Business Law Online MCQ Set 14

QN01. Sec. ______________ of the companied Act defines foreign company

1. 4(4)
2. 3(1)(i)
3. 3(1)(ii)
4. 591

Answer

(D)591

QN02. A company may change its name by passing ______________ with the approval of central govt.

1. Special resolution
2. Ordinary resolution
3. Both A & B
4. None of the above

Answer

(A)Special resolution

QN03. Golden rule was laid down by ______________

1. KINDERSELY VC in new Brun Wick Co. V Marreride
2. Edington V Fitzmaurice
3. Treeman V Buckhcats
4. Royal British Bank V Turquand

Answer

(A)KINDERSELY VC in new Brun Wick Co. V Marreride

QN04. ______________ is a person who has signed company’s memorandum of association

1. Individual
2. Corporate body
3. Member
4. Legal person

Answer

(C)Member

QN05. The privilege of limited liability was introduced in the Indian Company Law, in the year of

1. 1850
2. 1857
3. 1927
4. 1956

Answer

(B)1857

QN06. The first important document to be filed with the Registrar is ______________

1. Articles of Association
2. Prospectus
3. Memorandum of Association
4. None of these.

Answer

(C)Memorandum of Association

QN07. ______________ contain the rules and regulation of the company

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

Answer

(C)Articles of Association

QN08. The capital with which the company is registered is called the ______________

1. Subscribed Capital
2. Nominal Capital
3. Working Capital
4. None of these

Answer

(B)Nominal Capital

QN09. The procedure for change of registered office from one city to another within the state is by passing ______________

1. Special resolution only
2. Ordinary resolution only
3. Special resolution and approval of central government
4. Ordinary resolution and approval of company law board

Answer

(A)Special resolution only

QN10. The forms of articles of association are given in tables ______________ is schedule I of the companies Act 1956

1. A,C,D&E
2. B,C,D&E
3. B,A,C&E
4. B,D&E

Answer

(A)A,C,D&E

QN11. According to sec.225, the directors should be appointed in he ______________

1. Office of the Registrar
2. General Meeting
3. Company
4. Share holders

Answer

(B)General Meeting

QN12. Directors are ______________ of he powers conferred on then and they must exercise those powers bonafide and for the benefit of the company.

1. Trustee
2. Management
3. Representative
4. None of the above

Answer

(A)Trustee

QN13. The quorum for a meeting of the board of directors shall be ______________ of its total strength or 2 directors whichever is higher.

1. 3
2. ½
3. ¼
4. 1/3

Answer

(D)1/3

QN14. ______________ can be imposed on directors for non compliance of requirements’of companies Act

1. Penalty
2. Fine
3. Statutory penalty
4. Criminal liability

Answer

(B)Fine

QN15. ______________ is the first general meeting of the share holders odf a public company

1. Extra ordinary meeting
2. Class meeting
3. General meeting
4. Statutory meeting.

Answer

(D)Statutory meeting.

QN16. ______________ called for dealing with some urgent special business which cannot e postponed till the next annual general meeting.

1. Extra ordinary general meeting
2. Ordinary general meeting
3. Class meeting
4. None of the above.

Answer

(A)Extra ordinary general meeting

QN17. ______________ refers to the instrument by which a person is appointed to act for another at a meeting of the company.

1. Proxy
2. Quorum
3. Motion
4. None of the above

Answer

(A)Proxy

QN18. winding up by the order of Tribunal is ______________

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

Answer

(B)Compulsory winding up

QN19. The order of dissolution can be issued only by the company

1. Tribunal
2. Company Law Board
3. Both A and B
4. None of these.

Answer

(A)Tribunal

QN20. ______________ mean a person who is either child or Adolescent

1. Child
2. Young person
3. Adolescent
4. Adult

Answer

(B)Young person

QN21. ______________ auditors of the company are appointed by the share holders in annual General Meeting.

1. General
2. Statutory
3. Special
4. None of these

Answer

(B)Statutory

QN22. A registered trade mark is called ______________

1. Patent
2. Sealed good
3. Common Law Mark
4. ISI mark

Answer

(C)Common Law Mark

QN23. The minutes of the company in case of a Board Meeting shall be signed by ______________

1. Director
2. Chairman
3. Managing director
4. Both A and B.

Answer

(B)Chairman

QN24. Shelf Prospectus means a prospectus issued by ______________

1. Any trading company
2. Any industrial company
3. Any financial institution of bank
4. None of the above.

Answer

(C)Any financial institution of bank

QN25. The common seal of the company should have

1. The company’s name
2. The word Corporate seal
3. The Place of the company
4. All of the above.

Answer

(D)All of the above.

QN26. For declaration of dividend no ______________ resolution is required

1. Ordinary
2. Special
3. Simple
4. None of the above

Answer

(B)Special

QN27. Anything done under an agreement between the company and third party requires recognition of the company in the form of ______________

1. Contract
2. Agreement
3. Partnership
4. Official seal

Answer

(D)Official seal

QN28. Private company means a company which has a minimum paid up capital of ______________

1. Rs.2,00,000
2. Rs.5,00,000
3. Rs.1,00,000
4. Rs.1,50,000

Answer

(C)Rs.1,00,000

QN29. On a share of Rs.200 of a company a shares holder has already paid Rs.150 . His L9iability is now limited to:

1. 200
2. 50
3. 150
4. 0

Answer

(B)50

QN30. Doctrine of Ultra virus has reference to ______________ clause

1. Object
2. Subscription
3. Liability
4. None of these.

Answer

(A)Object

QN31. ______________ are subordinate to and controlled by the memorandum.

1. Articles of Association
2. Prospectus
3. Statement in law
4. All of the above.

Answer

(A)Articles of Association

QN32. The idea of carrying on a business is conceived by a person by a group of persons called ______________

1. Exploits
2. Promoters
3. Directors
4. None of these

Answer

(B)Promoters

QN33. The company shall give notice of alteration to the Register within ______________ of passing the resolution

1. 3 months
2. 6 months
3. 30 days
4. 60 days

Answer

(C)30 days

QN34. The association that are not registered under sec. II of the companies act is ______________

1. Incorporated Association
2. Illegal Association
3. ]Non Licensed Association
4. Unregistered Association

Answer

(B)Illegal Association

QN35. Statutory companies are also known as _____________&#95

1. State legislative
2. Govt. Company
3. Corporation
4. None of the above

Answer

(C)Corporation

QN36. ______________ is the construction of a company

1. Promotion
2. Certificate of incorporation
3. Memorandum
4. Documents

Answer

(C)Memorandum

QN37. A public company having a share capital, becomes entitled to commence business only after obtaining a further certificate known as a ______________

1. Company formation
2. Certificate of incorporation
3. Provisional contracts
4. Certificate of commence business

Answer

(D)Certificate of commence business

QN38. ______________ is subordinate to and controlled by the memorandum of association

1. Prospectus
2. Statement in lieu
3. Articles of association
4. None of the above

Answer

(C)Articles of association

QN39. The doctrine of indoor Management has its own origin in

1. Salmon V Salona U&Co.Ltd.
2. Ryland V Turquand
3. Royal British Bank V Turquand
4. None of these

Answer

(C)Royal British Bank V Turquand

QN40. ______________ is the supreme policy framing and decision making organ of a company.

1. Board of directors
2. Share holders
3. Auditor
4. Body corporate

Answer

(A)Board of directors