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company law 1

Total questions: 15

Worksheet time: 10mins

Name
Class
Date
1.

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

a)

Memorandum

b)

Articles

c)

Prospectus

d)

Agenda

2.

Articles of Association deals with

a)

shareholders

b)

Outsiders

c)

Directors

d)

Employees

3.

Every co. must use the word "ltd." or "Pvt. Ltd." except

a)

Charitable companies

b)

Non- Trading company

c)

All of the above

4.

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

a)

with the power

b)

Beyond the power

c)

Directors power

d)

Shareholders power

5.

Can an ultra vires Act be ratified?

a)

Yes

b)

No

6.

Property of the company belongs to

a)

Shareholders

b)

company

c)

members

d)

promoters

7.

When company divided its shares into smaller denomination is called as

a)

consolidation of shares

b)

sub division of shares

c)

conversion into the stock

d)

Reduction of Share capital

8.

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

a)

Private company

b)

Public Company

c)

Guarantee company

d)

Listed company

9.

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

a)

Registration

b)

Promotion

c)

Commencement of business

d)

Application

10.

The relationship of the promoter to the company

a)

Agent

b)

Trustee

c)

Fiduciary

d)

Officer

11.

Which is not a characteristics of a company?

a)

Legal personality

b)

Limited liability

c)

Perpetual succession

d)

No common seal

12.

The word Company is derived from

a)

French

b)

Latin

c)

Japan

d)

Indian

13.

Regarding written resolutions, which ONE of the following statements in true?

a)

The members of a private company can request a written resolution, providing they hold a minimum of 10 per cent of the total voting rights in the company.

b)

In order to pass a written resolution, unanimity is required.

c)

The written resolution procedure cannot be used to remove an auditor before the expiry of his office.

d)

The written resolution procedure can be used by both public and private companies.

14.

Minimum number of members required to form a public listed company are

a)

1

b)

5

c)

7

d)

3

15.

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

a)

Incorporation

b)

A franchise

c)

Liquidity

d)

promotion