QN161: Which type of partner actively participates in the day-to-day management of the partnership? Answer: c) Active partner
a) Sleeping partner
b) Nominal partner
c) Active partner
d) Secret partner
Answer
QN162: A partner who invests capital but does not take part in the management of the partnership is known as: Answer: b) Silent partner
a) Working partner
b) Silent partner
c) Limited partner
d) General partner
Answer
QN163: In the context of partnerships, what does the term “dissolution” refer to? Answer: a) The termination of a partnership agreement
a) The termination of a partnership agreement
b) The conversion of a partnership into an LLP
c) The addition of new partners to an existing partnership
d) The transfer of partnership assets to individual partners
Answer
QN164: Which Act governs the functioning of Limited Liability Partnerships (LLPs) in India? Answer: c) Limited Liability Partnership Act, 2008
a) Partnership Act, 1932
b) Companies Act, 2013
c) Limited Liability Partnership Act, 2008
d) Income Tax Act, 1961
Answer
QN165: Who is considered a designated partner in a Limited Liability Partnership (LLP)? Answer: c) Any partner appointed by the Registrar of LLP
a) The partner with the highest capital contribution
b) The partner responsible for financial matters
c) Any partner appointed by the Registrar of LLP
d) The partner nominated by the Central Government
Answer
QN166: LLP registration requires the filing of which document with the Registrar of LLP? Answer: b) Memorandum of Association
a) Partnership deed
b) Memorandum of Association
c) Articles of Association
d) Incorporation certificate
Answer
QN167: Can a partnership firm be converted into an LLP? Answer: a) Yes, with the consent of all partners
a) Yes, with the consent of all partners
b) No, it is not legally allowed
c) Yes, but only if there is a change in partnership agreement
d) Yes, but only if all partners become designated partners
Answer
QN168: Which of the following is not a mode of dissolution of a partnership? Answer: d) Dissolution by appointment
a) Dissolution by agreement
b) Dissolution by operation of law
c) Dissolution by insolvency
d) Dissolution by appointment
Answer
QN169: Under the Limited Liability Partnership Act, what is the minimum number of designated partners required in an LLP? Answer: b) Two
a) One
b) Two
c) Three
d) Four
Answer
QN170: Which partner in an LLP is personally liable for the wrongful acts or omissions of other partners? Answer: a) Designated partner
a) Designated partner
b) Sleeping partner
c) Nominal partner
d) Active partner
Answer
QN171: When does the dissolution of an LLP occur? Answer: c) When all partners unanimously decide to dissolve the LLP
a) When the designated partners decide to dissolve the LLP
b) When the Registrar of LLP orders the dissolution
c) When all partners unanimously decide to dissolve the LLP
d) When the LLP becomes insolvent
Answer
QN172: Which of the following is a mandatory provision for the registration of an LLP? Answer: c) Payment of a registration fee
a) Approval from the Ministry of Corporate Affairs
b) Submission of a business plan
c) Payment of a registration fee
d) Appointment of a company secretary
Answer
QN173: What is the maximum number of partners allowed in an LLP? Answer: d) There is no maximum limit
a) 10
b) 20
c) 50
d) There is no maximum limit
Answer
QN174: Which type of partner is liable for the debts and obligations of a partnership to the full extent of their personal assets? Answer: b) General partner
a) Limited partner
b) General partner
c) Sleeping partner
d) Nominal partner
Answer
QN175: What is the effect of dissolution on the liability of partners in a partnership? Answer: c) The liability of partners remains the same
a) The liability of partners is extinguished
b) The liability of partners is limited to their capital contributions
c) The liability of partners remains the same
d) The liability of partners is transferred to the designated partner
Answer
QN176: What is the term used for the process of converting a partnership into an LLP? Answer: c) Conversion
a) Incorporation
b) Registration
c) Conversion
d) Transformation
Answer
QN177: Can a limited partner actively participate in the management of a partnership? Answer: c) No, limited partners have no management rights
a) Yes, to the same extent as a general partner
b) Yes, but only with the consent of other partners
c) No, limited partners have no management rights
d) Yes, but only if they convert into a designated partner
Answer
QN178: Which of the following is not a ground for the dissolution of an LLP? Answer: d) Expulsion of a partner
a) Insolvency of the LLP
b) Mutual agreement of partners
c) Death of a designated partner
d) Expulsion of a partner
Answer
QN179: Apologies for the confusion. Here are the twenty multiple-choice questions with answer options and the correct option indicated for each question: Answer:b) Companies Act 2013
1. Which of the following is the governing legislation for companies in India?
a) Companies Act 1956
b) Companies Act 2013
c) Partnership Act 1932
d) Securities and Exchange Board of India Act 1992
Answer
QN180: The Companies Act 2013 regulates the formation and operation of companies in which country? Answer:a) India
a) India
b) United States
c) United Kingdom
d) Australia
Answer
QN181: Which section of the Companies Act 2013 deals with the definition and types of companies? Answer:b) Section 2
a) Section 10
b) Section 2
c) Section 18
d) Section 34
Answer
QN182: A company that is formed with the objective of promoting commerce, art, science, religion, charity, or any other useful object is known as: Answer:c) Non-profit Company
a) Public Company
b) Private Company
c) Non-profit Company
d) Producer Company
Answer
QN183: Which document outlines the powers, objectives, and scope of activities of a company? Answer:a) Memorandum of Association
a) Memorandum of Association
b) Articles of Association
c) Certificate of Incorporation
d) Prospectus
Answer
QN184: The subscribers to the Memorandum of Association of a company are also known as: Answer:c) Promoters
a) Shareholders
b) Directors
c) Promoters
d) Auditors
Answer
QN185: The Memorandum of Association must be signed by a minimum of how many subscribers in the case of a public company? Answer:b) 2
a) 1
b) 2
c) 3
d) 7
Answer
QN186: Which clause of the Memorandum of Association states the authorized share capital of the company? Answer:d) Capital Clause
a) Name Clause
b) Object Clause
c) Liability Clause
d) Capital Clause
Answer
QN187: The Articles of Association of a company contain rules and regulations related to: Answer:d) All of the above
a) Shareholders’ rights and duties
b) Directors’ appointments and powers
c) Conduct of meetings
d) All of the above
Answer
QN188: The Articles of Association are considered as a contract between the company and its: Answer: d) Shareholders
a) Directors
b) Employees
c) Auditors
d) Shareholders
Answer
QN189: Which section of the Companies Act 2013 specifies the minimum number of directors required for different types of companies? Answer: a) Section 154
a) Section 154
b) Section 170
c) Section 195
d) Section 201
Answer
QN190: A company limited by shares refers to a company in which the liability of its members is: Answer: c) Limited by shares held by them
a) Limited by guarantee
b) Unlimited
c) Limited by shares held by them
d) None of the above
Answer
QN191: The process by which a company obtains a legal identity separate from its members is known as: Answer: a)
a) Incorporation
b) Registration
c) Merger
d) Dissolution
Answer
QN192: Incorporation Answer: c) Certificate of Incorporation
14. Which document serves as conclusive evidence of the incorporation of a company?
a) Memorandum of Association
b) Articles of Association
c) Certificate of Incorporation
d) Prospectus
Answer
QN193: The Articles of Association can be altered by passing a special resolution by the: Answer: b) Shareholders
a) Board of Directors
b) Shareholders
c) Company Secretary
d) Registrar of Companies
Answer
QN194: Which of the following statements is true regarding the alteration of the Memorandum of Association? Answer: c) It requires approval from the National Company Law Tribunal (NCLT).
a) It can be altered at any time by the Board of Directors.
b) It can be altered by passing an ordinary resolution.
c) It requires approval from the National Company Law Tribunal (NCLT).
d) It cannot be altered once the company is incorporated.
Answer
QN195: Which section of the Companies Act 2013 deals with the prospectus issued by a company? Answer: b) Section 33
a) Section 23
b) Section 33
c) Section 43
d) Section 53
Answer
QN196: The Memorandum of Association and Articles of Association of a company must be filed with the: Answer: a) Registrar of Companies (ROC)
a) Registrar of Companies (ROC)
b) Reserve Bank of India (RBI)
c) Securities and Exchange Board of India (SEBI)
d) Ministry of Corporate Affairs (MCA)
Answer
QN197: Which form is used to apply for the incorporation of a company under the Companies Act 2013? Answer: b) Form INC-1
a) Form A
b) Form INC-1
c) Form DIR-12
d) Form MGT-14
Answer
QN198: The registration of a company is considered complete when the Registrar of Companies issues a: Answer: c) Certificate of Incorporation
a) Certificate of Commencement
b) Certificate of Authorization
c) Certificate of Incorporation
d) Certificate of Amendment
Answer
QN199: Which of the following is true regarding the issuance of shares through a prospectus? Answer: b) A prospectus is required when issuing shares to new investors, but not existing shareholders.
a) A prospectus is required when issuing shares to existing shareholders only.
b) A prospectus is required when issuing shares to new investors, but not existing shareholders.
c) A prospectus is not required when issuing shares to any type of shareholders.
d) A prospectus is required when issuing shares to both existing shareholders and new investors.
Answer
QN200: In securities regulation, what is the purpose of a prospectus? Answer: d) To provide essential information to investors about the company and its securities.
a) To provide detailed information about the company’s shareholders.
b) To disclose financial statements of the company.
c) To market the shares to potential investors.
d) To provide essential information to investors about the company and its securities.
Answer
