Formation of a company

Application for approval of name of a company is to be made to------------------------------

• SEBI

• Registrar of Companies

• Government of India

• Government of the State in which Company is to be registered

A proposed name of Company is considered undesirable-----------------

• It is identical with the name of an existing company

• It resembles closely with the name of an existing company

• It is an emblem of Government of India, United Nations etc.

• In case of any of the above

A prospectus is issued by---------------------

• A private company

• A public company seeking investment from public

• A public enterprise

• A public company

It is necessary to get every company incorporated, whether private or public.

• True

• False

• Not sure

If a company is registered on the basis of fictitious names, its incorporation is invalid.

• True

• False

A company cannot come into existence without:

• Electing Directors

• Getting certificate of incorporation

• Issuing a prospectus

• All of these

The shares of -------- company can be freely transferable.

• Private company

• Public Company

• Partnership

• All the above

Which of the following is not a major advantage of a company?

• Separate legal entity

• Continuous life

• Government regulations

• Transferable ownership rights

Which is the safest form of investment in a limited company?

• Long-term debentures

• Ordinary shares

• Preference shares

• Short-term debentures

The account Retained Earnings is

• a subdivision of share capital

• profit retained in the company

• reported as an expense in the income statement

• transferred to share capital account