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Corporate Law - UNIT I

Total questions: 60

Worksheet time: 30mins

Name
Class
Date
1.

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

2.

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

a)

2

b)

4

c)

7

d)

9

3.

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

a)

100

b)

50

c)

200

d)

250

4.

PERPETUAL SUCCESSION MEANS (a)  

5.

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

a)

Incorporation

b)

A franchise

c)

Liquidity

d)

Goodwill

6.

The minimum number of Directors in a Public Company

a)

2

b)

3

c)

10

d)

15

7.

ROC stands for

a)

Regional office certificate

b)

Registrar of Companies

c)

Region of corpus

d)

Register of companies

8.

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

a)

2

b)

4

c)

7

d)

9

9.

Private Company have the right to transfer its shares.

This statement is ..?

a)

True

b)

False

10.

A Private company must have a paid-up share capital of minimum

a)

5 Lakh

b)

1 Lakh

c)

3 Lakh

d)

10 Lakh

11.

A public company has a minimum paid-up share capital of ........... rupees or more

a)

10 Lakh

b)

5 Lakh

c)

15 Lakh

d)

3 Lakh

12.

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

a)

Law

b)

Human Being

c)

Result of an commercial activity

13.

A ___________ is a legal entity which has a separate identity from it shareholders, whose liability for the company’s debts is limited.

a)

Limited liability

b)

Limited company

c)

Partnership

d)

Unlimited liability

14.

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

a)

Memorandum

b)

Articles

c)

Prospectus

d)

Agenda

15.

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

a)

True

b)

False

16.

Doctrine of constructive notice do not affect the company but only the third party

a)

True

b)

False

17.

Doctrine of indoor management safeguards----

a)

Company

b)

Director

c)

Third party

d)

Ignorant stranger

18.

What are the exception to the doctrine of indoor management ?

a)

Knowledge or irregularity

b)

Negligence

c)

Perpetual succession

d)

Limited liability

19.
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. 
20.

Minimum number of members required to form a public company are

a)

2

b)

5

c)

7

d)

3

21.

Private Company have the right to transfer its shares.

This statement is ..?

a)

True

b)

False

22.
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. 
23.

Memorandum of Association contains–

a)

Objective clause

b)

Name clause

c)

Capital clause

d)

All of the above

24.

One of the following is not covered in the Articles of Association

a)

Transfer and Transmission of Shares

b)

Borrowing Powers of Directors

c)

Capital Clause

d)

Meetings

25.

Doctrine of indoor management is also known as

a)

Turquand's rule

b)

Royal British rule

c)

Both of the above

d)

None of the above

26.

Which is the website for registration of the companies?

a)

www.registeringcompanies.com

b)

www.mca.gov.in

c)

www.mca.gov.com

d)

none of the above

27.

The liability of members if company is limited by shares

a)

Unpaid value of shares

b)

Guarantee amount

c)

Unlimited Liability

d)

None of the above amount

28.

______ conceives the idea of the business

a)

Promoters

b)

Directors

c)

Auditors

d)

None of the above

29.

Address of the registered office is situated in

a)

AOA

b)

MOA

c)

Prospectus

d)

None of the above

30.

_______stands in the fiduciary position of the company

a)

Promoters

b)

Directors

c)

Auditors

d)

None of the above

31.

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

a)

Statutory companies

b)

Chartered companies

c)

Registered companies

d)

Government companies

32.

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

a)

Statutory companies

b)

Association for profit

c)

Registered companies

d)

One person company

33.

Which company should not transfer shares?

a)

Private company

b)

Public Company

c)

Government company

d)

Domestic company

34.

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

a)

Statutory Company

b)

Government Company

c)

Foreign Company

d)

Chartered Company

35.

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

36.

Which type of a company is this ?

a)

STATUTORY CO

b)

CHARTERREC CO

c)

CHARTERED CO

d)

NONE

37.

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

a)

True

b)

False

38.

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

a)

Memorandum

b)

Articles

c)

Prospectus

d)

Agenda

39.

To alter the Memorandum , we need approval from

a)

Municipality

b)

Board of Directors

c)

Central Government

d)

State Government

40.

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

a)

with the power

b)

Beyond the power

c)

Directors power

d)

Shareholders power

41.

Can an ultra vires Act be ratified?

a)

Yes

b)

No

42.

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

a)

Memorandum

b)

Articles

c)

Certificate of incorporation

d)

Minutes

43.

The main provisions regarding the AOA are found in Secs. ----of the Act

a)

5,6 and 7

b)

5,8 and 10

c)

5,10 and 14

d)

10,14,15

44.

Table A in schedule I of the Act explains about AOA

a)

True

b)

False

45.

To ratify AOA -------resolution is needed

a)

General

b)

Special

c)

quorum

d)

Minutes

46.

MOA is a ----------------------------document

a)

Principal

b)

Secondary

c)

Optional

d)

Computer

47.

Articles of Association is subordinate to --------

a)

Company Law

b)

Central Government

c)

Memorandum

d)

Prospectus

48.

Doctrine of constructive notice do not affect the company but only the third party

a)

True

b)

False

49.

Doctrine of constructive notice is a

a)

Positive doctrine

b)

Negative doctrine

50.

Doctrine of indoor management safeguards----

a)

Company

b)

Director

c)

Third party

d)

Ignorant stranger

51.

What are the exception to the doctrine of indoor management ?

a)

Knowledge or irregularity

b)

Negligence

c)

Perpetual succession

d)

Limited liability

52.

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

a)

Private company

b)

Public company

c)

Investment company

d)

Government company

53.

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

a)

Charitable companies

b)

Non- Trading company

c)

All of the above

54.

Property of the company belongs to

a)

Shareholders

b)

company

c)

members

d)

promoters

55.

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

a)

Private company

b)

Public Company

c)

Guarantee company

d)

Listed company

56.

Which is not a characteristics of a company?

a)

Legal personality

b)

Limited liability

c)

Perpetual succession

d)

No common seal

57.
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. 
58.

A company with one director and one shareholder is called ____________

a)

OCP

b)

OPC

c)

CSR

d)

OPP

59.

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

60.

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

a)

Yes

b)

No