Companies Act Quiz

As per the Companies Act, 2013, a "company" means:

• An association of persons

• A company incorporated under this Act or under any previous company law

• A partnership firm registered with the Registrar

• Any business entity operating in India

Which of the following is NOT a fundamental characteristic of a company?

• Perpetual Succession

• Separate Legal Entity

• Mutual Agency

• Limited Liability

The concept that a company is distinct from its members is known as:

• Unlimited Liability

• Corporate Social Responsibility

• Separate Legal Entity

• Dissolution

"Perpetual Succession" means that a company:

• Has an unlimited lifespan regardless of changes in membership

• Must always have the same directors

• Can never be dissolved

• Continues to exist only as long as its original members are alive

The 'corporate veil' refers to the legal concept that:

• Hides the company's financial records

• Protects the company from government scrutiny

• Separates the company's personality from its members

• Provides secrecy in company operations

When the separate legal identity of a company is disregarded by the courts, it is known as:

• Company restructuring

• Corporate dissolution

• Lifting or Piercing the Corporate Veil

• Mergers and acquisitions

Which of the following is a common ground for lifting/piercing the corporate veil?

• Company earning high profits

• Company fulfilling its objectives

• Company formed for fraudulent purposes or to evade taxes

• Company having a large number of shareholders

In a partnership, the liability of partners is generally:

• Limited to their capital contribution

• Unlimited

• Limited by guarantee

• Dependent on the firm's profits

Which of the following is a key difference between a company and a partnership regarding legal status?

• A company has a separate legal entity, a partnership does not.

• A partnership has a separate legal entity, a company does not.

• Both have separate legal entities.

• Neither has a separate legal entity.

A Limited Liability Partnership (LLP) combines features of:

• A company and a sole proprietorship

• A partnership and a company

• A Hindu Undivided Family (HUF) and a company

• A trust and a partnership