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business law MCQs 1
CHAPTER-4 LAW RELATING TO CORPORATE BUSINESS ENTITIES: 1) “Body Corporate” or “corporation” includes a company incorporated outside India but does not include. a) A corporate sole b) A corporate society c) Independent corporate entity
2) The company which is an independent entity is required to operate with which of the bodies? a) The managing director. b) The CEO. c) Government.
3) Which of the following is not a feature of company? a) Reduction of membership b) Perpetual succession c) Separate property
4) Which of the following is not a limitation of a company? a) Transferability of interest b) Reduction of membership c) Failure to refund application money.
5)
Which characteristics of a company states that the shares or other interest of any member in a company shall be movable property, transferable in the manner provided by the articles of the company. a) Perpetual succession b) Separate property c) Transferability of interest
6) Which case recognized the principle of “ limited liability” a) Freewheel (India) ltd vs. Dr. Veda Mitra (1969) b) Saloman vs. saloman & co ltd. c) Jones vs. Lipman
7) A company which has at least 51%of paid up capital held either by the central government or by any state government is called a) unlimited company b) Foreign company c) Government company d) Private company
8) A company incorporated outside India but having a place of business in India is called a) Unlimited company b) Government company
c) Private company d) Foreign company
9) Which company has a minimum paid up capital of 5lakhs or such higher paid up capital as may be prescribed a) Public company b) Private company c) Foreign company d) Government company
10) Which company need not hold any statutory meeting orfile a statutory report? a) Private company b) Public company c) Foreign company d) Government company
11) What is often described as the charter of the company defining as well as confining the powers of the company. a) Memorandum of association. b) Article of association c) Company contract
12) The memorandum of association of a limited company should essentially have which of the clauses a) Name clause b) Place clause c) Registered office clause
13) Which among the following is not an exception to the doctrine of Indoor Management. a) Forgery b) knowledge of irregularity c) knowledge of articles
14) An invitation issued to public to purchase/subscribe shares or debentures of the company is known as: a) Prospectus b) Advertisement c) Offer
15) How many types of preference shares are there? a) 4 b) 3 c) 2
16) Which type of share may be raised by issue of the additional share to the existing shareholders? a) Right share b) Shares at discount c) Bonus Shares
17) Which type of shares gives the holders the right that, if dividend cannot be paid in one year, it will be carried forward. a) Preference Shares b) Redeemable Shares c) Cumulative Preference Shares
18) Purchase of its own securities by a company is popularly referred to as: a) Dividend payment b) Buy back of securities c) Reserves
19) The dividends can be declared out of which source of fund: a) Bank loan b) Current Profits c) Accumulated profits
20) Which among the following is not a legal status of a Director
a) As a Trustee b) As an Agent c) As a board member
21) Companies other than a public company should have how many directors? a) One b) Two c) Seven
22) Which among the three is not a way for appointing a managing director: a) By virtue of an agreement with the company b) By virtue of the Memorandum/Articles of Association c) By resolution passed by the State government
23) Which of the following is not a duty of a director: a) Feduciary Duties b) Duties of care c) Legal Duties
24) Directors are personally not liable for which of the following:
a) For ultra vires acts b) For mala fide acts c) For breach of fiduciary duty
25) Which of the following meeting is conducted once in a life time of public limited company? a) Statutory meeting b) Board meeting c) Annual general meeting
26) A motion when passed is called? a) Resolution b) Reconstruction c) Amalgamation
27) The minimum number of members, should be personally present at the meeting of a public and private company? a) 5, 2 b) 2, 5 c) 5, 5 28) The passing over of direct or indirect control of assets of target company to acquiring company is called? a) Take over b) Merger
c) Reconstruction 29) In case of amalgamation shares are sold and registered in the name of the a) Purchasing company b) Transferee company c) Shareholders d) Debenture holders
30) Merging of two or more companies that are competing each other in producing the similar line of products and services is called a) Horizontal mergers b) Vertical mergers c) Conglomerate mergers d) Merger of companies
31) When a company acquires with another company that supplies raw material or provides services it is called a) Horizontal mergers b) Vertical mergers c) Conglomerate mergers e) Merger of companies
32) A company winding up either by passing an ordinary resolution or a special resolution is called a) Voluntary winding up b) Compulsory winding up c) Winding up subject to law d) Loss in business
doc_393628429.doc
business law MCQs 1
CHAPTER-4 LAW RELATING TO CORPORATE BUSINESS ENTITIES: 1) “Body Corporate” or “corporation” includes a company incorporated outside India but does not include. a) A corporate sole b) A corporate society c) Independent corporate entity
2) The company which is an independent entity is required to operate with which of the bodies? a) The managing director. b) The CEO. c) Government.
3) Which of the following is not a feature of company? a) Reduction of membership b) Perpetual succession c) Separate property
4) Which of the following is not a limitation of a company? a) Transferability of interest b) Reduction of membership c) Failure to refund application money.
5)
Which characteristics of a company states that the shares or other interest of any member in a company shall be movable property, transferable in the manner provided by the articles of the company. a) Perpetual succession b) Separate property c) Transferability of interest
6) Which case recognized the principle of “ limited liability” a) Freewheel (India) ltd vs. Dr. Veda Mitra (1969) b) Saloman vs. saloman & co ltd. c) Jones vs. Lipman
7) A company which has at least 51%of paid up capital held either by the central government or by any state government is called a) unlimited company b) Foreign company c) Government company d) Private company
8) A company incorporated outside India but having a place of business in India is called a) Unlimited company b) Government company
c) Private company d) Foreign company
9) Which company has a minimum paid up capital of 5lakhs or such higher paid up capital as may be prescribed a) Public company b) Private company c) Foreign company d) Government company
10) Which company need not hold any statutory meeting orfile a statutory report? a) Private company b) Public company c) Foreign company d) Government company
11) What is often described as the charter of the company defining as well as confining the powers of the company. a) Memorandum of association. b) Article of association c) Company contract
12) The memorandum of association of a limited company should essentially have which of the clauses a) Name clause b) Place clause c) Registered office clause
13) Which among the following is not an exception to the doctrine of Indoor Management. a) Forgery b) knowledge of irregularity c) knowledge of articles
14) An invitation issued to public to purchase/subscribe shares or debentures of the company is known as: a) Prospectus b) Advertisement c) Offer
15) How many types of preference shares are there? a) 4 b) 3 c) 2
16) Which type of share may be raised by issue of the additional share to the existing shareholders? a) Right share b) Shares at discount c) Bonus Shares
17) Which type of shares gives the holders the right that, if dividend cannot be paid in one year, it will be carried forward. a) Preference Shares b) Redeemable Shares c) Cumulative Preference Shares
18) Purchase of its own securities by a company is popularly referred to as: a) Dividend payment b) Buy back of securities c) Reserves
19) The dividends can be declared out of which source of fund: a) Bank loan b) Current Profits c) Accumulated profits
20) Which among the following is not a legal status of a Director
a) As a Trustee b) As an Agent c) As a board member
21) Companies other than a public company should have how many directors? a) One b) Two c) Seven
22) Which among the three is not a way for appointing a managing director: a) By virtue of an agreement with the company b) By virtue of the Memorandum/Articles of Association c) By resolution passed by the State government
23) Which of the following is not a duty of a director: a) Feduciary Duties b) Duties of care c) Legal Duties
24) Directors are personally not liable for which of the following:
a) For ultra vires acts b) For mala fide acts c) For breach of fiduciary duty
25) Which of the following meeting is conducted once in a life time of public limited company? a) Statutory meeting b) Board meeting c) Annual general meeting
26) A motion when passed is called? a) Resolution b) Reconstruction c) Amalgamation
27) The minimum number of members, should be personally present at the meeting of a public and private company? a) 5, 2 b) 2, 5 c) 5, 5 28) The passing over of direct or indirect control of assets of target company to acquiring company is called? a) Take over b) Merger
c) Reconstruction 29) In case of amalgamation shares are sold and registered in the name of the a) Purchasing company b) Transferee company c) Shareholders d) Debenture holders
30) Merging of two or more companies that are competing each other in producing the similar line of products and services is called a) Horizontal mergers b) Vertical mergers c) Conglomerate mergers d) Merger of companies
31) When a company acquires with another company that supplies raw material or provides services it is called a) Horizontal mergers b) Vertical mergers c) Conglomerate mergers e) Merger of companies
32) A company winding up either by passing an ordinary resolution or a special resolution is called a) Voluntary winding up b) Compulsory winding up c) Winding up subject to law d) Loss in business
doc_393628429.doc