Deck 1: Understanding Company Law: Definitions, Regulations, and Operations

Question 1

---------------------- is a voluntary association of persons formed to carry on some business for profit or to promote art, science, education or some charitable purpose.

A)Incorporation
B)Private company
C)Company
D)Public company

Answer 1

Company

Question 2

----------------------- is a legal person which capable of perpetual succession and common seal

A)Company
B)Firm
C)Voluntary Association
D)Partnership.

Answer 2

Company

Question 3

See ----------------- of the companies Act, 1956 states that a company means " a company formed and registered under this Act, or an existing company"

A)3(2)(ii)
B)3(1)(ii)
C)3(3)(i)
D)3(1)(i)

Answer 3

3(1)(i)

Question 4

A company is a ------------------ of a person who have come together for a common object which generally is to earn profit

A)Artificial person
B)Voluntary Association
C)Incorporate Association
D)All of these.

Question 5

Anything done under an agreement between the company and third party requires recognition of the company in the form of --------------------

A)Contract
B)Agreement
C)Partnership
D)Official seal

Question 6

A company is a ------------------- person

A)Distinct person
B)Group
C)Legal
D)Association

Question 7

A company is the creation of ---------------------

A)Common seal
B)Law
C)Share capital
D)Members

Question 8

Minimum ------------------- and maximum --------------------- constitute a private limited company

A)2 of 10
B)7 of unlimited
C)2 of 15
D)2 of 50

Question 9

Mean any premises including precincts thereof

A)Industry
B)Factory
C)Company
D)Workmen

Question 10

Minimum ------------------- persons to constitute a public limited company.

A)7
B)10
C)2
D)5

Question 11

Accounts of a company must be audited by an ---------------------

A)Chartered Accountant
B)Auditor
C)Board of Directors
D)All of these.

Question 12

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

Question 13

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

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

Question 14

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

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

Question 15

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

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

Question 16

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

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

Question 17

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.1,50,000

Question 18

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 19

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 20

Shares can be freely transferable in -----------------

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

Question 21

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)None of the above.

Question 22

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 fund is noticed
C)When the company tries to avoid certain legal obligation
D)All of the above.

Question 23

The memorandum of Association is a ------------------- of the company.

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

Question 24

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 25

The shorter versions of a prospectus is also known as ---------------

A)Deemed prospectus
B)Incomplete prospectus
C)Abridged prospectus
D)Red Herring Prospectus