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Company Law

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

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

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)

Government company

d)

Foreign company

5.

Which company should not transfer shares?

a)

Private company

b)

Public Company

c)

Government company

d)

Domestic company

6.

What does 'Limited Liability by Shares' principle mean ?

a)

liability of shareholder's are unlimited

b)

liability of shareholder's are limited to the re sale value of shares they have in the company

c)

liability of shareholder's are limited to the extent of the nominal value of shares in the company

d)

share holder's have no liability for company's losses

7.

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

a)

Private company

b)

Public company

c)

Investment company

d)

Government company

8.

What does 'Limited Liability by Shares' principle mean ?

a)

liability of shareholder's are unlimited

b)

liability of shareholder's are limited to the re sale value of shares they have in the company

c)

liability of shareholder's are limited to the extent of the nominal value of shares in the company

d)

share holder's have no liability for company's losses

9.

A public company can be defined 'as a company, other than a private company', which must be listed in the stock exchange and must have more than fifty shareholders.

a)

True

b)

False

10.

According to the rule in Turquand's case, a company is prohibited from dealing in its own shares.

a)

True

b)

False