WorksheetsFormation of a company
Total questions: 15
Worksheet time: 8mins
Application for approval of name of a company is to be made to------------------------------
SEBI
Registrar of Companies
Government of India
Government of the State in which Company is to be registered
A proposed name of Company is considered undesirable-----------------
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
A prospectus is issued by---------------------
A private company
A public company seeking investment from public
A public enterprise
A public company
It is necessary to get every company incorporated, whether private or public.
True
False
Not sure
If a company is registered on the basis of fictitious names, its incorporation is invalid.
True
False
A company cannot come into existence without:
Electing Directors
Getting certificate of incorporation
Issuing a prospectus
All of these
The shares of -------- company can be freely transferable.
Private company
Public Company
Partnership
All the above
Which of the following is not a major advantage of a company?
Separate legal entity
Continuous life
Government regulations
Transferable ownership rights
Which is the safest form of investment in a limited company?
Long-term debentures
Ordinary shares
Preference shares
Short-term debentures
The account Retained Earnings is
a subdivision of share capital
profit retained in the company
reported as an expense in the income statement
transferred to share capital account
A provision is an amount charged as an expense, while a reserve is an appropriation of profit for a specific purpose.
True
False
What is are some characteristics of a public limited company?
A name, unlimited liabilities, perpetual succession
A name, limited liabilities, perpetual succession
A single person, shares, advertisements
A song, a dance, a clown
What are some documents required for the formation of a public limited company?
Article and memorandum of association.
A car.
An already established business.
A private jet.
What are the main managers/owners of a public limited company called?
Owners and managers
Bosses and mentors
Directors and shareholders
Principals and boards
What is one advantage of a public limited company?
They get free food.
They can tell private limited companies what to do.
They can buy an unlimited amount of vehicles.
Shares are easily transferable.
