190+ Corporate Laws Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Union Public Service Commission (UPSC) , Indian Administrative Service (IAS) , Common Law Admission Test (CLAT) .

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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

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

13.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company are those which are incorporated by a Royal Charter.
A.	Chartered
B.	Registered
C.	Statutory
D.	None of these.
Answer» A. Chartered

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

190+ Corporate Laws Solved MCQs

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a voluntary association of persons formed to carry on some business for profit or to promote art, science, education or some charitable purpose.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a legal person which capable of perpetual succession and common seal

See ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies Act, 1956 states that a company means “ a company formed and registered under this Act, or an existing company”

A company is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of a person who have come together for a common object which generally is to earn profit

Anything done under an agreement between the company and third party requires recognition of the company in the form of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

A company is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ person

A company is the creation of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Minimum ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ and maximum ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ constitute a private limited company

Mean any premises including precincts thereof

Minimum ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ persons to constitute a public limited company.

Accounts of a company must be audited by an ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

The winding up of the company can only be done by the process of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company are those which are incorporated by a Royal Charter.

Statutory companies are those incorporated under a special act passed by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Company may be companies limited by shares companies limited guarantee, unlimited companies.

Companies limited by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are not formed for the purpose of profit but for the promotion of art, science, culture, charity, sports, commerce etc.

Private company means a company which has a minimum paid up capital of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

A public company has been defined in sec.‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Public company means a company which has a minimum paid up capital of Rs.‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Shares can be freely transferable in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

The common seal of the company is the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

During which of the following circumstances can the veil be lifted by the court?

The memorandum of Association is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the company.

If the Articles of a company conflict with the memorandum.

The shorter versions of a prospectus is also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

On a share of Rs.200 of a company a shares holder has already paid Rs.150 . His L9iability is now limited to:‐

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ refers to a voluntary association of individuals formed for the purpose of obtaining a particular social or economical goal.

A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a document but invites the public to subscribe for share and debentures

The ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ issues the certificate of incorporation

Corporate veil ensures ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the company

The articles of Association and the memorandum of Association are drafted by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Doctrine of Ultra virus has reference to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ clause

Which doctrine protects the out of the outsiders from the company?

Which Doctrine seeks to promote the company from the outsiders?

Sec. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies Act deals with the meaning and provisions related to the shelf prospectus.

Sec. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies act states that, a public company making an issue of securities shall circulate information memorandum to the public before filling of a prospectus.

The person of group who being a company into existence are called‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

The board of directors delegate the power to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are subordinate to and controlled by the memorandum.

A copy special resolution has to be filed with the register within ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ days

A printed copy articles as altered shall be filed by the company with the register within ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐ of order of approval from central

Sec. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companied Act defines foreign company

Sec.25 related to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ companies

Holding company is defined in section ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies Act.

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the first stage in the formation of a company

The idea of carrying on a business is conceived by a person by a group of persons called ‐‐‐‐‐‐‐‐‐‐

A company is said to be incorporated when it is registered with registrar of the ‐‐‐‐‐‐‐‐‐‐‐‐ company

When one company controls the management of another company, the format is called a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐ company

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is issued by any financial constitution or bank for on e or more of issues of securities or class of securities specified in the prospectus.

The other name of indoor management is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐

26.	On a share of Rs.200 of a company a shares holder has already paid Rs.150 . His L9iability is now limited to:‐
A.	200
B.	50
C.	150
D.	0
Answer» B. 50

27.	‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ refers to a voluntary association of individuals formed for the purpose of obtaining a particular social or economical goal.
A.	Illegal Association
B.	Partnership
C.	Incorporation
D.	Company
Answer» D. Company

28.	A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a document but invites the public to subscribe for share and debentures
A.	Memorandum
B.	Articles
C.	Prospectus
D.	Certificate
Answer» C. Prospectus

29.	The ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ issues the certificate of incorporation
A.	Register
B.	Director
C.	Court
D.	All of the above
Answer» A. Register

30.	Corporate veil ensures ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the company
A.	Protection
B.	Legal Immunity
C.	Both A and B
D.	None of the above.
Answer» B. Legal Immunity

32.	Doctrine of Ultra virus has reference to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ clause
A.	Object
B.	Subscription
C.	Liability
D.	None of these.
Answer» A. Object

33.	Which doctrine protects the out of the outsiders from the company?
A.	The doctrine of Ultra virus
B.	The doctrine of indoor management
C.	Both A and B
D.	None of the above
Answer» B. The doctrine of indoor management

35.	Sec. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies Act deals with the meaning and provisions related to the shelf prospectus.
A.	50
B.	4(1)
C.	2(2)
D.	60
Answer» D. 60

36.	Sec. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies act states that, a public company making an issue of securities shall circulate information memorandum to the public before filling of a prospectus.
A.	60(B)
B.	60(a)
C.	16(B)
D.	16(a)
Answer» A. 60(B)

37.	The person of group who being a company into existence are called‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A.	A firm
B.	Incorporation
C.	Promoters
D.	Promotion
Answer» C. Promoters