WorksheetsCOMPANY LAW 2B MCQ
Total questions: 28
Worksheet time: 14mins
Name
Class
Date
1.
NAME
4 lines
2.
REGISTER NO
4 lines
3.
Which of the following is NOT a kind of company?
a)
A. Private company
b)
B. Public company
c)
C. Government company
d)
D. Sole proprietorship
4.
Which document defines the scope and objects of a company?
a)
A. Articles of Association
b)
B. Prospectus
c)
C. Memorandum of Association
d)
D. Certificate of Incorporation
5.
Articles of Association mainly regulate:
a)
A. External management
b)
B. Internal administration
c)
C. Company objects
d)
D. Capital structure
6.
Which document is conclusive proof of the existence of a company?
a)
A. MOA
b)
B. AOA
c)
C. Certificate of Incorporation
d)
D. Prospectus
7.
A promoter is a person who:
a)
A. Manages daily business
b)
B. Conceives and forms a company
c)
C. Audits company accounts
d)
D. Acts as company secretary
8.
The legal position of a promoter is that of a:
a)
A. Trustee
b)
B. Agent
c)
C. Fiduciary
d)
D. Servant
9.
Which is NOT an effect of incorporation?
a)
A. Separate legal entity
b)
B. Perpetual succession
c)
C. Unlimited liability
d)
D. Limited liability
10.
Alteration of MOA requires:
a)
A. Board resolution
b)
B. Ordinary resolution
c)
C. Special resolution
d)
D. Registrar approval only
11.
Corporate veil is lifted mainly to prevent:
a)
A. Business loss
b)
B. Fraud
c)
C. Competition
d)
D. Expansion
12.
A company is incorporated only to evade income tax. The court will:
a)
A. Allow tax planning
b)
B. Ignore company identity
c)
C. Grant immunity
d)
D. Winding up only
13.
Promoter makes secret profit and shareholders discover it. Remedy is:
a)
A. Ignore profit
b)
B. Recover profit
c)
C. Cancel incorporation
d)
D. Remove directors
14.
The principle allowing court to see real persons behind company is:
a)
A. Separate legal entity
b)
B. Ultra vires
c)
C. Lifting of corporate veil
d)
D. Indoor management
15.
Name clause alteration requires approval of:
a)
A. Shareholders only
b)
B. Registrar only
c)
C. Central Government
d)
D. SEBI
16.
A company is best described as:
a)
A. A natural person created by contract
b)
B. An artificial legal person created by law
c)
C. A group of partners
d)
D. A government authority
17.
Which of the following is NOT a stage in the formation of a company?
a)
A. Promotion
b)
B. Incorporation
c)
C. Commencement of business
d)
D. Liquidation
18.
Form INC-8 is a declaration given by:
a)
A. Directors of the company
b)
B. Shareholders of the company
c)
C. Registrar of Companies
d)
D. A professional like CA, CS, CMA or Advocate
19.
SPICe+ Part A is used for:
a)
A. DIN allotment
b)
B. Incorporation details
c)
C. Reservation of company name
d)
D. PAN and TAN allotment
20.
Form INC-22 is filed for:
a)
A. Appointment of directors
b)
B. Declaration of commencement of business
c)
C. Alteration of MOA
d)
D. Intimation of registered office address
21.
BC Pvt. Ltd. restricts the transfer of shares and limits the number of members to 200.
ABC Pvt. Ltd. is a:
a)
A. Public company
b)
B. Private company
c)
C. OPC
d)
D. Section 8 company
22.
On receiving the Certificate of Incorporation, DEF Ltd. started entering into contracts in its own name.
Which legal effect of incorporation allows this?
a)
A. Limited liability
b)
B. Separate legal personality
c)
C. Perpetual succession
d)
D. Common seal
23.
While incorporating a company, the promoters filed MOA, AOA, INC-8, DIR-2, and INC-22.
Which of the following documents contains the consent of directors?
a)
A. INC-8
b)
B. DIR-2
c)
C. INC-22
d)
D. SPICe+
24.
The minimum number of members required to form a public company is:
a)
A. 1
b)
B. 2
c)
C. 5
d)
D. 7
25.
Which authority regulates the incorporation and compliance of companies in India?
a)
A. SEBI
b)
B. RBI
c)
C. Registrar of Companies (ROC)
d)
D. Ministry of Finance
26.
A company is said to come into existence from:
a)
A. Date of approval of name by ROC
b)
B. Date of filing MOA and AOA
c)
C. Date mentioned in the Certificate of Incorporation
d)
D. Date of commencement of business
27.
Which document determines the outer limit of company’s powers?
a)
A. Articles of Association
b)
B. Memorandum of Association
c)
C. Prospectus
d)
D. Share Certificate
28.
Who is a promoter under Section 2(69) of the Companies Act, 2013?
a)
A. Person named as promoter in prospectus
b)
B. Person having control over company affairs
c)
C. Person on whose advice directors act
d)
D. All of the above
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