Deck 9: Company Law and Incorporation

Question 1

The winding up of the company can only be done by the process of ___________

A)dissolution of partnership
B)General meeting
C)Law
D)Management

Answer 1

Law

Question 2

________ company are those which are incorporated by a Royal Charter.

A)Chartered
B)Registered
C)Statutory
D)None of these

Answer 2

Chartered

Question 3

Statutory companies are those incorporated under a special act passed by __________

A)Companies Act
B)Parliament
C)Special resolution
D)Law

Answer 3

Parliament

Question 4

__________ Company may be companies limited by shares companies limited by guarantee, unlimited companies.

A)Number of member
B)Liability of members
C)Registered
D)Incorporation

Question 5

Companies limited by ________ are not formed for the purpose of profit but for the promotion of art science, culture, charity, sports, commerce etc.

A)Member
B)Shares
C)Liability
D)Guarantee

Question 6

Private company means a company which has a minimum paid up capital of ____________

A)Rs. 2,00,000
B)Rs. 5,00,000
C)Rs. 1,00,000
D)Rs. 1,00,000.

Question 7

A public company has been defined in Sec._________

A)3 (1) (iv)
B)3 (1) (i)
C)3 (1) (iii)
D)3 (1) (ii)

Question 8

Public company means a company which has a minimum paid up capital of Rs. __________

A)2,00,000
B)3,00,000
C)5,00,000
D)1,00,000

Question 9

Shares can be freely transferable in ________

A)Public Company
B)Private Company
C)Registered company
D)Government company

Question 10

The common seal of the company is the _____________

A)Official signature of the company
B)Rights of the company
C)General view of the company
D)Name of the above

Question 11

During which of the following circumstances can the veil be lifted by the court?

A)Where the Co acts as an agent
B)Where a fraud is noticed
C)When the company tries to avoid certain legal obligations.
D)All of the above.

Question 12

The memorandum of Association is a __________of the company.

A)Certificate
B)Schedule
C)Document
D)None of the above

Question 13

If the Articles of a company conflict with the memorandum.

A)The articles shall prevail
B)The memorandum shall prevail
C)The directors will resolve the conflict
D)The court will resolve the conflict

Question 14

On a share of Rs. 200 of a company a shares holder has already paid Rs. 150. His liabilitye is now limited to:-

A)200
B)50
C)150
D)0

Question 15

__________ refers to a voluntary association of individuals formed for the purpose of obtaining a particular social or economical goal.

A)Illegal Association
B)Partnership
C)Incorporation
D)Company

Question 16

A ___________ is a document but invites the public to subscribe for share and debentures.

A)Memorandum
B)Articles
C)Prospectus
D)Certificate

Question 17

The _________ issues the certificate of incorporation.

A)Register
B)Director
C)Court
D)All of the above

Question 18

Corporate veil ensures ________ to the company.

A)Protection
B)Legal Immunity
C)Both a and b
D)None of the above

Question 19

The articles of Association and the memorandum of Association are drafted by __________

A)Auditor
B)Director
C)Secretary
D)Registrar

Question 20

Doctrine of Ultra vires has reference to __________clause

A)Object
B)Subscription
C)Liability
D)None of the above

Question 21

Which doctrine protects the out of the outsiders from the company?

A)The Doctrine of Ultra vires
B)The Doctrine of indoor management
C)Both a and b
D)None of the above

Question 22

Which Doctrine seeks to protect the company from the outsiders?

A)The Doctrine of indoor Management
B)The Doctrine of Ultravires
C)The Doctrine of constructive notice
D)None of the above

Question 23

Sec ___________ of the companies Act deals with the meaning and provisions related to the shelf prospectus.

A)50
B)4 (1)
C)2 (2)
D)60

Question 24

Sec ______________ of the companies Act states that, a public company making an issue of securities shall circulate information memorandum to the public before filling of a prospectus.

A)60 (B)
B)60 (A)
C)16 (B)
D)16 (A)

Question 25

The person or group of person who being a company into existence are called __________

A)A firm
B)Incorporation
C)Promoters
D)Promotion