Company Law MCQs Part 4 - CSEET

1. Advantage of incorporated company is

(a) Corporate disclosures (b) Common seal

(c) Capacity to sue (d) Windier up procedure

Answer: C

2. Find the odd one out:-

(a) Private Company (b) Public Company (c) Consumer Company (d) Producer Company

Answer: C

3. Joint shareholders are counted as

(a) Two (b) No limit (c) 50 (d) One

Answer: D

4. Example of company limited by guarantee

(a) Clubs (b) Both (a) & (c) (c) Societies (d) None of the above

Answer: B

5. Which is not a registered company

(a) Company limited by share (b) Company limited by guarantee

(c) Both (a) & (b) (d) None of the above

Answer: D

6. Public company shares are dealt in

(a) Stock exchange (b) Public (c) Market (d) All of the above

Answer: A

7. Is there any limit on borrowings to a Private Company

(a) Limit up to RS 50,000 (b) Limit up to 1 lakh

(C) No limit (d) None

Answer: C

8. Unlimited company may be subsequently converted into limited company

(a) True (b) Partly true (c) False (d) None of the above

Answer: C

9. Non Profit companies are also called

(a) Holding companies (b) Licensed companies

(c) Subsidiary companies (d) Government companies

Answer: .B

10. Government company comes under section

(a) 2(46) (b) 2(44) (c) 2(43) (d) 2(45)

Answer: D

11. Foreign company must issue prospectus

(a) True (b) Partly true (c) False (d) None of these

Answer: A

12. Company's memorandum & articles are public documents

(a) True (b) False (c) Partly True (d) Partly False

Answer: A

13. For incorporation or registration

(a) MOA must be subscribed (b) AOA must be subscribed (c) Only MOA (d) Both (a)&(b)

Answer: D

14. MOA contains of company

(a) Constitutions (b) Regulations (c) Declaration (d) None of these

Answer: A

15. MOA has clauses

(a) 9 (b) 7 (c) 6 I (d) 10

Answer: C

16. AOA is also called as of the company

(a) Regulations (b) Bye Laws (c) Provisions (d) Both (a) or (b)

Answer: D

17. Tables I includes articles of

(a) Unlimited company having share capital

(b) Company limited by guarantee

(c) Company limited by shares

(d) Public company

Answer: A

18. which amongst the following documents is not required to be filed by a foreign company with the Registrar?

(a) Address of the registered office of the company

(b) Address of the principles place of business in India

(c) Declaration of Solvency

(d) Articles of Association

Answer: C

19. Lifting of corporate veil is permitted

(a) By statue (b) Voluntary (c) Any time (d) None of these

Answer: A

20. which one of the following is NOT an essential feature of a company?

(a) Perpetual Succession (b) Unlimited Liability (c) Separate Property (d) Transferability of shares

Answer: B

21. which one of the following statement is not true regarding a company?

(a) The shares of a company can be transferred

(b) lt is very simple and easy to form a company

(c) It is a separate legal entity

(d) It has independence to form its policies

Answer: B

22. Which one of the following is NOT a disadvantage of a company?

(a) It does not has a capacity to sue

(b) It has more social responsibility

(c) Greater tax burden

(d) More disclosures

Answer: A

23. Which of the following statement is NOT true regarding a private company?

(a) It cannot invite public to subscribe to shares or debentures

(b) Restricts the right to transfer its share

(c) At least five members are required to form a company

(d) It should have at least two directors

Answer: C

24. The auditor of a Government company is appointed by

(a) Central Government

(b) Comptroller and Auditor General of India

(c) Directors of the Company

(d) Shareholders of the Company

Answer. B

25. The maximum managerial remuneration which can be paid by a private company is

(a) 11% of net profit (b) 11% of turnover

(c) 5% of share capital (d) None of the above

Answer: D

26. In case of a company limited by shares, the members are liable to the extent of

(a) Nominal value of share

(b) Called up value of shares

(c) They are personally liable

(d) None of the above

Answer: A

27. Which one of the following is not true with reference to an unlimited company?

(a) The liability is extended to their personal property

(b) The members are not liable directly to the creditors of the company

(c) It cannot convert itself into a public company

(d) All of the above

Answer: C

28. A "not for profit" company is permitted as per which section of the Companies Act, 2013?

(a) Sec. 2(i) (iv) (b) Sec. 5 (c) Sec. 8 (d) Sec. 12.

Answer . C

29. The licence to form a company not for profit" is granted by

(a) State Government

(b) Registrar

(c) High Court

(d) Central Government

Answer: . D

30. Government company is defined under which section of the Companies

Act, 2013?

(a) Sec. 2(45) (b) Sec. 2(44) (c) Sec. 2(43) (d) None of the above

Answer: A