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COMPANY LAW - BB Revision 1

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Property of the company belongs to

a)

Shareholders

b)

company

c)

members

d)

promoters

2.

The liability of members if company is limited by shares

a)

Unpaid value of shares

b)

Guarantee amount

c)

Unlimited liability

d)

none

3.
Can the company secretary be a director of the company? 
a)
Yes, but not the sole director. 
b)
Yes, and become the sole director.
c)
No, it's impossible. 
d)
I need to study more. 
4.

Which is not a characteristics of a company?

a)

Legal personality

b)

Limited liability

c)

Perpetual succession

d)

No common seal

5.

Who takes full legal responsibility in a company limited by shares?

a)

The shareholders

b)

The owners

c)

The directors

d)

The government

6.

The process of forming a company including where it becomes a legal entity is known as ______.

a)

Incorporation

b)

A franchise

c)

Liquidity

d)

Goodwill

7.

The word Company is derived from

a)

French

b)

Latin

c)

Japan

d)

Indian

8.

The companies which are established by king and queen is known as

a)

Statutory companies

b)

Chartered companies

c)

Registered companies

d)

Government companies

9.

---------- is the most popular types of companies

a)

Statutory companies

b)

Association for profit

c)

Registered companies

d)

One person company

10.

--------- is the first stage of formation of a company

a)

Registration

b)

Promotion

c)

Commencement of business

d)

Application

11.

The relationship of the promoter to the company

a)

Agent

b)

Trustee

c)

Fiduciary

d)

Officer

12.

The Registrar may reserve the name for ---days from the date of application

a)

50

b)

60

c)

70

d)

80

13.

Who is the head and brain of the company?

a)

Shareholders

b)

Employees

c)

Directors

d)

Stakeholders

14.

Who is the head and brain of the company?

a)

Shareholders

b)

Employees

c)

Directors

d)

Stakeholders

15.

DIN stands for

a)

Director identification number

b)

Directive identification Nil

c)

Decisive information number

d)

Director information numerical

16.

ROC stands for

a)

Regional office certificate

b)

Registrar of Companies

c)

Region of corpus

d)

Register of companies

17.

The word 'Ltd' is used for--------- company

a)

Private company

b)

Public Company

c)

Government company

d)

Foreign company

18.

---------- is the constitution of the company

a)

Memorandum

b)

Articles

c)

Prospectus

d)

Agenda

19.

Articles of Association is the foundation upon which the whole structure of the company is built up

a)

True

b)

False

20.

1. The term ‘ultra vires’ means------------------

a)

with the power

b)

Beyond the power

c)

Directors power

d)

Shareholders power