Formation of a Company

Olivia and Henry want to start a private company. Minimum number of members to form a private company is------------

• 2

• 3

• 5

• 7

Kai and Nora are planning to start a public company. What is the minimum number of members required to form a public company?

• 5

• 7

• 12

• 21

Priya is starting a new company and needs to apply for approval of the company name. She should make the application to------------------------------

• SEBI

• Registrar of Companies

• Government of India

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

Jackson is proposing a name for his new company. The proposed name is considered undesirable if-----------------

• 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

Samuel is studying business law and comes across a question: A prospectus is issued by---------------------

• A private company

• A public company seeking investment from public

• A public enterprise

• A public company

Benjamin and William are discussing whether it is necessary to get every company incorporated, whether private or public.

• True

• False

• Not sure

Abigail and David are starting a new company. They cannot come into existence without:

• Electing Directors

• Getting certificate of incorporation

• Issuing a prospectus

• All of these

Mason and Charlotte are discussing the types of companies. Mason asks, 'The shares of -------- company can be freely transferable.'

• Private company

• Public Company

• Partnership

• All the above

Samuel and Elijah are discussing the advantages of forming a company. Which of the following is not a major advantage of a company?

• Separate legal entity

• Continuous life

• Government regulations

• Transferable ownership rights

Liam and Aria started a company together. One day, they were discussing what would happen to the company if all its members were to pass away. Which feature of the company does this statement signify:

• Perpetual Existence

• Professional Management

• Limited Liability

• Transfer of Interest