Finance quiz 3 -Company Law Quiz

What is the minimum capital requirement for a private company?

• ₹10,000

• ₹50,000

• ₹1,00,000

• ₹5,00,000

What is the minimum capital requirement for a public company?

• ₹10,000

• ₹50,000

• ₹1,00,000

• ₹5,00,000

What is the maximum number of members allowed in a private company?

• 50

• 100

• 200

• Unlimited

What is the minimum number of members required to start a public company?

• 2

• 3

• 5

• 7

Which of the following is true about public companies?

• They cannot invite the public to subscribe to shares.

• They have restrictions on the transfer of shares.

• They can freely transfer shares to anyone.

• Their name must end with 'Private Limited.'

Which statement is true regarding a holding company?

• It has less than 51% of shares in another company.

• It prepares standalone financial statements.

• It has 51% or more shares in another company.

• It is controlled by a subsidiary company.

Which statement is true regarding a subsidiary company?

• It has more than 51% shares in another company.

• It controls the holding company.

• It prepares consolidated financial statements.

• It is controlled by the holding company.

Which type of shareholders have voting rights?

• Equity shareholders

• Preference shareholders

• Both equity and preference shareholders

• Neither equity nor preference shareholders

Which type of shareholders receive a fixed rate of dividend?

• Equity shareholders

• Preference shareholders

• Both equity and preference shareholders

• Neither equity nor preference shareholders

Which type of preference shares can be converted into equity shares?

• Convertible common shares
• Non-convertible preference shares
• Convertible preference shares
• Participating preference shares