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Practice quiz -Corporate Law

Total questions: 42

Worksheet time: 21mins

Name
Class
Date
1.

The Liability of every shareholder of a company is (a)  

2.

The portion of share capital of the company that can be called only at the time of winding up of the company

a)

Reserve capital

b)

called up capital

c)

uncalled capital

3.

WHICH OF THE FOLLOWING ARE NOT THE CHARACTERISTIC OF A COMPANY?

a)

IT EXISTS ONLY UNDER THE LAW

b)

THE MEMBERS CANNOT BE SUED FOR THE DEBTS OF A COMPANY

c)

IT COMES TO AN END ON THE DEATH OF ALL ITS MEMBERS

4.

WHAT IS THE MINIMUM NUMBER OF MEMBER REQUIRED TO FORM A PUBLIC COMPANY?

a)

2

b)

4

c)

7

d)

9

5.

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

a)

Statutory companies

b)

Chartered companies

c)

Registered companies

d)

Government companies

6.

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

a)

Statutory companies

b)

Association for profit

c)

Registered companies

d)

One person company

7.

The minimum number of directors in a public company

a)

2

b)

3

c)

10

d)

15

8.

DIN stands for

a)

Director identification number

b)

Directive identification Nil

c)

Decisive information number

d)

Director information numerical

9.

ROC stands for

a)

Regional office certificate

b)

Registrar of Companies

c)

Region of corpus

d)

Register of companies

10.

Which company should not transfer shares?

a)

Private company

b)

Public Company

c)

Government company

d)

Domestic company

11.

Which of the following are the feature of the private co.

a)

Restriction on transfer of shares

b)

Limitation on membership

c)

Prohibition on inviting public to subscribe for securities

d)

All of the above

12.

In case of government companies more than 50% shares are hold by

a)

Central government

b)

State government

c)

Partly by State & Central govt

d)

All of the above

13.

Foreign co. is a company

a)

Registered in India

b)

Registered in India has place of business outside India

c)

Registered outside India has place of business in India

d)

None of the above

14.

Subsidiary co. means a company in which the holding co.

a)

Controls the composition of Board of Directors

b)

Control more than 50% of total share capital

c)

All of the above

15.

XYZ Limited is a company registered in Singapore. XYZ Limited is doing business in India through electronic mode and physically there is no place of business in India. Whether XYZ Limited will be treated as a Foreign Company under the Companies Act, 2013?

a)

yes

b)

no

16.

What is the minimum paid up capital required to incorporate a private company?

a)

2Lakhs

b)

No minimum paid up capital required

c)

1 lakh

17.

What is the minimum of directors required in the case of a private company?

a)

3

b)

2

c)

1

d)

4

18.

‘Small company’’ means a company, other than a public company

a)

paid-up share capital of which does not exceed fifty lakh rupees or such higher amount as may be prescribed which shall not be more than five crore rupees;

b)

turnover of which as per its last profit and loss account does not exceed two crore rupees or such higher amount as may be prescribed which shall not be more than twenty crore rupees.

c)

in which not less than fifty one per cent of the paid-up share capital is held by Central or State Government or governments or partly by one and partly by others.

19.

To start the working for a Private Companies , they need :

a)

certificate of commencement of business

b)

certificate of incorporation

c)

Both of the above.

20.

Private Company have the right to transfer its shares.

This statement is ..?

a)

True

b)

False

21.

Full Form of OPC (a)  

22.

Can a company own a Property in their own name ?

a)

Yes

b)

No

23.

A Company is an artificial person created by .... .

a)

Law

b)

Human Being

c)

Result of an commercial activity

24.

Section – 8 is for what kind of company .

a)

Trading company

b)

Formation of companies with charitable objects, etc

c)

Angle investors

25.

PERPETUAL SUCCESSION MEANS (a)  

26.

ONE PERSON COMPANY CAME INTO FORCE AFTER WHICH AMENDED ACT?

a)

2013

b)

2015

c)

2016

d)

2017

27.

A company with one director and one shareholder is called ____________

a)

OCP

b)

OPC

c)

CSR

d)

OPP

28.

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

29.

Can an One Person Company be converted into a Public/Private Company?

a)

Yes

b)

No

30.

Tick all the demerits of a company from the followinig.

a)

Formalities

b)

More tax burden

c)

Limited liability

d)

Possibility of fraud

31.

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

32.

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

a)

True

b)

False

33.

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

a)

Memorandum

b)

Articles

c)

Prospectus

d)

Agenda

34.

Doctrine of indoor management safeguards----

a)

Company

b)

Director

c)

Third party

d)

Ignorant stranger

35.

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

a)

Private company

b)

Public company

c)

Investment company

d)

Government company

36.

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

a)

Private company

b)

Public company

c)

Investment company

d)

Government company

37.

Which of the following is a special feature of a Company?

a)

Artificial Person

b)

Separate Legal Entity

c)

Limited Liability

d)

All of them

38.

Reserve Bank of India, Life insurance Corporation are examples of ....

a)

Statutory Company

b)

Government Company

c)

Foreign Company

d)

Chartered Company

39.
What can be lifted if the company is used to perpetrate fraud or act ultra vires? 
a)
The carporate veil may be lifted.
b)
The company loses money. 
c)
An expensive fine may be lifted. 
d)
I need to study more. 
40.
Who issues a certificate of incorporation? 
a)
The company itself. 
b)
A governental authority. 
c)
It's issues automatically. 
d)
I need to study more. 
41.
A legal person cannot...
a)
enter into contracts
b)
sue others
c)
own property
d)
avoid liability
42.
A company doesn't have...
a)
shareholders
b)
board of directors
c)
creditors
d)
absolute power