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CSEET · Business Laws and Management · Elements of Company Law

Match the situation (List I) with the ground for lifting the veil (List II). List I: (a) Company used to avoid tax by a sham structure; (b) Company carrying on business with fewer members than the statutory minimum for more than the prescribed period; (c) Company used to defeat welfare or labour legislation; (d) Fraudulent trading to cheat creditors. List II: (1) Protection of revenue; (2) Members' personal liability; (3) Fraud or improper conduct; (4) Social welfare protection. Choose the correct matching.

The correct matching is a-1, b-2, c-4, d-3: tax evasion maps to protection of revenue, reduced membership to personal liability of members, defeating labour laws to social welfare protection, and fraudulent trading to fraud or improper conduct.

  1. Aa-1, b-2, c-4, d-3Correct
  2. Ba-2, b-1, c-3, d-4
  3. Ca-3, b-4, c-1, d-2
  4. Da-1, b-3, c-2, d-4

Explanation

Tax evasion relates to protection of revenue (1). Reduced membership below the statutory minimum makes members personally liable (2). Defeating labour laws relates to social welfare (4). Fraudulent trading is fraud or improper conduct (3). Other options mismatch at least two pairs.

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