McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 101. |
who among the following has no right to speak at the AGM? |
| A. | chairman of the company. |
| B. | whole time director of the company. |
| C. | proxy holders. |
| D. | none of the above, as everybody has the right to speak at the agm. |
| Answer» C. proxy holders. | |
| 102. |
Voting in a company Meeting can be through. |
| A. | ballot. |
| B. | raising hands. |
| C. | raising voice. |
| D. | all of these. |
| Answer» D. all of these. | |
| 103. |
Which document should be annexed to the notice of the statutory meeting? |
| A. | statutory report. |
| B. | proxy form. |
| C. | explanatory statement. |
| D. | both (a) and (b). |
| Answer» D. both (a) and (b). | |
| 104. |
The first Chairman is generally. |
| A. | elected by the board of directors. |
| B. | elected by the members. |
| C. | named in the article. |
| D. | named in the memorandum. |
| Answer» C. named in the article. | |
| 105. |
East India Company is an example of. |
| A. | statutory company. |
| B. | registered company. |
| C. | chartered company. |
| D. | none of these. |
| Answer» C. chartered company. | |
| 106. |
Where there is a non-executive chairman, at least …..of board should comprise of independent directors. |
| A. | 1/3 |
| B. | 2/3 |
| C. | ½ |
| D. | none of these |
| Answer» A. 1/3 | |
| 107. |
The Whistle Blower Policy was recommended by……………. |
| A. | n.r.narayana moorthy |
| B. | anil ambani |
| C. | chris gopalakrishnan |
| D. | asim premji |
| Answer» A. n.r.narayana moorthy | |
| 108. |
Audit Committee shall meet at least ………..times a year |
| A. | 5 |
| B. | 2 |
| C. | 4 |
| D. | 3 |
| Answer» C. 4 | |
| 109. |
A public company is one which has a minimum paid up capital Rs...lakhs. |
| A. | 1 |
| B. | 5 |
| C. | 8 |
| D. | 10 |
| Answer» B. 5 | |
| 110. |
A private company is one which has a minimum paid up capital Rs…….lakhs. |
| A. | 1 |
| B. | 5 |
| C. | 8 |
| D. | 10 |
| Answer» A. 1 | |
| 111. |
The contracts signed by the promoters of a company continue to be the liability of ………. |
| A. | promoters |
| B. | company |
| C. | partners |
| D. | none |
| Answer» A. promoters | |
| 112. |
A promoter of a company stands in the position of …….to future allottees of shares. |
| A. | agent |
| B. | fiduciary |
| C. | solicitor |
| D. | trustee |
| Answer» B. fiduciary | |
| 113. |
……persons shall subscribe to the memorandum of a public company. |
| A. | 7 |
| B. | 9 |
| C. | 8 |
| D. | 10 |
| Answer» A. 7 | |
| 114. |
The altered memorandum must be filed with the registrar within ………….months. |
| A. | 30 days |
| B. | three months |
| C. | 60 days |
| D. | six months |
| Answer» B. three months | |
| 115. |
An act which is to be ultra vires a company is…………… |
| A. | valid |
| B. | voidable |
| C. | void |
| D. | none |
| Answer» C. void | |
| 116. |
A company issues prospectus within………….of its registration. |
| A. | 30 days |
| B. | three months |
| C. | 60 days |
| D. | six months |
| Answer» C. 60 days | |
| 117. |
The altered memorandum must be filed with the registrar within………. |
| A. | 30 days |
| B. | three months |
| C. | 60 days |
| D. | six months |
| Answer» B. three months | |
| 118. |
The statement in lieu of prospectus must be filed with the registrar at least ………before any allotment of shares is made. |
| A. | 30 days |
| B. | three days |
| C. | 60 days |
| D. | six months |
| Answer» B. three days | |
| 119. |
Notice of the registered office of the company shall be given to the registrar of companies within………… |
| A. | 30 days |
| B. | three months |
| C. | 60 days |
| D. | six months |
| Answer» A. 30 days | |
| 120. |
The judgement in the case of Foss Vs Hurbottle lays down the principle of …… |
| A. | rule of majority |
| B. | constructive notice |
| C. | indoor management |
| D. | public notice |
| Answer» A. rule of majority | |
| 121. |
All those who are dealing with the company are expected to know the contents of the memorandum and articles. This doctrine is called…………………….. |
| A. | rule of majority |
| B. | constructive notice |
| C. | indoor management |
| D. | public notice |
| Answer» B. constructive notice | |
| 122. |
The famous case of Royal British Bank Vs Turquand laid down the rule of…………. |
| A. | rule of majority |
| B. | constructive notice |
| C. | indoor management |
| D. | public notice |
| Answer» C. indoor management | |
| 123. |
The new section 60A relates to………… |
| A. | memorandum of association |
| B. | articles of association |
| C. | prospectus |
| D. | shelf prospectus |
| Answer» D. shelf prospectus | |
| 124. |
The office of the director becomes vacant if he fails to obtain his qualification shares within …………..months. |
| A. | 6 |
| B. | 3 |
| C. | 2 |
| D. | 5 |
| Answer» C. 2 | |
| 125. |
The management of every company is controlled by ……………….. |
| A. | manager |
| B. | secretary |
| C. | director |
| D. | none of these |
| Answer» C. director | |
| 126. |
As per Sec.274, a person shall not be appointed as director if he is found to be of unsound mind by……… |
| A. | manager |
| B. | a court of competent jurisdiction |
| C. | board of directors |
| D. | none of these |
| Answer» B. a court of competent jurisdiction | |
| 127. |
As per Sec 260, the additional directors are entitled to hold office only upto next ………… meeting |
| A. | board |
| B. | annual general |
| C. | departmental |
| D. | statutory |
| Answer» B. annual general | |
| 128. |
A director who is interested in any transaction of the company is bound to disclose his interest to……… |
| A. | manager |
| B. | secretary |
| C. | employees |
| D. | board of directors |
| Answer» D. board of directors | |
| 129. |
Any breach of duty in the conduct of the company’s affairs which causes loses to the company is called |
| A. | misfeasance |
| B. | negligence |
| C. | breach of fiduciary duty |
| D. | mala fide acts |
| Answer» A. misfeasance | |
| 130. |
According to sec 297, a director shall not enter into any contract with the company except with the consent of …….. |
| A. | manager |
| B. | secretary |
| C. | employees |
| D. | board of directors |
| Answer» D. board of directors | |
| 131. |
When a director does an act which is in excess of his powers and company suffers a loss … is liable to make good the loss |
| A. | manager |
| B. | secretary |
| C. | director |
| D. | board of directors |
| Answer» C. director | |
| 132. |
Unless the articles provide for the retirement of all directors at every annual general meeting, at least ………of the total number of directors retire by rotation. |
| A. | 1/3 |
| B. | 2/3 |
| C. | 2/4 |
| D. | 1/2 |
| Answer» B. 2/3 | |
| 133. |
The new Sec 60B introduced by the Companies (Amendment)Act 2000 is related to…….. |
| A. | articles of association |
| B. | memorandum of association |
| C. | prospectus |
| D. | information memorandum |
| Answer» D. information memorandum | |
| 134. |
The alteration of the objects of a company must be confirmed by the Company law…….. |
| A. | board |
| B. | act |
| C. | tribunal |
| D. | none of these |
| Answer» C. tribunal | |
| 135. |
Which of the following statements are true - |
| A. | the charter of a company is its articles of association |
| B. | the object clause is divided into three parts |
| C. | every company should have its own articles |
| D. | an advertisement can be treated as a prospectus |
| Answer» C. every company should have its own articles | |
| 136. |
Doctrine of indoor management is an exception to the principle of ……. |
| A. | rule of majority |
| B. | constructive notice |
| C. | public notice |
| D. | ultra vires |
| Answer» B. constructive notice | |
| 137. |
A company can change its name by passing ……….resolution. |
| A. | special |
| B. | extra ordinary |
| C. | ordinary |
| D. | none of these |
| Answer» A. special | |
| 138. |
The Companies (Amendment) Act 1988 provide that the companies should furnish along with the application form for shares or debentures, an………….instead of complete prospectus. |
| A. | shelf prospectus |
| B. | red herring prospectus |
| C. | abridged prospectus |
| D. | deemed prospectus |
| Answer» C. abridged prospectus | |
| 139. |
………….means a prospectus issued by any financial institution or bank for one or more issues of the securities specified in that document. |
| A. | shelf prospectus |
| B. | red herring prospectus |
| C. | abridged prospectus |
| D. | deemed prospectus |
| Answer» A. shelf prospectus | |
| 140. |
……….. gives only a general idea about securities. |
| A. | shelf prospectus |
| B. | red herring prospectus |
| C. | abridged prospectus |
| D. | deemed prospectus |
| Answer» B. red herring prospectus | |
| 141. |
The main advantage of …………. is that company can save underwriting expenses. |
| A. | shelf prospectus |
| B. | red herring prospectus |
| C. | abridged prospectus |
| D. | deemed prospectus |
| Answer» D. deemed prospectus | |
| 142. |
Prospectus by implication is also known as…. |
| A. | shelf prospectus |
| B. | red herring prospectus |
| C. | abridged prospectus |
| D. | deemed prospectus |
| Answer» D. deemed prospectus | |
| 143. |
Not less than ……. Days notice for a general meeting of a company must be given. |
| A. | 10 |
| B. | 15 |
| C. | 21 |
| D. | 30 |
| Answer» C. 21 | |
| 144. |
The minimum number of members that must be present at a valid meeting is called……… |
| A. | simple majority |
| B. | quorum |
| C. | proxy |
| D. | none of these |
| Answer» B. quorum | |
| 145. |
A proxy can vote in case of ………. |
| A. | poll |
| B. | meeting |
| C. | both |
| D. | none |
| Answer» A. poll | |
| 146. |
A special resolution is one to pass with the votes cast in favour must be ………..times the votes cast against it. |
| A. | 2 |
| B. | 3 |
| C. | 4 |
| D. | 6 |
| Answer» B. 3 | |
| 147. |
A special resolution must be filed with the registrar for registration within …….days. |
| A. | 10 |
| B. | 15 |
| C. | 21 |
| D. | 30 |
| Answer» D. 30 | |
| 148. |
To make the liability of directors unlimited a………..resolution is required. |
| A. | ordinary |
| B. | special |
| C. | both |
| D. | none |
| Answer» B. special | |
| 149. |
For declaration of dividend no ……...resolution is required. |
| A. | ordinary |
| B. | special |
| C. | both |
| D. | none |
| Answer» B. special | |
| 150. |
The demand for a poll may be withdrawn before ……….of the poll is declared. |
| A. | commencement |
| B. | closing |
| C. | result |
| D. | none |
| Answer» C. result | |
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