Company law Mcqs for CSEET Part 2

Q.1:- Which of the following statement about Securities Premium is False?

a) Cannot be treated as free reserves

b) Can be treated a profits

c) To be maintained with same sanctity as share capital

d) To be kept in Securities Premium A/c

Correct Option: B

Q.2:- Appropriation account is also called:

a) Statement of change in owner's equity

b) Statement of change in shareholder 'fund

c) Statement of change in cash flow

d) Statement of change in outsider's fund

Correct Option: A

Q.3:- Preference shares are entitled to vote on every resolution placed before the company at any meeting if the dividend due on such shares are in arrears for a period of ________ or more

a) 4 Years

b) 3 Years

c) 2 Years

d) 1 Years

Correct Option: C

Q.4:- The meeting of all the debenture holders shall be convened by the debenture trustee on:

a) Requisition in writing signed by debenture holders holding at least one-tenth in debentures for the time being outstanding.

b) Requisition in writing signed by debenture holders holding at least ones-fifth in value debentures for the time being outstanding.

c) The happening of any event, which constitutes a breach, default or which in the opinion of the debenture trustees, affects the interest of the debenture holders.

d) A and C

Correct Option: D

Q.5:- Shareholders Section 162 is not applicable to

a) Listed Company

b) Specified IFSC Public company

c) Private company

d) Both B & C

Correct Option: D

Q.6:- It has been provided in the Rules that the provisions relating to debenture trustees, shall not be applicable to the:

a) Public offer of debentures

b) Board of directors

c) Company

d) Debenture holder

Correct Option: A

Q.7:- Voting Rights for 1st year of registration, in case Producer Company is formed by Producer Institutions shallbe:

a) On the basis of Shareholding

b) 1 Institution 1 vote

c) On the basis of Participation in the Business

d) None of the Above

Correct Option: A

Q.8:- Section 71 of the Act enables that a company may issue debentures with an option to convert such debentures into shares,.......... at the time of redemption:

a) Wholly

b) Partly

c) Either wholly or partly

d) None

Correct Option: B

Q.9:- Where __________ resolution is passed, the offer for buy back may remain open for a period less than 15 days

a) Ordinary Resolution

b) Unanimous Resolution

c) Special Resolution

d) Supermajority

Correct Option: B

Q.10:- Letter of Buy Back offer shall be as per the format prescribed in _________

a) SH-8

b) MHT-4

c) PAS-8

d) PAS-4

Correct Option: A

Q.11:- Which of the following shares can be issued at discount?

a) Sweat Equity share

b) Preference share

c) Equity share

d) All of the above

Correct Option: A

Q.12:- Where a company issue shares at a premium, a sum to the equal aggregate amount of the premium received shall be transferred to a:

a) General reserve account

b) Capital reserve account

c) Security premium account

d) Capital redemption reserve account

Correct Option: C

Q.13:- Which of the following is not true: the company repurchase its own shares

a) To return surplus cash to shareholder

b) To reduce cost of capital

c) To manipulate share market prices

d) Shares are under value

Correct Option: C

Q.14:- Which of the following are kinds of share capital?

a) Preference share capital and Equity Share Capital

b) Equity share capital and Bonds

c) Equity share capital and debenture

d) Preference share capital and debenture

Correct Option: A

Q.15:- Share means a share in the share capital of a company and includes:

a) Preference share

b) Stock:

c) Debenture

d) All of the above

Correct Option: B

Q.16:- Which of the following capital is issued at par?

a) Paid Up Capital.

b) Issued Capital

c) Authorized Capital

d) Called up Capital

Correct Option: C

Q.17:- Preference shares are entitled to vote on every resolution placed before the company at any meeting if the dividend due on such shares are in arrears for a period of ________ or more

a) 4 Years

b) 3 Years

c) 2 Years

d) 1 Years

Correct Option: C

Q.18:- A company may issue Bonus shares, out of________

a) Capital redemption reserve A/c

b) Securities Premium A/c

c) Free reserves

d) All of the above

Correct Option: A

Q.19:- A company may issue Bonus shares, out of________

a) Capital redemption reserve A/c

b) Securities Premium A/c

c) Free reserves

d) All of the above

Correct Option: A

Q.20:- The.......measure the amount of the company's net income i.e. theoretically available for payment to the holder of its common stock.

a) DPS Ratio

b) TNW/TOL Ratio

c) EPS Ratio

d) PE Ratio

Correct Option: C

Q.21:- The.......measure the amount of the company's net income i.e. theoretically available for payment to the holder of its common stock.

a) TNW/TOL Ratio

b) DPS Ratio

c) EPS Ratio

d) PE Ratio

Correct Option: C

Q.22:- Any director of a company or any of its key managerial personnel shall be allowed to buy in the company, or in its holding, subsidiary or associate company:

a) A right to call for delivery or a right to make delivery at a specified price and within a specified time, of a specified number of relevant shares or a specified amount of relevant debentures.

b) A right, as he may elect, to call for delivery or to make delivery at a specified price and within a specified time, of a specified number of relevant shares or a specified amount of relevant debentures.

c) Both A & B

d) None of the above

Correct Option: D

Q.23:- Every share certificate shall be in:

a) Form no SH 4

b) Form no SH 3

c) Form no SH 2

d) Form no SH 1

Correct Option: D

Q.24:- Form SH-9 provides for ___________

a) Return of Buy Back

b) Declaration of Solvency

c) Letter of Buy Back

d) Registered of Buy Back

Correct Option: A

Q.25:- A small shareholder's director shall not be liable to retire by rotation:

a) True

b) False

c) May be or may not be

d) None of the above

Correct Option: A