MCQ Questions for Class 11 Business Studies Chapter 7 Formation of a Company with Answers
Question 1.
The dividend payable to ___________ shareholders is payable on fixed figure or percent
(a) Equity
(b) Non-preference
(c) Preference
(d) All of the above
Answer
Answer: (c) Preference
Question 2.
A company is known as the _______company of another company if it has control over that other company.
(a) Subsidiary
(b) Holding
(c) Controlling
(d) Statutory
Answer
Answer: (b) Holding
Question 3.
A private company means a company which has a minimum paid up capital of Rs.______
(a) 1,00,000
(b) 5,00,000
(c) 50,00,000
(d) None of the above
Answer
Answer: (a) 1,00,000
Question 4.
The Prospectus must be issued to the public within ______________ days of its date.
(a) 30
(b) 60
(c) 90
(d) 100
Answer
Answer: (c) 90
Question 5.
__________ means the total amount of called up capital on the shares issued and subscribed by the shareholders on the capital account.
(a) Called-up capital
(b) subscribed capital
(c) nominal capital
(d) Paid-up capital
Answer
Answer: (a) Called-up capital
Question 6.
Par value of shares means the __________ value of the shares
(a) Actual
(b) face
(c) Market
(d) dividend
Answer
Answer: (b) face
Question 7.
Among the following which documents are not mandatory to be submitted to the registrar along with an incorporation application by a private company.
(a) Address of Registered office & undertaking
(b) Undertaking and statement of capital
(c) Statement of capital & list of directors
(d) List of directors and statement of capital
Answer
Answer: (a) Address of Registered office & undertaking
Question 8.
The articles of association need to be signed by
(a) All proposed directors
(b) Registrar
(c) Subscribers of memorandum
(d) None of the above
Answer
Answer: (c) subscribers of the memorandum
Question 9.
“Men may come and men may go but the company exists”- this explains which characteristics of the company as per companies Act 1956.
(a) Separate legal entity
(b) Perpetual Succession
(c) Capacity to sue
(d) None of the above
Answer
Answer: (b) Perpetual Succession
Question 10.
___________ cannot give an invitation to the public to subscribe for any shares in or debentures of the company
(a) Subsidiary company
(b) Statutory Company
(c) Private company
(d) Registered company
Answer
Answer: (c) Private company
Question 11.
A proposed name of a Company is considered undesirable if
(a) It is identical to the name of an existing company
(b) It resembles closely the name of an existing company
(c) It is an emblem of the Government of India, the United Nations, etc.
(d) In case of any of the above
Answer
Answer: (d) In case of any of the above
Question 12.
Application for approval of name of a company is to be made to
(a) SEBI
(b) Registrar of Companies
(c) Government of India
(d) Government of the State in which Company is to be registered
Answer
Answer: (b) Registrar of Companies
Question 13.
The application for registration of a company should be presented to the _______________ of the state appointed under Companies Act 1956
(a) Controller
(b) Registrar
(c) Governor
(d) Registration officer
Answer
Answer: (b) Registrar
Question 14.
Powers, rights, remuneration, qualification, and duties of directors are discussed clearly in
(a) Memorandum of Association
(b) Articles of Association
(c) Prospectus
(d) None of the above
Answer
Answer: (b) Articles of Association
Question 15.
Private company prohibits any invitation or acceptance of deposits from persons other than its ___________
(a) Members
(b) directors
(c) Partners
(d) Banks
Answer
Answer: (a) Members
Question 16.
Section 12 of Companies Act 1956, deals with
(a) Incorporation
(b) Share capital
(c) Number of Directors
(d) Shareholders
Answer
Answer: (a) Incorporation
Question 17.
The shares of a _______________ company can be freely transferable
(a) Private ltd
(b) Public ltd
(c) Partnership
(d) All of the above
Answer
Answer: (b) Public ltd
Question 18.
Which of the following is not a clause of memorandum of association
(a) situation
(b) capital
(c) subscription
(d) directors
Answer
Answer: (d) directors
Question 19.
A private company means a company which has a minimum paid up capital of Rs._________
(a) 1,00,000
(b) 5,00,000
(c) 50,00,000
(d) None of the above
Answer
Answer: (b) 5,00,000
Question 20.
The certificate of capital will be issued by
(a) Registrar of Companies Act
(b) Controller of companies Act
(c) Registrar of capital issues
(d) Controller of capital issues
Answer
Answer: (d) Controller of capital issues
Question 21.
Which of the following clause of the Memorandum of Association cannot be altered?
(a) Name
(b) Object
(c) Situation
(d) Liability
Answer
Answer: (d) Liability
Question 22.
The company will be considered as a separate person and different from its members from the date of __________
(a) Start of business
(b) Apply for registration
(c) Receive incorporation certificate
(d) Mentioned in the certificate
Answer
Answer: (d) Mentioned in the certificate
Question 23.
A prospectus is issued by
(a) A private company
(b) A public company seeking investment from public
(c) A public enterprise
(d) A public company
Answer
Answer: (b) A public company seeking investment from public
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