Page 224 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Chapter 9

Solution

The answer is (B), (D) and (E).

The managers do own enough of the equity to enable them to vote and carry
decisions in a general meeting; they have 10 million votes and the venture
capitalists have 3 million votes (A).

If HH Co were to go into liquidation, the secured bank borrowing would take
priority (C).

216