)but only receiver and manger is relevant to external administration
• B)controllership is narrower concept than receiver and manger
• C)controllership is wider concept than receiver and manger
• D)they have the same meaning

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Definitions:

Stock A

A type of financial instrument representing ownership in a corporation and a claim on part of the corporation's assets and earnings.

Stock B

Refers to a classification of stocks that are considered as a less volatile investment than Stock A; often paying dividends.

Security Market Line

A line graph that represents the relationship between risk (beta) and the expected return of the market and various securities.