Feb 26, 20213 min read

Company law MCQ Basics Part 1

Property of the Company belongs to ------------.

a. Company

b. Shareholders

c. Members

d. Promoters

ANS. a

2. Mr. B, shareholder of A Ltd. used the property of the Company for his personal use, he did not enter into any contract with the Company for such sale, whether the shareholder of the Company can use the property of the Company for their own personal purpose?

a. Yes

b. No

c. Partly Yes

d. Partly No

Ans B

3. The term Company is defined under which section of the Companies Act, 2013?

a. Section 2 (20)

b. Section 2 (10)

c. Section 2 (4)

d. Section 2 (3)

Ans A

4. Minimum number of partners required under Partnership Firm?

a. 2

b. 7

c. 3

d. None of the above

Ans B

5. Partnership firm is separate legal entity from its partners. True or False.

a. True

b. False

c. Partly True

d. Partly False

Ans B

6. How to dissolve Partnership Firm under Partnership Act, 1932?

a. By agreement of partners

b. By mutual consent of partners and by court order

c. By insolvency and by certain contingencies

d. All of the above

Ans D

7. Registration of Partnership Firm is optional. True or False.

a. True

b. False

c. Partly True

d. Partly False

Ans A

8. Mr. K, assessee earned huge income from dividend, he formed 2 private companies and contributed his income as capital against shares of the Company, and he took back all the contributed by him in company as capital by way of pretended loan. Whether assessee is exempted from tax? Or he will be liable for the tax?

a. Liable for the tax

b. Exempted from tax

c. Partly exempted

d. None of the above

Ans A

9. Company registered under Companies Act, 2013 is separate legal entity from its members?

a. Yes

b. No

c. Partly Yes

d. Partly No

Ans A

10. How to dissolve Company under Companies Act, 2013?

a. Voluntary

b. Order of National Company Law Tribunal

c. Either a or b

d. None of the above

Ans C

11. Minimum number of members in case of Public Company?

a. 1

b. 2

c. 5

d. 7

Ans D

12. Minimum number of members in case of Private Company?

a. 1

b. 7

c. 2

d. 4

Ans C

13. Maximum number of members in case of Public Company?

a. 0

b. Unlimited

c. 50

d. 100

Ans B

14 Maximum number of members in case of Private Company?

a. Unlimited

b. 50

c. 200

d. 7

Ans C

15. Which company shares can be freely transferable?

a. Private Company

b. Public Company

c. Both a and b

d. None of the above

Ans B

16. Minimum number of directors in case of a Public Company is-------.

a. 1

b. 2

c. 3

d. 4

Ans C

17. Minimum number of directors in case of a Private company is-------.

a. 1

b. 2

c. 3

d. 4

Ans B

18. Maximum paid up share capital in case of Private Company------------.

a. Rs. 50 Lakhs

b. Rs. 1 Crore

c. Unlimited

d. None of the above

Ans C

19. Maximum paid up share capital in case of Public Company------------.

a. Rs. 50 Lakhs

b. Unlimited

c. Rs. 1 Crore

d. None of the above

Ans B

20. Maximum paid up share capital in case of One Person Company------------

a. Rs. 50 Lakhs

b. Rs. 1 Crore

c. Unlimited

d. None of the above

Ans A

21. Maximum paid up share capital in case Small Company------------.

a. Rs. 50 Lakhs to Rs. 5 Cr.

b. As per Central Govt.

c. Either a or b

d. None of the above

Ans C

22. M/s XYZ, is a Private Limited Company is desirous for inviting the public for subscription of its issue. Can the Company do so?

a. Yes

b. No

c. Partly Yes

d. Partly No

Ans B

23. Which Company is free to invite public for subscription?

a. Public Company

b. Private Company

c. One Person Company

d. Small Company

Ans A

24. Maximum annual turnover in case of One Person Company------------.

a. Rs. 2 Crore

b. 1 Crore

c. Rs. 10 Crore

d. 5 Crore

Ans A

25. The Private Company which is the subsidiary of the Public Company will also be considered as the Public Company under Section 2 (71) of the Companies Act, 2013. True or False.

a. True

b. False

c. Partly True

d. Partly False

Ans A