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Total questions: 42

Worksheet time: 21mins

Name
Class
Date
1.

In case of a company is limited by _____________, the liability of its members is limited to the unpaid amount of shares they hold.

a)

Shares

b)

Guarantee

c)

Directors

d)

Shareholders

2.

In the case of a company is limited by shares, the liability of its members is limited to ____________________.

a)

the amount of each members' contribution towards the assets of the company.

b)

the unpaid amount of shares they hold

c)

the entire liability of the company

d)

All of the above

3.

In the case of a company is limited by guarantee, the liability of its members is limited to ____________________.

a)

the amount of each members' contribution towards the assets of the company.

b)

the unpaid amount of shares they hold

c)

the entire liability of the company

d)

All of the above

4.

In case of a company is limited by _____________, the liability of its members is limited to the amount of each members' contribution towards the assets of the company.

a)

Shares

b)

Guarantee

c)

Directors

d)

Shareholders

5.

Which of the following details is not included in the Memorandum of a company?

a)

Registered office address

b)

Objects of the company

c)

Liability of various members of the company

d)

Shares of the shareholders

6.

According to the Indian Companies Act, 2013, there should be at least a minimum of 1 female director on the company's board who must have stayed in the country for at least 365 days and not less.

a)

The statement is true

b)

The statement is false

c)

The statement is not mandatory

d)

Cannot determine

7.

A company with one director and one shareholder is called ____________

a)

OCP

b)

OPC

c)

CSR

d)

OPP

8.

Buying or selling stock exchange with confidential information is called

(a)  

9.

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

10.

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

11.

Companies formed under special regulations of the government is called __________________

a)

Statutory Company

b)

Regulated Company

c)

Government Company

d)

Associate Company

12.

Minimum number of directors in a public company is 2

a)

True

b)

False

13.

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

a)

Yes

b)

No

14.

Payment of dividend is prohibited for which type of company?

(a)  

15.

Minimum number of members required to form a public company are

a)

2

b)

5

c)

7

d)

3

16.

In which year present Companies Act comes into force?

a)

1956

b)

2013

c)

2018

d)

2020

17.

Saloman was carried which kind of business?

a)

cloths

b)

Boot

c)

Chocolate

d)

Mobile

18.

The term perpetual succession mean

a)

Going to be die

b)

Never dies

c)

Member operated only

d)

Separate property

19.

Tick all the demerits of a company from the followinig.

a)

Formalities

b)

More tax burden

c)

Limited liability

d)

Possibility of fraud

20.

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

21.

DIN stands for

a)

Director identification number

b)

Directive identification Nil

c)

Decisive information number

d)

Director information numerical

22.

The maximum number of shareholders for public company

a)

200

b)

300

c)

400

d)

Unlimited

23.

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

a)

IT EXIST ONLY IN CONTEMPLATION OF 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

24.

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

a)

2

b)

4

c)

7

d)

9

25.

WHAT IS THE MAXIMUM NUMBER OF MEMBERS REQUIRED FOR FORMATION OF A PRIVATE COMPANY?

a)

100

b)

50

c)

200

d)

250

26.

PERPETUAL SUCCESSION MEANS (a)  

27.

UNDER WHAT BASIS COMANIES ARE CLASSIFIED AS PUBLIC AND RIVATE?

a)

INCORPORATION

b)

LIABILITY

c)

OWNERSHIP

d)

MEMBERSHIP

28.

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

29.

UNDER WHAT BASIS COMPANIES ARE CLASSIFIED AS PUBLIC AND PRIVATE?

a)

INCORPORATION

b)

LIABILITY

c)

OWNERSHIP

d)

MEMBERSHIP

30.

UNDER WHAT BASIS COMPANIES ARE CLASSIFIED AS PUBLIC AND PRIVATE?

a)

INCORPORATION

b)

LIABILITY

c)

OWNERSHIP

d)

MEMBERSHIP

31.

ROC stands for

a)

Regional office certificate

b)

Registrar of Companies

c)

Region of corpus

d)

Register of companies

32.

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

33.

The provisions of the Companies Act, 2013 are applicable to

a)

Private Company only

b)

Public Company Only

c)

Government Company only

d)

All Companies

34.

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

a)

Statutory Company

b)

Government Company

c)

Foreign Company

d)

Chartered Company

35.

When a company is formed for improper conduct or fraud...

a)

Corporate Veil is recognized by court

b)

Corporate Veil is lifted by court

c)

Corporate Veil does not exist

36.

When a company is formed for improper conduct or fraud...

a)

Corporate Veil is recognized by court

b)

Corporate Veil is lifted by court

c)

Corporate Veil does not exist

37.

A company is a contractual entity created by its members

a)

True

b)

False

38.

A company has a distinct personality,however, it is free to do whatever it likes.

a)

True

b)

False

39.

The Registrar shall register any alteration of the memorandum with respect to the objects of

the company and certify the registration within a period of ________ from the date of filing

of the special resolution

a)

30 days

b)

60 days

c)

90 days

d)

120 days

40.

K Ltd. was in the process of incorporation. Promoters of the company signed an agreement for the

purchase of certain furniture for the company and payment was to be made to the suppliers of furniture

by the company after incorporation. The company was incorporated and the furniture was received and

used by it. Shortly after incorporation, the company went into liquidation and the debt could not be

paid by the company for the purchase of the above furniture. As a result supplier sued the promoters of

the company for the recovery of money.

Examine whether promotes can be held liable for the payment under the following situation:

1. When the company has already adopted the contract after incorporation

a)

Promoter is liable

b)

company is liable

c)

Promoter partly liable

41.

Before the incorporation of the company, the promoters of the company entered into an agreement

with Mr. Jainson to buy an immovable property on behalf of the company. After incorporation, the

company refused to buy the said property. Advise Mr. Jainson whether he has any remedy under the

provisions of the Companies Act?

a)

Promoter has a remedy

b)

Mr Jainson has no remedy against the company

c)

Mr Jainson has a remedy against the company

d)

Mr Jainson may hod the promoters responsible

42.

The articles of association of a limited company provided that ‘X’ shall be the law officer of the

company and he shall not be removed except on the ground of proved misconduct. The company

removed him even though he was not guilty of misconduct. Decide, whether company’s action is valid?

a)

The company's action is valid

b)

The company's action is valid and X has no remedy against the company

c)

Memorandum and articles do not bind the members to the outsiders