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Six Pencils

Quiz 1 - Key Answers
Legal Agreements: External/3rd Parties

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Question 1

A fixed-term employment contract is a contract:

  • A. Concluded for an indefinite period.

  • B. Concluded for a limited period of time.

  • C. Used only for part-time employees.

  • D. Concluded only for one time.

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Question 2

What is the key difference between a fixed-term contract and an indefinite contract?

  • A. Fixed-term contracts can only be terminated by the employee.

  • B. Fixed-term contracts have a specific start and end date.

  • C. Indefinite contracts require a renewal each year.

  • D. Indefinite contracts are for part-time employees only.

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Question 3

In a Nominee Agreement, who holds or manages shares and performs actions on behalf of another person or legal entity?

  • A. Beneficial Owner.

  • B. Agent.

  • C. Nominee.

  • D. Principal/Beneficiary.

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Question 4

Which of the following statements is not true regarding a Nominee Agreement?

  • A. A Nominee Agreement gives decision-making authority to the Nominee.

  • B. A Nominee Agreement allows the Nominee to act on behalf of the Beneficial Owner.

  • C. A Nominee Agreement transfers legal ownership, without granting decision-making authority.

  • D. A Nominee may receive remuneration for its services or agree to conduct the Beneficial Owner's business affairs free of charge.

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Question 5

Which statement best describes a key difference between a Nominee Agreement and a Trustee Agreement?

  • A. A Trustee Agreement authorises the Trustee to freely manage assets on behalf of the ultimate Beneficiary, while a Nominee Agreement authorises the Nominee to hold assets and manage business affairs on behalf of the ultimate Beneficiary and always as per the Beneficiary’s instructions.

  • B. A Trustee Agreement only applies to shares, while a Nominee Agreement applies to both shares and assets.

  • C. A Trustee Agreement transfers assets to a Beneficiary for management, whereas a Nominee Agreement is limited to corporate legal and/or financial matters.

  • D. A Trustee Agreement and a Nominee Agreement both allow third parties to act on behalf of the Beneficiary.

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Question 6

Which type of agreement is primarily used to facilitate the transfer of shares from one shareholder to another party?

  • A. Trustee Agreement.

  • B. Nominee Agreement.

  • C. Shares Transfer Agreement.

  • D. Share Purchase Agreement.

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Question 7

Which of the following best describes the primary difference between a Sales Commission Scheme Agreement and an Engagement Bonus Fee Agreement?

  • A. A Sales Commission Scheme Agreement compensates employees for meeting the Company’s targets, while an Engagement Bonus Fee Agreement is exclusively for sales representatives’ commissions.

  • B. An Engagement Bonus Fee Agreement rewards employees for hitting business targets to encourage retention, while a Sales Commission Scheme Agreement primarily details compensation based on sales targets.

  • C. A Sales Commission Scheme Agreement includes both bonuses and sales-based rewards, while an Engagement Bonus Fee Agreement is focused only on sales targets.

  • D. Both agreements function the same way, there is no major difference, apart from the fact that they apply to different departments within the company.

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Question 8

Which type of agreement is primarily used to establish confidential relationships between parties to prevent the disclosure of proprietary information to third parties?

  • A. Employment Contract.

  • B. Non-Disclosure Agreement (NDA)

  • C. Confidentiality Clause in an Employment Contract.

  • D. Proprietary Information Agreement protecting trade secrets.

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Question 9

Which statement best describes the key difference between an Employment Contract and a Non-Disclosure Agreement (NDA)?

  • A. An Employment Contract only applies to maintaining confidentiality, whereas an NDA covers all aspects of employment, including compensation and duties.

  • B. An NDA is specifically focused on preventing the disclosure of confidential information, while an Employment Contract may include confidentiality clauses, but mainly covers other employment terms like job duties, responsibilities, remuneration (salary), and other employment conditions.

  • C. An NDA and Employment Contract are identical in purpose, as both ensure confidentiality of company information.

  • D. An Employment Contract and NDA are used interchangeably, as both require employees to protect proprietary information.

Quiz 2 - Key Answers
Legal Agreements: External/3rd Parties

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