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Business Studies-[Class 11-MCQS ]-Chapter 7 Formation of a Company
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1. Preliminary Contracts are
binding on the Company
binding on the Company, if ratified after incorporation
binding on the Company, after incorporation
not binding on the Company
2. Stages in the formation of a public company are in the following order
Promotion, Commencement of Business, Incorporation, Capital Subscription
Incorporation, Capital Subscription. Commencement of Business, Promotion
Promotion, Incorporation, Capital Subscription, Commencement of Business
Capital Subscription, Promotion, Incorporation, Commencement of Business
3. A proposed name of Company is considered undesirable if
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
4. Minimum number of members to form a public company is
5
7
12
21
5. The company needs to obtain prior permision from central government when it changes the address of its registered office from
one city to another city
with in the same city
one state to another
one country to another country
6. A person cannot hold directorship in more than ____ public companies
3
10
20
7
7. Powers, rights, remuneration, qualification and duties of directors are discussed clearly in
Memorandum of Association
Articles of Association
Prospectus
none of the above
8. ______ means the total amount of called up capital on the shares issued and subscribed by the shareholders on capital account.
Called-up capital
subscribed capital
nominal capital
Paid-up capital
9. _____ share capital has priority both in repayment of dividend as well as capital.
Equity
non preference
Preference
all of the above
10. Par value of shares means the __________ value of the shares
Actual
face
Market
dividend
11. The Prospectus must be issued to the public within ______________ days of its date
30
60
90
100
12. A copy of the ________________ must accompany each from of application for shares offered to the public.
Memorandum of association
Prospectus
Articles of association
None of the above
13. ______ cannot give invitation to the public to subscribe for any shares in or debentures of the company
Subsidiary company
Statutory Company
Private company
Registered company
14. A private company means a company which has a minimum paid up capital of Rs.————
100,000
500,000
5,000,000
none of the above
15. The shares of a _______________ company can be freely transferable
Private ltd
Public ltd
Partnership
all of the above
16. “Men may come and men may go but the company exist”- this explains which characteristics of the company as per companies Act 1956
Separate legal entity
Perpetual Succession
Capacity to sue
None of the above
17. Which of the following clause of Memorandum of Association cannot be altered
Name
Object
situation
liability
18. Which of the following is not a clause of memorandum of association
situation
capital
subscription
directors
19. The company will be considered as separate person and different from its members from the date (when the) __________
start of business
Apply for registration
receive incorporation certificate
mentioned in certificate
20. The certificate of capital will be issued by
Registrar of companies Act
Controller of companies Act.
Registrar of capital issues
controller of capital issues
21. A statement of nominal capital must be given at the time of incorporation by the company when the share capital is less than
50 Lakh
1 crore
10 Lakh
25 Lakh
22. The address of the registered office of the company must be notified to the registrar within _________ days of registration, if it is not done at the time of incorporation
15
30
60
45
23. The application for registration of a company should be presented to the _______________ of the state appointed under Companies Act 1956
Controller
registrar
Governor
registration officer
24. Minimum number of members required to apply for incorporation certificate in a public ltd company is
3
2
7
50
25. Preliminary Contracts are signed
Before the incorporation
After incorporation but before capital subscription
After incorporation but before commencement of business
After commencement of business
26. A prospectus is issued by
A private company
A public company seeking investment from public
A public enterprise
A public company
27. Application for approval of name of a company is to be made to
SEBI
Registrar of Companies
Government of India
Government of the State in which Company is to be registered
28. Minimum number of members to form a private company is
2
3
5
7
29. Private company prohibits any invitation or acceptance of deposits from persons other than its ______
Members
directors
Partners
banks
30. A company is known as the _______company of another company if it has control over that other company.
subsidiary
holding
controlling
statutory
31. For example Par value is Rs10 and it is issued at Rs15 then Rs5 is the ___________ amount
Profit
Market value
dividend
premium
32. __ means the total amount of called up share capital which is actually paid to the company by the members
nominal capital
reserve capital
called up capital
Paid-up capital
33. The dividend payable to ___________ share holders is payable on fixed figure or percent
Equity
non preference
Preference
all of the above
34. _________ capital means the sum mentioned in the capital clause of Memorandum of Association
Full capital
Maximum capital
share capital
Nominal Capital
35. If the company can make arrangements for raising the capital privately so that pubic appeal is unnecessary, the company is required to prepare a _________
Prospectus
statement in lieu of Prospectus
certificate of Prospectus
none of the above
36. A Government Company means any company in which not less than 51% of the paid-up share capital is held by
Central Government
State government
Both a & b
Neither a nor b
37. A private company means a company which has a minimum paid up capital of Rs.———
100,000
500,000
5,000,000
none of the above
38. ___ are the company created by special act of the legislature
Registered company
Public Ltd Company
Private ltd company
Statutory company
39. The liability of the members of the company can be limited by
Share
Guarantee
Both a & b
Neither a nor b
40. When the registered office of a company is changed within a city then it has to be intimated to the registrar within ________ days of such change
60
45
30
7
41. If a company is instructed to change its name which resembles the name of an existing company then the company can change the name by
Passing a special resolution
obtaining permission from central government
Passing an ordinary resolution
Both a & b
42. Number of clauses in Memorandum of Association is
5
6
7
8
43. The articles of association needs to be signed by
all proposed directors
registrar
subscribers of memorandum
none of the above
44. If the proposed nominal capital is more than 25 lakh at the time of incorporation then the company needs to submit __________ along with the application
statement of capital
certificate of incorporation
certificate of capital
certificate of incorporation
45. Among the following which documents are not mandatory to be submitted to the registrar along with incorporation application by a private company.
Address of Registered office & undertaking
Undertaking and statement of capital
statement of capital & list of directors
list of directors and statement of capital
46. Number of documents to be submitted, by a public ltd company, to the registrar while applying for incorporation of the company is
3
2
7
50
47. The application for registration of a company should be presented to the registrar of the state in which the _______________ of the company is to be situated
Manufacturing plant
first branch
business office
any of the above.
48. Section 12 of Companies Act 1956, deals with
Incorporation
Share capital
Number of Directors
Share holders
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