Ch 2 - Formation of a Company

The document containing the rules, regulations and bye-laws of a company.

• Prospectus

• Memorandum of Association

• Articles of Association

• None of these

The document inviting subscriptions for shares and debentures.

• MOA

• Prospectus

• AOA

• Charter of company

The amount of money which must be raised before allotment of shares.

• Equity

• Capital

• Share capital

• Minimum subscription

The principal document of a company?

• MOA

• AOA

• Prospectus

• Incorporation Certificate

The clause containing the name of the state in which the registered office of the company is to be situated.

• Situation clause

• Place clause

• Registered office clause

• None of these

The Board of Directors enters into an agreement with others by indicating the company‘s approval through a ______________.

• Control

• Common Seal

• Risk bearing

• Liability

The shareholders do not have the right to be involved in the day-to-day running of the business.

• Risk bearing

• Common seal

• Liability

• Control

Members may come and members may go, but the company continues to exist. Identity the feature of company highlighted here.

• Perpetual succession

• Formation

• Separate legal entity

• Artificial person

The purpose of this study is to assess if the raw materials and technology required to pursue a particular business proposal are easily available.

• Economic feasibility study

• Technical feasibility study

• Financial feasibility study

• None of the above

Application for approval of name of a company is to be made to_______________.

• SEBI

• Registrar of companies

• GOI

• State government in which company is registered