| 1. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a voluntary association of persons formed to carry on some business for profit or to promote art, science, education or some charitable purpose. |
| A. | Incorporation |
| B. | Private company |
| C. | Company |
| D. | Public company |
| Answer» C. Company | |
| 2. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a legal person which capable of perpetual succession and common seal |
| A. | Company |
| B. | Firm |
| C. | Voluntary Association |
| D. | Partnership. |
| Answer» A. Company | |
| 3. |
See ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies Act, 1956 states that a company means “ a company formed and registered under this Act, or an existing company” |
| A. | 3(2)(ii) |
| B. | 3(1)(ii) |
| C. | 3(3)(i) |
| D. | 3(1)(i) |
| Answer» D. 3(1)(i) | |
| 4. |
A company is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of a person who have come together for a common object which generally is to earn profit |
| A. | Artificial person |
| B. | Voluntary Association |
| C. | Incorporate Association |
| D. | All of these. |
| Answer» D. All of these. | |
| 5. |
Anything done under an agreement between the company and third party requires recognition of the company in the form of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Contract |
| B. | Agreement |
| C. | Partnership |
| D. | Official seal |
| Answer» D. Official seal | |
| 6. |
A company is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ person |
| A. | Distinct person |
| B. | Group |
| C. | Legal |
| D. | Association |
| Answer» C. Legal | |
| 7. |
A company is the creation of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Common seal |
| B. | Law |
| C. | Share capital |
| D. | Members |
| Answer» B. Law | |
| 8. |
Minimum ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ and maximum ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ constitute a private limited company |
| A. | 2 of 10 |
| B. | 7 of unlimited |
| C. | 2 of 15 |
| D. | 2 of 50 |
| Answer» D. 2 of 50 | |
| 9. |
Mean any premises including precincts thereof |
| A. | Industry |
| B. | Factory |
| C. | Company |
| D. | Workmen |
| Answer» B. Factory | |
| 10. |
Minimum ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ persons to constitute a public limited company. |
| A. | 7 |
| B. | 10 |
| C. | 2 |
| D. | 5 |
| Answer» A. 7 | |
| 11. |
Accounts of a company must be audited by an ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Chartered Accountant |
| B. | Auditor |
| C. | Board of Directors |
| D. | All of these. |
| Answer» B. Auditor | |
| 12. |
The winding up of the company can only be done by the process of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Dissolution of partnership |
| B. | General meeting |
| C. | Law |
| D. | Management |
| Answer» C. Law | |
| 13. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company are those which are incorporated by a Royal Charter. |
| A. | Chartered |
| B. | Registered |
| C. | Statutory |
| D. | None of these. |
| Answer» A. Chartered | |
| 14. |
Statutory companies are those incorporated under a special act passed by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Companies Act |
| B. | Parliament |
| C. | Special resolution |
| D. | Law |
| Answer» B. Parliament | |
| 15. |
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Company may be companies limited by shares companies limited guarantee, unlimited companies. |
| A. | Number of members |
| B. | Liability of members |
| C. | Registered |
| D. | Incorporation |
| Answer» B. Liability of members | |
| 16. |
Companies limited by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are not formed for the purpose of profit but for the promotion of art, science, culture, charity, sports, commerce etc. |
| A. | Members |
| B. | Shares |
| C. | Liability |
| D. | Guarantee |
| Answer» D. Guarantee | |
| 17. |
Private company means a company which has a minimum paid up capital of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Rs.2,00,000 |
| B. | Rs.5,00,000 |
| C. | Rs.1,00,000 |
| D. | Rs.1,50,000 |
| Answer» C. Rs.1,00,000 | |
| 18. |
A public company has been defined in sec.‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | 3(1)(iv) |
| B. | 3(1)(i) |
| C. | 3(1)(iii) |
| D. | 3(1)(ii) |
| Answer» A. 3(1)(iv) | |
| 19. |
Public company means a company which has a minimum paid up capital of Rs.‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | 2,00,000 |
| B. | 3,00,000 |
| C. | 5,00,000 |
| D. | 1,00,000 |
| Answer» C. 5,00,000 | |
| 20. |
Shares can be freely transferable in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Public company |
| B. | Private company |
| C. | Registered company |
| D. | Government company |
| Answer» A. Public company | |
| 21. |
The common seal of the company is the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Official signature of the company |
| B. | Rights of the company |
| C. | General view of the company |
| D. | None of the above. |
| Answer» A. Official signature of the company | |
| 22. |
During which of the following circumstances can the veil be lifted by the court? |
| A. | Where the Co acts as an agent |
| B. | Where a fund is noticed |
| C. | When the company tries to avoid certain legal obligation |
| D. | All of the above. |
| Answer» D. All of the above. | |
| 23. |
The memorandum of Association is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the company. |
| A. | Certificate |
| B. | Schedule |
| C. | Document |
| D. | None of the above |
| Answer» C. Document | |
| 24. |
If the Articles of a company conflict with the memorandum. |
| A. | The articles shall prevail |
| B. | The memorandum shall prevail |
| C. | The directors will resolve the conflict |
| D. | The court will resolve the conflict. |
| Answer» B. The memorandum shall prevail | |
| 25. |
The shorter versions of a prospectus is also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ |
| A. | Deemed prospectus |
| B. | Incomplete prospectus |
| C. | Abridged prospectus |
| D. | Red Herring Prospectus |
| Answer» C. Abridged prospectus | |