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Formation of a company

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Minimum number of members to form a private company is------------

a)

2

b)

3

c)

5

d)

7

2.

Minimum number of members to form a public company is-------------

a)

5

b)

7

c)

12

d)

21

3.

Application for approval of name of a company is to be made to------------------------------

a)

SEBI

b)

Registrar of Companies

c)

Government of India

d)

Government of the State in which Company is to be registered

4.

A proposed name of Company is considered undesirable-----------------

a)

It is identical with the name of an existing company

b)

It resembles closely with the name of an existing company

c)

It is an emblem of Government of India, United Nations etc.

d)

In case of any of the above

5.

A prospectus is issued by---------------------

a)

A private company

b)

A public company seeking investment from public

c)

A public enterprise

d)

A public company

6.

It is necessary to get every company incorporated, whether private or public.

a)

True

b)

False

c)

Not sure

7.

A private company can commence business after incorporation.

a)

True

b)

False

8.

If a company is registered on the basis of fictitious names, its incorporation is invalid.

a)

True

b)

False

9.

A company cannot come into existence without:

a)

Electing Directors

b)

Getting certificate of incorporation

c)

Issuing a prospectus

d)

All of these

10.

The shares of -------- company can be freely transferable.

a)

Private company

b)

Public Company

c)

Partnership

d)

All the above