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Company law introduction

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

In which year present Companies Act comes into force?

a)

1956

b)

2013

c)

2018

d)

2020

2.

Minimum number of members required to form a public company are

a)

2

b)

5

c)

7

d)

3

3.

The term perpetual succession mean

a)

Going to be die

b)

Never dies

c)

Member operated only

d)

Separate property

4.

Shares in private company ______

a)

never transferable

b)

can be transfer with approval of other members

c)

Freely transferable

d)

Transfer by company law Board only

5.

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

6.

DIN stands for

a)

Director identification number

b)

Directive identification Nil

c)

Decisive information number

d)

Director information numerical

7.

The maximum number of shareholders for public company

a)

200

b)

300

c)

400

d)

Unlimited

8.

Which one of the following is NOT a characteristic of a company

a)

Huge Capital

b)

Share Transferability

c)

Capacity to file cases

d)

Public seal

9.

Reliance industries which is headed by Mukesh Ambani is an example of ___________

a)

Chartered Company

b)

Registered Company

c)

One Person Company

d)

Statutory Company

10.

Companies formed under special regulations of the government is called __________________

a)

Statutory Company

b)

Regulated Company

c)

Government Company

d)

Associate Company

11.

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

a)

The shareholders

b)

The owners

c)

The directors

d)

The government

12.

The minimum number of shareholders in a private company

a)

2

b)

7

c)

50

d)

200

13.

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

a)

Registration

b)

Promotion

c)

Commencement of business

d)

Application

14.

The relationship of the promoter to the company

a)

Agent

b)

Trustee

c)

Fiduciary

d)

Officer

15.

The minimum number of directors in a public company

a)

2

b)

3

c)

10

d)

15

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.

Which company should not transfer shares?

a)

Private company

b)

Public Company

c)

Government company

d)

Domestic company

19.

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

a)

Memorandum

b)

Articles

c)

Prospectus

d)

Agenda

20.

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

a)

True

b)

False

21.

Memorandum of Association deals with

a)

Insiders

b)

Outsiders

c)

Directors

d)

Employees

22.

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

a)

with the power

b)

Beyond the power

c)

Directors power

d)

Shareholders power

23.

-----Document contains the rules and regulations regarding the internal management

a)

Memorandum

b)

Articles

c)

Certificate of incorporation

d)

Minutes

24.

Doctrine of indoor management safeguards----

a)

Company

b)

Director

c)

Third party

d)

Ignorant stranger

25.

----------- company is prohibited to issue prospectus

a)

Private company

b)

Public company

c)

Investment company

d)

Government company