wayground logo

Free Printable Worksheets

NEW

Font size

S
M
L
XL
Worksheets

Company Law

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

1. The doctrine which advocates the fact that company cannot act beyond the scope of its memorandum of association is:

a)

Doctrine of constructive notice

b)

Doctrine of indoor management

c)

  Doctrine of ultra vires

d)

Doctrine of intra vires

2.

2. The most important document of a company is

a)

Annual Report

b)

Balance Sheet

c)

Prospectus

d)

Memorandum of Association

3.

3. Under the Companies Act, 2013, “Significant influence” constitutes how much % of total share capital or of business decisions under an agreement?

a)

At least 2%

b)

  At least 5%

c)

At least 10%

d)

At least 20%

4.

4. Which one of the following is not the content of the Memorandum of Association?

a)

Name clause

b)

Registered office clause

c)

Objects clause

d)

Board of Directors clause

5.

5. Sum stated in the memorandum as the capital of the company with which it is to be registered being the maximum amount which it is authorised to raise by issuing shares

a)

Called Up

b)

Paid up

c)

Nominal

d)

Subscribed

6.

6. Nimi Ltd. was a confectionaries manufacturing company which has 7 members and all of them died in an aircraft. Despite this, the company still exists unlike partnership form of business. Which feature of a company is involved in this case?

a)

Common Seal

b)

Artificial Legal (Judicial) Person

c)

Separate Legal Entity

d)

Perpetual Succession

7.

7. Which theory is involved in the famous case law of Salomon Vs. Salomon and Co Ltd.?

a)

Lifting of Corporate Veil

b)

Formation of subsidiaries to act as agents

c)

Company formed for fraud / improper conduct or to defeat law

d)

Corporate Veil

8.

8. Ziva Limited purchased shares of Zanjeer Limited by investing a sum of Rs. 6,50,000. The dividend in respect of these shares was shown in the profit and loss account of the company, year after year and was also accounted for the purpose of calculating the bonus payable to workmen of the company. Ziva Ltd. transferred the shares of Zanjeer Limited, to ZZ Limited a subsidiary, wholly owned by it. Thus,the dividend income did not find place in the Profit & Loss Account of A Ltd., with the result that the surplus available for the purpose for payment of bonus to the workmen got reduced. Here a company created a subsidiary and transferred to it, its investment holdings in a bid to reduce its liability to pay bonus to its workers.

a)

To avoid a legal obligation

b)

To determine the character of the company i.e. to find out whether co-enemy or friend

c)

To protect revenue/tax

d)

Company formed for fraud/improper conduct or to defeat law

9.

9.     _____________ has been introduced to encourage entrepreneurship and corporatization of business.

a)

  Private company

b)

One person company

c)

Not for profit company

d)

    Small company

10.

10. Small company means a company, other than a public company, having paid-up share capital of which

a)

Does not exceed fifty lakh rupees

b)

Does not exceed hundred lakh rupees

c)

Exceeds fifty lakh rupees

d)

Does not exceed ten lakh rupees