Deck 5: Company Law and Corporate Entities

Question 1

Company registered under Sec. 8 as per 2013 amendment can _________

A)Manufacturing
B)give services
C)not earn profits
D)Limit Shares

Answer 1

not earn profits

Question 2

Company act 2013 have __________ number of sections

A)236
B)56
C)470
D)536

Answer 2

470

Question 3

Theory which gives explanation to 'lifting the corporate Veil" is _______

A)Concession theory
B)Bracket Theory
C)Fiction theory
D)Feminist theory

Answer 3

Bracket Theory

Question 4

Corporate is person ficta 'fictitious person' _______________

A)Concession theory
B)Bracket Theory
C)Fiction theory
D)Feminist theory

Question 5

Public limited company paid up capital share is Rupees ______________

A)50,000
B)5,00,000
C)1,00,000
D)1,50,000

Question 6

Memorandum of Association has ________ clause

A)7
B)10
C)12
D)14

Question 7

Registered address of the company can be reported to registrar maximum within ____________ days.

A)5
B)30
C)100
D)365

Question 8

Retrospective correction can be done, even after execution of action in

A)Article of Association,
B)Memorandum of Association
C)Prospectus,
D)Interpretation of Statue

Question 9

Company is defined under ____________

A)S.3 (1) (i)
B)S.4
C)S.5
D)S.6

Question 10

Company registered under Company Law is _________

A)Legal Company
B)Registered Company
C)Chartered Company
D)LLP

Question 11

Private Company is defined under __________

A)S.3 (1) (iii)
B)S.3 (1) (iv)
C)S.4
D)S.4 (2)

Question 12

Private Company restricts the number of its members up to _________

A)Two
B)Ten
C)20
D)50

Question 13

Which one of the following statements is true __________

A)Any person can become the member of the company.
B)Incorporated Company is a legal person and a citizen also.
C)Debenture holders do not have the right to vote.
D)All are false.

Question 14

Government Company is defined under ________

A)S.571
B)S.617
C)S.619
D)S.620

Question 15

Which one of these cases, it was decided that a company incorporated by a single person can also have a separate legal entity ________

A)Solomon v/s. Solomon & Co.
B)Ashbury Railway carriage Co. v/s. Riche.
C)Foster v/s. Foster.
D)Carriage and Iron Co. Ltd v/s. Rich.

Question 16

Which one of these cases, is not related to separate entity of the company ____

A)Oax v/s. Turquand and Harding.
B)Solomon v/s. Solomon & Co.
C)In Re Kandoli Tea Co.
D)Southern Foundaries Ltd. v/s. Shirla.

Question 17

In which one of these cases, the doctrine of ultra vires was laid down ________

A)Ashbury Railway Carriage & Iron Co. Ltd. v/s. Riche.
B)Royal British Bank v/s. Turquand.
C)Derry v/s. Peek
D)Oax v/s. Turquand and Harding.

Question 18

The doctrine which says company is collective will and has its real psychic existence is based on __________

A)Fiction Theory.
B)Realist Theory.
C)Bracket Theory.
D)Purpose Theory.

Question 19

If direction to change the name of the company is given by the Central Government, the Company must change its name within ______________

A)One month
B)Two months
C)Three months
D)Six months

Question 20

Which of the firm must not have Articles of Association? _______________

A)Unlimited Companies,
B)Companies limited by guarantee
C)Private companies limited by shares must have Articles of Association.
D)LLP

Question 21

The doctrine of Indoor Management seeks to protect _____________

A)Outsiders against the company.
B)Sanctioned by the Registrar of the companies.
C)Authorised by Board of Directors.
D)Allowed by Memorandum of Association.

Question 22

The rule of constructive notice seeks to protect_____________

A)The company against the outsiders.
B)Shareholders against the company.
C)Outsiders against the company.
D)Directors against the outsiders.

Question 23

The Prospectus must be issued within ______________

A)90 days of its registration.
B)60 days of the Certificate of Incorporation.
C)90 days of the Statutory Meeting.
D)60 days of the first Annual General Meeting.

Question 24

Every person who knowingly issues a Prospectus without registration, is punishable _______________

A)With fine upto Rs.5000/-
B)With fine upto Rs.2000/-
C)With fine upto Rs.1000/-
D)With fine upto Rs.1000/- and imprisonment upto one month.

Question 25

In case of every company, a meeting of the Board of Directors shall be held at least____________

A)Once a month.
B)Once in every two months.
C)Once in every three months.
D)Once a year.