Description
MCQS and Answers
CHAPTER-4 LAW RELATING TO CORPORATE BUSINESS ENTITIES: 1) 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.
2) Which of the following is not a feature of company? a) Reduction of membership b) Perpetual succession c) Separate property
3)
Which of the following is not a provision pertaining to the lifting of the corporate veil? a) Transferability of interest b) Reduction of membership c) Failure to refund application money.
4)
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
5) 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
6) 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
7) A company incorporated outside India but having a place of business in India is called a) Unlimited company b) Private company c) Foreign company
8) Which company has a minimum paid up capital of 1lakhs or such higher paid up capital as may be prescribed a) Public company b) Private company
c) Foreign company
9) Which company need not hold any statutory meeting or file a statutory report? a) Private company b) Public company c) Foreign company
10) 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
11) The memorandum of association of a limited company need not essentially have which of the clauses a) Name clause b) Place clause c) Registered office clause
12) Which among the following is not an exception to the doctrine of Indoor Management. a) Forgery b) knowledge of irregularity
c) knowledge of articles
13) An invitation issued to public to purchase/subscribe shares or debentures of the company is known as: a) Prospectus b) Advertisement c) Offer
14) How many types of preference shares are there? a) 4 b) 3 c) 2
15) 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
16) 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
17) Purchase of its own securities by a company is popularly referred to as: a) Dividend payment b) Buy back of securities c) Reserves
18) The dividends can be declared out of which source of fund: a) Bank loan b) Current Profits c) Accumulated profits
19) 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
20) Companies other than a public company should have how many directors? a) One b) Two c) Seven
21) 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
22) Which of the following is not a duty of a director: a) Feduciary Duties b) Duties of care c) Legal Duties
23) 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
24) 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
25) A motion when passed is called?
a) Resolution b) Reconstruction c) Amalgamation
26) 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 27) 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 28) In case of amalgamation shares are sold and registered in the name of the a) Purchasing company b) Transferee company c) Shareholders
29) 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
30) When a company acquires another company that supplies raw material or provides services it is called a) Horizontal mergers b) Vertical mergers c) Conglomerate mergers 32) A software development company merging a company that is doing well in the hospitality line is an example of a) Vertical mergers b) Conglomerate mergers c) Horizontal mergers 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
ANSWERS:
1)
(a)The managing director.
2) (a)Reduction of membership
3) 4) 5) 6)
(a)Transferability of interest (c) Transferability of interest (b) Saloman vs. saloman & co ltd. (c) Government company
7) (c) Foreign Company 8) (b) Private Company 9) (a) Private Company 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) (a) Memorandum of Assocciation (b) Place Clause (c) Knowledge of Articles (a) Prospectus (b) 3 (a) Right Share (c) Cumulative Preference Shares (b) Buy back of securities (b) Current profits (c) As a board member
20) 21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32)
(b) two (c) By the resolution passed by the government (c) legal Duties (c) For breach of fiduciary duties (a) Statutory meeting (a) Resolution (a) 5,2 (a) Take Over (b) Transferee Company (a) Horizontal Merger (b) Vertical Mergers (b) Conglomerate mergers (a) Voluntary winding up
doc_307248983.doc
MCQS and Answers
CHAPTER-4 LAW RELATING TO CORPORATE BUSINESS ENTITIES: 1) 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.
2) Which of the following is not a feature of company? a) Reduction of membership b) Perpetual succession c) Separate property
3)
Which of the following is not a provision pertaining to the lifting of the corporate veil? a) Transferability of interest b) Reduction of membership c) Failure to refund application money.
4)
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
5) 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
6) 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
7) A company incorporated outside India but having a place of business in India is called a) Unlimited company b) Private company c) Foreign company
8) Which company has a minimum paid up capital of 1lakhs or such higher paid up capital as may be prescribed a) Public company b) Private company
c) Foreign company
9) Which company need not hold any statutory meeting or file a statutory report? a) Private company b) Public company c) Foreign company
10) 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
11) The memorandum of association of a limited company need not essentially have which of the clauses a) Name clause b) Place clause c) Registered office clause
12) Which among the following is not an exception to the doctrine of Indoor Management. a) Forgery b) knowledge of irregularity
c) knowledge of articles
13) An invitation issued to public to purchase/subscribe shares or debentures of the company is known as: a) Prospectus b) Advertisement c) Offer
14) How many types of preference shares are there? a) 4 b) 3 c) 2
15) 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
16) 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
17) Purchase of its own securities by a company is popularly referred to as: a) Dividend payment b) Buy back of securities c) Reserves
18) The dividends can be declared out of which source of fund: a) Bank loan b) Current Profits c) Accumulated profits
19) 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
20) Companies other than a public company should have how many directors? a) One b) Two c) Seven
21) 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
22) Which of the following is not a duty of a director: a) Feduciary Duties b) Duties of care c) Legal Duties
23) 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
24) 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
25) A motion when passed is called?
a) Resolution b) Reconstruction c) Amalgamation
26) 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 27) 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 28) In case of amalgamation shares are sold and registered in the name of the a) Purchasing company b) Transferee company c) Shareholders
29) 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
30) When a company acquires another company that supplies raw material or provides services it is called a) Horizontal mergers b) Vertical mergers c) Conglomerate mergers 32) A software development company merging a company that is doing well in the hospitality line is an example of a) Vertical mergers b) Conglomerate mergers c) Horizontal mergers 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
ANSWERS:
1)
(a)The managing director.
2) (a)Reduction of membership
3) 4) 5) 6)
(a)Transferability of interest (c) Transferability of interest (b) Saloman vs. saloman & co ltd. (c) Government company
7) (c) Foreign Company 8) (b) Private Company 9) (a) Private Company 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) (a) Memorandum of Assocciation (b) Place Clause (c) Knowledge of Articles (a) Prospectus (b) 3 (a) Right Share (c) Cumulative Preference Shares (b) Buy back of securities (b) Current profits (c) As a board member
20) 21) 22) 23) 24) 25) 26) 27) 28) 29) 30) 31) 32)
(b) two (c) By the resolution passed by the government (c) legal Duties (c) For breach of fiduciary duties (a) Statutory meeting (a) Resolution (a) 5,2 (a) Take Over (b) Transferee Company (a) Horizontal Merger (b) Vertical Mergers (b) Conglomerate mergers (a) Voluntary winding up
doc_307248983.doc