Business Law Online MCQ Set 12

QN01. ______________ are the true owners of the company.

  1. Members
  2. Investors
  3. Directors
  4. Share holders
Answer

(D)Share holders

QN02. Which of the following documents is submitted by the board of directors at every AGM______________?

  1. Balance sheet
  2. Profit and Loss Account
  3. Both A and B
  4. None of the above
Answer

(C)Both A and B

QN03. ______________ guarantees its established quality

  1. Patent
  2. Goods
  3. Trade mark
  4. Safety
Answer

(C)Trade mark

QN04. Where a directors acts dishonestly to the interest of the company. He will be held liable for ______________

  1. Negligence
  2. Malafide acts
  3. Ultra virus acts
  4. Breach of fiduciary duty
Answer

(D)Breach of fiduciary duty

QN05. An act which is to be ultra virus a company is ______________

  1. Void
  2. Valid
  3. Both A and B
  4. None of these.
Answer

(A)Void

QN06. Shelf prospects relates under Sec. ______________

  1. 16 A
  2. 14 A
  3. 60 A
  4. 40 A
Answer

(C)60 A

QN07. An official liquidator is appointed by the ______________

  1. Central government
  2. By Court
  3. State Government
  4. Company
Answer

(A)Central government

QN08. As per Sec. 439 who can file a petition to the Tribunal for winding up?

  1. The Registrar
  2. Company
  3. Contributory
  4. Any one of these.
Answer

(D)Any one of these.

QN09. ______________ is a legal person which capable of perpetual succession and common seal

  1. Company
  2. Firm
  3. Voluntary Association
  4. Partnership.
Answer

(A)Company

QN10. Minimum ______________ and maximum ______________ constitute a private limited company

  1. 2 of 10
  2. 7 of unlimited
  3. 2 of 15
  4. 2 of 50
Answer

(D)2 of 50

QN11. ______________ Company may be companies limited by shares companies limited guarantee, unlimited companies.

  1. Number of members
  2. Liability of members
  3. Registered
  4. Incorporation
Answer

(B)Liability of members

QN12. The common seal of the company is the ______________

  1. Official signature of the company
  2. Rights of the company
  3. General view of the company
  4. None of the above.
Answer

(A)Official signature of the company

QN13. ______________ refers to a voluntary association of individuals formed for the purpose of obtaining a particular social or economical goal.

  1. Illegal Association
  2. Partnership
  3. Incorporation
  4. Company
Answer

(D)Company

QN14. Corporate veil ensures ______________ of the company

  1. Protection
  2. Legal Immunity
  3. Both A and B
  4. None of the above.
Answer

(B)Legal Immunity

QN15. 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.

  1. 60(B)
  2. 60(a)
  3. 16(B)
  4. 16(a)
Answer

(A)60(B)

QN16. A printed copy articles as altered shall be filed by the company with the register within ______________ of order of approval from central

  1. 3 months
  2. 6 months
  3. One month
  4. 2 month
Answer

(C)One month

QN17. A company is said to be incorporated when it is registered with registrar of the ______________ company

  1. Licensing
  2. Government
  3. Existing
  4. Joint stock
Answer

(D)Joint stock

QN18. Prospectus must therefore make full and honest declaration of materials facts without concealing or omitting any relevant fact. This is known as ______________

  1. Twiquant rule
  2. Golden rule
  3. General rule
  4. Special rule
Answer

(B)Golden rule

QN19. ______________ Acts as the official signature of the company.

  1. Registration
  2. Special resolution
  3. Legal entity
  4. Common seal
Answer

(D)Common seal

QN20. In case of a company limited by guarantee, the liability of the members can be enforced

  1. Only at the time of winding up of the company
  2. At any time when the company so decide
  3. Only by an order of court
  4. Only by an order of Registrar of companies
Answer

(A)Only at the time of winding up of the company

QN21. ______________ describes the scope of company activities

  1. Memorandum of association
  2. Prospectus
  3. Articles of Association
  4. Documents
Answer

(A)Memorandum of association

QN22. ______________ signed by the required number of persons which are necessary for the formation of company.

  1. Memorandum of Association
  2. Prospectus
  3. Statement in lieu
  4. None of the above.
Answer

(B)Prospectus

QN23. Registered Office clause of memorandum of Association contain ______________

  1. The complete postal address
  2. The name of Registrar of companies
  3. The name of City/ Town only and not that of the state
  4. The name of the state in which registered office of the company is to situate
Answer

(D)The name of the state in which registered office of the company is to situate

QN24. ______________ lays down the objects and powers of the company.

  1. Memorandum of Association
  2. Articles of Association
  3. Prospectus
  4. Statement in lieu
Answer

(A)Memorandum of Association

QN25. Offers may be invited from the public by issuing a document known as ______________

  1. Prospectus
  2. Notice
  3. Circular
  4. All of the above
Answer

(A)Prospectus

QN26. The office of a director becomes vacant if he fails to obtain his qualification shares within ______________

  1. 30 days
  2. 1 month
  3. 2 months
  4. 3 month
Answer

(C)2 months

QN27. ______________ Member of directors need to retire every year

  1. 2/3
  2. 2
  3. ¼
  4. 1/3
Answer

(D)1/3

QN28. Minimum number of directors in public company is ______________

  1. 3
  2. 2
  3. 4
  4. 1
Answer

(A)3

QN29. The term whole time director is defined in sec ______________ of the Companies Act 1956

  1. 2(25)
  2. 2(24)
  3. 3(25)
  4. 3(24)
Answer

(B)2(24)

QN30. ______________ is the minimum number that should be present at the meeting as per the articles of the company before any business can be validly transacted.

  1. Minutes
  2. Quorum
  3. Register
  4. Proxies
Answer

(B)Quorum

QN31. Decisions of a company are made by ______________ of its members passed at meeting of members

  1. Notice
  2. Resolution
  3. Quorum
  4. Circular
Answer

(B)Resolution

QN32. Winding up by special resolution passed by the company

  1. Compulsory winding up
  2. Winding up
  3. Voluntary winding up
  4. All of the above
Answer

(C)Voluntary winding up

QN33. ______________ is the first state in which assists realized liabilities are paid off and surplus is distributed

  1. Dissolution
  2. Winding up
  3. Acquisitions
  4. All of the above
Answer

(B)inding up

QN34. Factories Act came in to existence in ______________

  1. 1948
  2. 1881
  3. 1781
  4. 1757
Answer

(A)1948

QN35. A ______________ is a visual symbol attached to goods

  1. Patent
  2. A trade mark
  3. Corporal goods
  4. Sealed goods
Answer

(B)A trade mark

QN36. Mention one right that the proxy enjoys during a meeting?

  1. Right to attend the meeting
  2. Right to poll
  3. Right to vote
  4. None of these
Answer

(C)Right to vote

QN37. The company agrees that the remuneration of non - executive directors shall be decided by ______________

  1. Company
  2. Share holders
  3. Board of Directors
  4. Central Government
Answer

(C)Board of Directors

QN38. The alteration of the memorandum has to be certified by the Registrar within

  1. 30 days
  2. 15 days
  3. 45 days
  4. 60 days
Answer

(A)30 days

QN39. Legal position of a promoter of a company is ______________

  1. That of an agent
  2. That of a Trustee
  3. In a judiciary capacity
  4. That of a solicitor
Answer

(C)In a judiciary capacity

QN40. The procedure to write facts about resolution and its decision is called

  1. Quorum
  2. Notice
  3. Minutes of narration
  4. None of the above
Answer

(C)Minutes of narration

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