Chapter 7A Elements of Company Law MCQ
1. The term Company derived from the
____________ words
a. English
b. French
c. Latin
d. Indian
2. Section __________ of the Companies Act, 1956
defines the Company
a. 2
b. 3
c. 30
d. 31
3. Private company is defined in :
a. Section 3(1)(iii)
b. Section 2
c. Section 3(1)(ii)
d. None of the above
4. The main characteristics of a company are:
a. Corporate Personality
b. Common Seal
c. Perpetual Succession
d. All of the above
5. Salomon v. Salomon & Co. Ltd. 1897, AC 22
established the principle of:
a. Corporate personality of company
b. Legality of company
c. Nationality of company
d. Meaning of company
6. Company will have fundamental rights:
a. True
b. False
c. Partly true
d. None of the above
7. An association for profit requires ______________
from the Central Government.
a. Registration
b. Licence
c. Certification
d. None of the above
8. The features of a company do not include the
following:
a. It has corporate personality
b. It can sue and be sued
c. It has nationality
d. It is a citizen of the country
9. A company is a:
a. Legal person
b. Juristic person
c. Artificial person
d. Any of the above
10. Lifting the corporate veil means :
a. Ignoring the corporate personality
b. Promoting corporate personality
c. Deciding corporate personality
d. Modifying corporate personality
11. A company may be :
a. Limited by shares
b. Limited by guarantee
c. Unlimited
d. Any of the above
12. A private company is one whose minimum paid up
capital is:
a. Rs 1,00,000
b. Rs 5,00,000
c. Rs 10,00,000
d. Rs 100,00,000
13. A Government company is one where:
a. The Central Government holds 50% shares.
b. The Central and State Government hold 50%
shares.
c. The Central Government holds 51% shares.
d. The Central Government holds more than 50%
14. The following is not a statutory company:
a. Reserve Bank of India
b. Life Insurance Corporation of India
c. Tata Steel Ltd
d. State Bank of India
15. For incorporation of a private company:
a. Minimum 2 persons required
b. Minimum 3 persons required
c. Minimum 5 persons required
d. Minimum 7 persons required
16. Maximum number required for a public company is :
a. 5
b. 10
c. 50
d. None
17. For incorporation of a producer company :
a. Minimum 3 persons required
b. Minimum 5 persons required
c. Minimum 7 persons required
d. Minimum 10 persons required
18. Subsidiary company means a company when
another company holds:
a. 51% shares in that company
b. More than half of the shares of that other
company
c. Controls the Board of Directors of that other
company
d. Both (b) and (c)
19. A company incorporated outside India having a
place of business in India shall file documents with
the Central Government within:
a. 21 days
b. 30 days
c. 45 days
d. 90 days
20. State where the registered office is situated is given
in:
a. MOA
b. AOA
c. Prospectus
d. Any of the above
21. MOA to be signed by the:
a. Subscribers
b. Directors
c. Promotors
d. All of the above
22. MOA should be in form _____________ in
case of company limited by shares
a. Table A
b. Table B
c. Table C
d. Table D
23. MOA should be in form ___________ in
case of company limited by guarantee not having
share capital.
a. Table A
b. Table B
c. Table C
d. Table D
24. MOA should be in form _________ in case
of company limited by guarantee and having share
capital.
a. Table A
b. Table B
c. Table C
d. Table D
25. MOA should be in form ___________ in case of a
unlimited liability
a. Table A
b. Table B
c. Table E
d. None of these
26. E-Form 18 relates to :
a. Incorporation of company
b. Intimation of particulars of Directors
c. Intimation of registered office
d. Filing of miscellaneous documents
27. For incorporation of a company declaration is to be
given by:
a. Power of Attorney Holder
b. Practising Company Secretary
c. Advocate of Supreme Court
d. (b) or (c)
28. Conclusiveness of Certificate of Incorporation is
provided in Section:
a. 3
b. 17
c. 31
d. 35
29. The memorandum of association of the company
contains:
a. The rules regarding the company
b. Charter of the company
c. Procedure of the management of the company
d. None of the above
30. …. Resolution is required to alter MOA.
a. Special
b. Ordinary
c. Two-third majority
d. None of the above
31. The object clause of a company can be changed by
passing resolution:
a. By the Board of Director
b. By shareholders
c. By creditors
d. None of the above
32. Doctrine of ultra vires means :
a. Against the company
b. Outside the objects of the company
c. Illegal business
d. Wrong objects of the company
33. The articles of association of the company contains:
a. The rules regarding the company
b. Charter of the company
c. Procedure for internal management of the
company
d. None of the above
34. Articles is defined in :
a. Section 2(1)
b. Section 2(2)
c. Section 2(3)
d. Section 2(12)
35. Which one of the following is the relation between
the doctrine of constructive notice and indoor
management:
a. Constructive notice is contemporary to indoor
management.
b. Constructive notice is opposite to indoor
management.
c. Constructive notice and indoor management
runs at par.
d. Constructive notice and indoor management are
parallel.
36. Application for registration of a company shall be
made by filing:
a. E-Form 1
b. E-Form 2
c. E-Form 18
d. E-Form 32
37. A company in India is guided by the:
a. Constitution of India
b. Companies Act, 1956
c. SEBI Act, 1992
d. Stock Exchange Regulations
38. _________ conceives the idea of the business.
a. Promoters
b. Directors
c. Auditors
d. None of the above
39. _________ persons required for formation of a
public company.
a. 7
b. 15
c. 21
d. None of the above
40. A private company can start business after
obtaining
a. Certificate of Incorporation
b. Certificate of Commencement
c. Licence from the Central Government
d. All of the above
41. Property of the company belongs to :
a. Company
b. Shareholders
c. Members
d. Promoters
42. Which company shares can be freely transferable:
a. Private Company
b. Public Company
c. Both (a) & (b)
d. None of the above
43. Minimum number of members in case of public
company should be:
a. 1
b. 2
c. 5
d. 7
44. Minimum number of members in case of private
company is:
a. 1
b. 2
c. 3
d. 5
45. Maximum numberof members in case of private
company is:
a. 50
b. 100
c. 150
d. 200
46. Liability of a member in case of a private company
is:
a. Limited
b. Unlimited
c. Both (a) or (b)
d. None of the above
47. XYZ private company had reduced to a single
member and continued business more than 6
months. The company’s liability will be:
a. Limited
b. Unlimited
c. Restricted
d. None of the above
48. Generally rights and obligations of the company are
regulated in:
a. AOA
b. MOA
c. Prospectus
d. None of these
49. Which companies are exempted to add “Ltd.” or
“Pvt. Ltd.” at the end of their name?
a. Private
b. Government
c. Defunct
d. Association not for profits
50. The companies which are formed under special
charter granted by the king or queen of England are
called:
a. Statutory companies
b. Registered companies
c. Chartered companies
d. None of these.
51. The companies which are formed under special Act,
are called as:
a. Chartered companies
b. Statutory companies
c. Registered companies
d. None of these
52. The companies formed under Companies Act, 1956
are called as:
a. Chartered companies
b. Statutory companies
c. Registered companies
d. None of these
53. While calculating maximum limit in case of private
company which of the following will not be included:
a. Employee + Member
b. Member + Employee
c. Member
d. None of these
54. Z Pvt. Ltd. is subsidiary of X Ltd. which is a public
Company? Z Pvt. Ltd. is a :
a. Private Co.
b. PublicCo.
c. Government Co.
d. None of these
55. ________ is the conclusive evidence in case of
company that statutory requirements have complied
with.
a. Certificate of Incorporation
b. Certificate of commencement of Business
c. Both (a) and (b)
d. None of the above
56. Public company Should start business after getting
certificate of:
a. Incorporation
b. Commencement of business
c. Both (a) and (b)
d. None of the above
57. Companies are allotted a _________ by the MCA
on registration
a. PAN
b. SIN
c. PIN
d. CIN
ANSWERS
1 C 31 B
2 B 32 B
3 A 33 A
4 D 34 B
5 A 35 B
6 A 36 A
7 B 37 B
8 D 38 A
9 D 39 A
10 A 40 A
11 D 41 A
12 A 42 B
13 C 43 D
14 C 44 B
15 A 45 A
16 D 46 C
17 D 47 B
18 A 48 B
19 C 49 D
20 A 50 C
21 A 51 B
22 B 52 C
23 C 53 B
24 D 54 B
25 C 55 A
26 D 56 B
27 D 57 D
28 D
29 B
30 A
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