McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
Chapters
| 1. |
How many members should sign the MOA in case of public company ______. |
| A. | 1 |
| B. | 3 |
| C. | 5 |
| D. | 7 |
| Answer» D. 7 | |
| 2. |
How many members should sign the MOA in case of private company ________ |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» B. 2 | |
| 3. |
In case of appointment of Directors ______ form is to be filed |
| A. | 29 |
| B. | 32 |
| C. | 18 |
| D. | 1 |
| Answer» A. 29 | |
| 4. |
______ is the conclusive evidence in case of company that statutory requirements have complied with |
| A. | certificate of incorporation |
| B. | certificate of commencement of business |
| C. | both |
| D. | none of the above |
| Answer» A. certificate of incorporation | |
| 5. |
Private company can start its business immediately after the issue of |
| A. | certificate of commencement of business |
| B. | certificate of incorporation |
| C. | both |
| D. | none of the above |
| Answer» B. certificate of incorporation | |
| 6. |
The doctrine of indoor management is an ______to the doctrine of constructive notice |
| A. | Exception |
| B. | Extension |
| C. | Alternative |
| D. | None of the above |
| Answer» B. Extension | |
| 7. |
The doctrine of _________ does not apply to acts void ab initio. |
| A. | Ultra virus |
| B. | Intra virus |
| C. | constructive notice |
| D. | Indoor management |
| Answer» D. Indoor management | |
| 8. |
A company can change its name at its own discretion by passing _________ |
| A. | Ordinary resolution |
| B. | Special resolution |
| C. | Boards resolution |
| D. | None of the above |
| Answer» B. Special resolution | |
| 9. |
Any change in the address of the registered office must be communicated to the registrar within: |
| A. | 15 days |
| B. | 30 days |
| C. | 1 Month |
| D. | 12 months |
| Answer» C. 1 Month | |
| 10. |
An act ultra virus the directors can be rectified if it is not ultra vires |
| A. | the articles |
| B. | the memorandum |
| C. | Company Act |
| D. | None of the above |
| Answer» C. Company Act | |
| 11. |
The lending of funds ultra vires, the company has no rights |
| A. | under the company’s Act |
| B. | contract Act |
| C. | under equity |
| D. | None of the above |
| Answer» A. under the company’s Act | |
| 12. |
If a new company get registered with a name which resembles the name of existing company then it should apply to whom? |
| A. | NCLT |
| B. | SEBI |
| C. | ROC |
| D. | None of the above |
| Answer» A. NCLT | |
| 13. |
Companies are now allotted a _______ in addition to their name |
| A. | PAN |
| B. | SIN |
| C. | PIN |
| D. | CIN |
| Answer» D. CIN | |
| 14. |
In how many days did the company have its registered office after incorporation |
| A. | 10 |
| B. | 20 |
| C. | 30 |
| D. | 40 |
| Answer» C. 30 | |
| 15. |
Under which sec. if company fails to commence its main object the court may order winding up |
| A. | 403 (f) |
| B. | 413 (f) |
| C. | 423 (f) |
| D. | 433 (f) |
| Answer» D. 433 (f) | |
| 16. |
In case of forgeries acts done in the name of the company are |
| A. | Valid |
| B. | Void |
| C. | Void ab initio |
| D. | None of the above |
| Answer» C. Void ab initio | |
| 17. |
Signature of memorandum and articles should be done by ___________ number of persons in case of public company |
| A. | 7 |
| B. | 5 |
| C. | 4 |
| D. | None of these |
| Answer» A. 7 | |
| 18. |
Signature of memorandum and articles should be done by ___________number of persons in case of private company |
| A. | 3 |
| B. | 4 |
| C. | 2 |
| D. | None of these |
| Answer» C. 2 | |
| 19. |
MOA should be in form ____________ in case of company limited by shares |
| A. | Table A |
| B. | Table B |
| C. | Table C |
| D. | Table D |
| Answer» B. Table B | |
| 20. |
MOA should be in form ____________ in case of company limited by guarantee not having share capital |
| A. | Table A |
| B. | Table B |
| C. | Table C |
| D. | Table D |
| Answer» C. Table C | |
| 21. |
MOA should be in form ________ in case of company limited by guarantee and having share capital |
| A. | Table A |
| B. | Table B |
| C. | Table C |
| D. | Table D |
| Answer» D. Table D | |
| 22. |
MOA should be in form ____________ in case of a unlimited liability |
| A. | Table A |
| B. | Table B |
| C. | Table E |
| D. | None of these |
| Answer» C. Table E | |
| 23. |
In the MOA there are 6 clauses. We can alter all clauses expect one clause. What is that clause? |
| A. | Objects clause |
| B. | Name clause |
| C. | Association clause |
| D. | None of these |
| Answer» C. Association clause | |
| 24. |
If anybody wants to file a case against the company they should file at what place _________ |
| A. | Company |
| B. | Registered Office |
| C. | BOD |
| D. | Books of accounts |
| Answer» B. Registered Office | |
| 25. |
Address of the registered office is situated in |
| A. | MOA |
| B. | AOA |
| C. | Prospectus |
| D. | None of these |
| Answer» B. AOA | |
| 26. |
Which of the following need not have MOA |
| A. | Public company |
| B. | Private company |
| C. | Government company |
| D. | Statutory Corporation. |
| Answer» D. Statutory Corporation. | |
| 27. |
A company can change its name by passing |
| A. | Ordinary resolution |
| B. | Special resolution |
| C. | Either by special resolution or by ordinary resolution |
| D. | None of the above |
| Answer» D. None of the above | |
| 28. |
Ultra vires means |
| A. | Beyond the power |
| B. | Within the power |
| C. | Both |
| D. | None of the above |
| Answer» A. Beyond the power | |
| 29. |
Ultra vires loans granted by the company are |
| A. | Void |
| B. | Voidable |
| C. | Valid |
| D. | None of the above |
| Answer» A. Void | |
| 30. |
What is known as a charter of a Company? |
| A. | Memorandum |
| B. | Articles |
| C. | Bye laws |
| D. | Prospectus |
| Answer» A. Memorandum | |
| 31. |
The granting of the certificate of incorporation renders the illegal objects include in the memorandum: |
| A. | Legal |
| B. | Void |
| C. | Voidable |
| D. | None of the above |
| Answer» B. Void | |
| 32. |
Change in objects clauses can be effected |
| A. | For any reason |
| B. | For special reason only |
| C. | to comply with C.G order |
| D. | None of the above |
| Answer» B. For special reason only | |
| 33. |
The capital clause of a company can be changed with the permission of _____________ |
| A. | Company law board |
| B. | Registrar |
| C. | Court |
| D. | None of the above |
| Answer» C. Court | |
| 34. |
______ conceives the idea of the business |
| A. | Promoters |
| B. | Directors |
| C. | Auditors |
| D. | None of the above |
| Answer» A. Promoters | |
| 35. |
_______stands in the fiduciary position of the company |
| A. | Directors |
| B. | Promoters |
| C. | Auditors |
| D. | None of the above |
| Answer» B. Promoters | |
| 36. |
______ are the contracts entered into by promoters on behalf of a prospectus company. |
| A. | Provisional contracts |
| B. | Pre Incorporation contracts |
| C. | Preliminary contracts |
| D. | Both a) & b) |
| Answer» D. Both a) & b) | |
| 37. |
Contracts made after incorporation but before the grant of Certificate of commencement of Business _____ |
| A. | Provisional contracts |
| B. | Pre incorporation contracts |
| C. | Preliminary contracts |
| D. | Both (b) & (c) |
| Answer» C. Preliminary contracts | |
| 38. |
Pre incorporation contract is also known as _________ |
| A. | Provisional |
| B. | Preliminary |
| C. | illegal |
| D. | legal |
| Answer» B. Preliminary | |
| 39. |
A public company can borrow money ___________ |
| A. | before incorporation |
| B. | Soon after incorporation |
| C. | after issuing a proposal |
| D. | after obtaining certificate to commerce business. |
| Answer» D. after obtaining certificate to commerce business. | |
| 40. |
A private company can borrow funds |
| A. | after incorporation |
| B. | after obtaining certificate to commerce business |
| C. | after holding first annual general meeting |
| D. | None of the above |
| Answer» A. after incorporation | |
| 41. |
A promoter is a person who |
| A. | is a director. |
| B. | is a relative of the company. |
| C. | is a wellwisher of the company. |
| D. | takes part in the companys incorporation. |
| Answer» D. takes part in the companys incorporation. | |
| 42. |
When there is a untrue statement in a prospectus who can sue |
| A. | Subscribed in primary market |
| B. | Subscribed in secondary market |
| C. | Rights issue |
| D. | None of the above |
| Answer» A. Subscribed in primary market | |
| 43. |
Definition of prospectus was given under which sec. |
| A. | 2 (30) |
| B. | 2 (32) |
| C. | 2 (34) |
| D. | 2 (36) |
| Answer» D. 2 (36) | |
| 44. |
Which of the following are not required to issue prospectus? |
| A. | Private company |
| B. | In case of right issue |
| C. | Sweat equity issue |
| D. | All the above |
| Answer» D. All the above | |
| 45. |
_______are the prospectus issued instead of full prospectus |
| A. | Abridged |
| B. | Statement in lieu |
| C. | Shelf |
| D. | Red herring |
| Answer» A. Abridged | |
| 46. |
Which one of the following has a right to claim compensation for any loss due to misstatement in prospectus |
| A. | Purchasing shares in Primary Market |
| B. | Secondary Market |
| C. | Subscribers to memo. |
| D. | All the above |
| Answer» A. Purchasing shares in Primary Market | |
| 47. |
_______ years of imprisonment will be imposed in case of issue of prospectus with untrue statements |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» B. 2 | |
| 48. |
What is the liability not delivering that can be imposed for statement in lieu of prospectus_________ |
| A. | Fine – 10,000 |
| B. | Imprisonment – 2 years |
| C. | Both (a) & (b) |
| D. | None of the above |
| Answer» A. Fine – 10,000 | |
| 49. |
_______ are the prospectus issued by the issuing house |
| A. | Deemed prospectus |
| B. | Shelf prospectus issued by the issuing house |
| C. | Red herring |
| D. | None of the above |
| Answer» A. Deemed prospectus | |
| 50. |
_________ prospectus were issued in case securities were issued in stages |
| A. | Deemed |
| B. | Shelf |
| C. | Red herring |
| D. | None of the above |
| Answer» B. Shelf | |
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