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Worksheets

company law

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Articles of Association deals with

a)

shareholders

b)

Outsiders

c)

Directors

d)

Employees

2.

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

a)

Charitable companies

b)

Non- Trading company

c)

All of the above

3.

Property of the company belongs to

a)

Shareholders

b)

company

c)

members

d)

promoters

4.

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

a)

Private company

b)

Public Company

c)

Guarantee company

d)

Listed company

5.

Which is not a characteristics of a company?

a)

Legal personality

b)

Limited liability

c)

Perpetual succession

d)

No common seal

6.

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

a)

1

b)

5

c)

7

d)

3

7.
Can the company secretary be a director of the company? 
a)
Yes, but not the sole director. 
b)
Yes, and become the sole director.
c)
No, it's impossible. 
d)
I need to study more. 
8.
What are the two types of duty owed by directors of a company? 
a)
Duty of interaction. 
b)
Duty of care; fiduciary duty. 
c)
They don't owe any duty. 
d)
I need to study more. 
9.

The term perpetual succession mean

a)

Going to be die

b)

Never dies

c)

Member operated only

d)

Separate property

10.

Shares in private company ______

a)

never transferable

b)

can be transfered with approval of other members

c)

Freely transferable

d)

Transfer by company law Board only

11.

Minimum number of members required to form a public company are

a)

2

b)

5

c)

1

d)

3

12.

Audit of accounts are compulsory in case of public companies.

a)

False

b)

Partially false

c)

True

d)

Partially true

13.

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

14.

The maximum number of shareholders for public company

a)

200

b)

300

c)

400

d)

Unlimited

15.
What are the owners of a company insulated against? 
a)
Personal liability. 
b)
Public liability. 
c)
They are not insulated against anything.
d)
I need to study more. 
16.

What documents constitute the 'constitution of a company'?

a)

An article of association & contract.

b)

Memorandum of association & letter of application.

c)

article of association.

d)

I need to study more.

17.

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

a)

Memorandum

b)

Articles

c)

Certificate of incorporation

d)

Minutes

18.

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

a)

The shareholders

b)

The owners

c)

The directors

d)

The government

19.

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

a)

Registration

b)

Promotion

c)

Commencement of business

d)

Application

20.

The minimum number of directors in a public company

a)

1

b)

2

c)

10

d)

15