Company law MCQs for CA/CS Part 3

1. The company can take away ownership from management?

a. Yes b. No c. Partly Yes d. Partly No

2. The investor need not enter in to day to day transaction of the Company or management of the Company. True or false.

a. True b. False c. Partly True d.Can’t say

3. The Company is an artificial judicial person, it is not a natural person. True or False.

a. True b. False c. Partly True d. Can’t say

4. The Company has to right to enter into contract on its own name. True or False

a. True b. False c. Partly True d. Partly False

5. The term Public Company is defined under which Section of the Companies Act, 2013?

a. Section 2 (71) b. Section 2 (10) c. Section 2 (4) d. Section 2 (3)

6. Everything which is done in the company will be known by the name of the company?

a. Yes b. No c. Partly Yes d. Partly No

7. Which Company do not have capital clause?

a. Limited by shares b. Limited by Guarantee c. Both a and b d. None of the above

8. There can be a transfer of property from a company to the & vice- versa.

a. Member b. Employee c. Promoter d. None of the above

9. The Limited company have subtypes namely ------------

a. Company limited by shares

b. Company limited by Guarantee

c .Company limited by shares as well as Guarantee

d. All of above

10. A person can be a member, director, employee and creditor of the company same time?

a. Yes b. No c. Partly Yes d. Partly No

11. Mr. A is a director of the ABC Limited, he wants to hold secured debentures from company. Can he do1so?

a. Yes b. No c. Partly Yes d. Partly No

12. A company is not an agent of members or directors. True or False.

a. True b. False c. Partly True d. Can’t say

13. Mr. Kiran is a director and employee of the KBC Limited, he wants to purchase the equity shares of the company. Whether he can do so?

a. Yes b. No c. Partly Yes d. Partly No

14. M. K is an engineer, formed manufacturing company. The name of the company is KE Ltd. Mr. K was also an employee having a contract of compensation with KE Ltd. in case of damage to him or his life. At one day he met with accident during testing of machine and he died, whether wife of the K can receive the compensation from the company?

a. Yes b. No c. Partly Yes d. Partly No

15. Shares of listed companies are freely tradable. True or False.

a. True b. False c. Partly True d. Partly False

16. Shares of unlisted companies are not freely tradable. True or False.

a. True b. False c. Partly True d. Partly False

17. An is a company whose main business is holding securities for investment purpose.

a. Banking Company b. Producer Company c. Investment Company d. Financial Company

18. The Company by its main object in its MOA involved in primary production stated in Section 581 B of1Company Act, 1956 is a …………..

a. Banking Company b. Producer Company c. Investment Company d. Financial Company

19. Section 8 of the Companies Act, 2013 deals with which type of company -------

a. Banking Company b. Investment Company c. Financial Company d. Non Profit Company

20. Main object of Non Profit Company

a.Promote art, commerce, science b. Social welfare c. Protection of environment d. All of above

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

a. Section 2 (71) b. Section 2 (85) c. Section 2 (4) d. Section 2 (68)

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

a. Section 2 (71) b. Section 2 (62) c. Section 2 (85) d. Section 2 (68)

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

a. Section 2 (71) b. Section 2 (62) c. Section 2 (85) d. Section 2 (68)

24. Which types of resolutions passed in General Meeting?

a. Ordinary b. Special c. Unanimous d.All of the above

25. Creditors Meeting are not normally conducted in the company on very special cases like--------------

a. Winding Up of the Company b. Amalgamation, Merger and Reconstruction of the

Company c. Reduction of capital and changes in Object clause of MOA d. All of the above

Answers

1. a ( Hint: As per Section 9 of Companies Act, 2013, the Company is combination of separate 3 pillar i.e. Investor, Management and Auditor. Investor invest the money which is used by management to run

business and auditor checked whether money is being properly used or not)

2. a ( Hint: As per Section 9 of Companies Act, 2013, the Company is combination of separate 3 pillar i.e. Investor, Management and Auditor. Investor invest the money which is used by management to run

business and auditor checked whether money is being properly used or not )

3. a( Hint: As per Section 9 of Companies Act, 2013, Company is created by human, it’s not natural)

4. a

5. a

6. a

7. b

8. a

9. d

10. a ( Hint: A person can be a member, director, employee and creditor of the company at the same time)

11. a ( Hint: A person can be a member, director, employee and creditor of the company at the same time)

12. a

13. a ( Hint: A person can be a member, director, employee and creditor of the company at the same time)

14. a ( Hint: There was valid contract between the company and Mr. K)

15. a

16. a

17. c

18. b

19. d

20. d

21. d

22. d

23. c

24. d

25. d