McqMate
Chapters
| 1. |
______ conceives the idea of the business |
| A. | Promoters |
| B. | Directors |
| C. | Auditors |
| D. | None of the above |
| Answer» A. Promoters | |
| 2. |
_______stands in the fiduciary position of the company |
| A. | Directors |
| B. | Promoters |
| C. | Auditors |
| D. | None of the above |
| Answer» B. Promoters | |
| 3. |
______ 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) | |
| 4. |
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 | |
| 5. |
Pre incorporation contract is also known as _________ |
| A. | Provisional |
| B. | Preliminary |
| C. | illegal |
| D. | legal |
| Answer» B. Preliminary | |
| 6. |
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. | |
| 7. |
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 | |
| 8. |
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. | |
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