Worksheets11P-BST-CH:7
Total questions: 20
Worksheet time: 10mins
A company cannot come into existence without:
Issuing a prospectus
Getting certificate of incorporation
Electing Directors
All of these
It is necessary to get every company incorporated, whether private or public.
True
False
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
Application for approval of name of a company is to be made to------------------------------
Government of the State in which Company is to be registered
Registrar of Companies
SEBI
Government of India
Minimum number of members to form a public company is-----
5
7
12
21
Minimum number of members to form a private company is------------
2
3
5
7
What are the four stages of formation of company?
Promotion, Capital subscription, Incorporation and loan for business
Commencement of business, Hire employees, Incorporation and Name approval
Promotion, Incorporation, Capital subscription and Commencement of Business
Hire employees, Loan for Business, Filing of necessary documents, Commencement of Business
A company's name cannot be identical to an existing company, corporation or business
True
False
The consequence of a promoter’s fiduciary duty is ........
the promoter must make full disclosure of his personal interest in the promotion process; and accordingly the promoter must disclose whether he obtained a profit as a result of the promotion of the company concerned.
the promoter must only make partial disclosure of his personal interest in the promotion process; and accordingly the promoter does not need to disclose if he does not want to.
the promoter has a choice whether to disclose to the company; and accordingly if the promoter choose not to he does not need to disclose the profit obtained as a result of the promotion.
the promoter must make full disclosure of his personal interest in the promotion process but does not need to disclosure how he obtained the profit.
Fiduciary duties imposed upon a promoter are owed only to the .............
shareholder
company
creditors
investors
A promoter is a person who ............
creates a separate legal entity
does marketing for the company
sues the company in contract
is a party to preparation of the prospectus of a company
A company can come into existence without a promoter.
True
False
Which of the following company can not invite people to invest in their shares ?
Partnership
Public Limited
Private Limited
Non of these
What is the simple difference between a public and private limited company?
A public limited company is public and a private limited company is private.
There are no differences.
The public limited company can quote shares in a stock exchange while a private limited company cannot.
One does not deal with shares while the other does.
What is are some characteristics of a public limited company?
A name, unlimited liabilities, perpetual succession
A name, limited liabilities, perpetual succession and a common seal
A single person, shares, advertisements
A member, a location, one employee
Who are the main managers/owners of a public limited company called?
Owners and managers
Bosses and mentors
Directors and shareholders
Principals and boards
Stages in the formation of a public company are in the following order:
Promotion, Commencement
of Business, Capital
Subscription, Incorporation,
Incorporation, Capital
Subscription, Promotion
Promotion, Incorporation,
Capital Subscription, Commencement
Capital Subscription,
Promotion, Incorporation,
Memorandum of Association
defines the _____________ for which
the company is formed.
Objectives
Rules
Job responsibilities
Plan
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.
