Company Law Quiz Questions and Answers

Company Law Quiz Questions and Answers
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Multiple choice questions of Subject Commerce MCQ Company Law Quiz Questions and Answers ( Company Law Quiz Questions and Answers ) for Entrances (Entrance Exam) Conducted by different Central and State Universities are given below.

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Company Law Quiz Questions and Answers

1. Which companies are exempted to add ‘Ltd’ or ‘Pvt Ltd’ at the end of their name?

(a) Private

(c) Defunct

(b) Government

(d) Association not for profits

Ans. d

2. Under which Section, a private company can voluntarily converted into public company

(b) 44

(a) 34

(c) 54

(d) 64

Ans. b

3. In which one or of the following companies, a member does not have a right to appoint proxy?

(a) Public company having share capital

(b) Public company not having share capital

(c) Private company not having share capital

(d) None of the above

Ans. b

4. In case of non-profit making companies, notice of general meeting should be given within days.

(c) 21

(a) 14

(b) 15

(d) 22

Ans. a

5. A private company can freely converted into public company under which section?

(a) 44

(b) 56

(c) 33

(d) 34

Ans. a

6. Accepting of deposits from public in case of private company is

(a) prohibited

(c) acceptable

(b) restricted

(d) None of these

Ans. a

7. XYZ Company is having 10% share capital held by another public company and 35% held by Central Government and 55% held by people, then that company is

(a) government company

(C) public company

(b) private company

(d) None of these ‘

Ans. c

8. How many members should sign the MOA in case of private company?

(a) 1

(c) 3

(b) 2

(d) 4

Ans. b

9. Which of the following is/are not required to issue prospectus?

(a) Private company

(c) Sweat equity issue

(b) In case of right issue

(d) All of these

Ans. d

10. Which of the following book is generally not mandatory to be kept by a company?

(a) All receipts and expenditure of the company

(b) All sales and purchase of the company

(c) Details of numbers of units produced of each product

(d) Assets and Liabilities of the company

Ans. c

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11. In case of readherring prospectus, the refund is made with an interest @

(b) 13%

(d) 16%

(a) 12%

(c) 15%

Ans. c

12. Transfer of shares in the case of public company is

(a) prohibited

(c) freely transferable

(b) restricted

(d) None of these

Ans. c

13. Private company can start business only after getting certificate of

(a) Incorporation

(c) Registration

(b) Commencement of business

(d) None of these

Ans. a

14. What is punishment for directors, promoters and other persons for misrepresentation in prospectus?

(a) 50,000

(c) Both ‘a’ and ‘b’

(b) 2 years imprisonment

(d) None of these

Ans. c

15. Under which section of the Act, the term ‘company defined?

(a) Section 4(2)

(c) Section 4(1)

(b) Section 3 (1)

(d) Section 3 (2)

Ans. b

16. Address of the registered office is situated in

(b) AOA

(d) None of these

(a) MOA

(c) prospectus

Ans. b

17. The word ultra vires means in case of a company

(b) within the power

(d) None of these

(a) beyond the power

(c) Both ‘a’ and ‘b

Ans. a

18. If company is limited by shares, then what is the liability of members?

(a) Unlimited liabity

(c) Both ‘a’ and b’

(b) Unpaid value of shares

(d) None of these

Ans. b

19. Sagar obtained the incorporation on 1st, Jan 2014 and C.C.B on 1st, June 2014. The earliest date on which it can hold the statutory meeting is

(a) 1st Feb, 2014

(c) 1st July, 2014

(b) 1st March, 2014

(d) 1st August, 2014

Ans. d

20. The minimum application money should be nominal value as per SEBI guidelines. .of

(a) 25%

(b) 30%

(c) 40%

(d) None of these

Ans. a

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21. Contracts made after incorporation but before the grant of Certificate of Commencement of business are

(a) provisional contracts

(c) preliminary contracts

(b) reincorporation contracts

(d) Both b’ and ‘c

Ans. c

22. Private company can borrow funds

(a) after incorporation

(b) after obtaining certificate to commence business

(c) after holding first annual general meeting

(d) None of the above

Ans. a

23. The main subscription amount is reckoned with amounts payable in

(a) cash only

(c) cash as well as kind

(b) kind only

(d) None of these

Ans. a

24. In case of shares, the maximum limit of underwriting commission will be

(a) 2%

(c) 5%

(b) 3%

(d) None of these

Ans. c

25. The rule of majority is not applicable when

(a) the act done is illegal

(b) the act done is ultra vires the company

(c) the act done constitutes a fraud

(d) All of the above

Ans. d

26. What is maximum period for which deposits can be issued?

(a) 36 months

(c) 12 months

(b) 24 months

(d) None of these

Ans. a

27. The person who is holding share warrant will be a … of the company.

(a) member

(c) partner 

(b) shareholder

(d) None of these

Ans. b

28. Which of the following is a right of the members of a company?

(a) Right to have shares

(c) Right to appoint director

(d) All of these

(b) Right tp appoint auditor

Ans. d

29. The capital which is a part of the uncalled capital of the company which can be called up only in the event of its winding up is called

(a) issued capital

(c) authorised Capital

(b) nominal capital

(d) reserve capital

Ans. d

30. What is the validity period of information memorandum?

(a) 1 year

(c) 1.5 year

(b) 5 year

(d) 2.5 year

Ans. a

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31. Quorum should be present at the

(a) commencement of meeting

(b) middle of the meeting

(c) end of the meeting

(d) any time during meeting

Ans. a

32. Within 30 days of completion of buy back, company shall file the details with whom.

(a) Registrar

(c) Both ‘a’ and ‘b’

(b) SEBI

(d) None of these

Ans. a

33. The company must deliver share certificate within ………., if the shares applied for transfer.

(a) 3 months

(c) 5 months

(b) 2 months

(d) None of these

Ans. b

34. The chairman on his own motion…. also order a poll.

(a) must

(c) may

(b) should

(d) None of these

Ans. c

35. Own funds are called 

(b) share capital

(d) None of these

(a) debenture capital

(c) loan capital

Ans. b

36. What is the time limit for conducting statutory meeting?

(a) 1 to 5 months

(c) 1 to 9 months

(b) 1 to 6 months

(d) None of these

Ans. b

37. In case of any default is made in filing the particulars related to charge, then penalty is upto. thousands

(a) 5 to 10

(c) 15 to 20

(b) 10 to 15

(d) None of these

Ans. a

38. Every other establishment other than factory in which there are more than … employees must be to come under payment of Bonus Act.

(b) 20

(a) 15

(c) 25

(d) 30

Ans. b

39. Which one of the following resolutions is need not to be filed with the Registrar?

(a) Special resolution

(b) A resolution of board relating to appointment of a managing director

(c) A resolution approving the appointment of a sole selling agent

(d) An ordinary resolution

Ans. c

40. Return paid on shares is

(a) interest

(b) dividend

(c) commission

(d) None of these

Ans. b

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41. Notice of Adjourn meeting is not required of a meeting is

(a) Adjourn for want of quorum

(b) Adjourn since die

(c) Adjourn for more than 30 days

(d) None of the above

Ans. a

42. …… is the official recording of the proceedings of a meeting.

(a) Quorum

(c) Both ‘a’ and ‘b’

(b) Minutes

(d) None of these

Ans. b

43. Who should certify that company allotted the shares and cash received in respect thereof?

(a) Auditor

(c) Shareholder

(b) Director

(d) Member

Ans. a

44. Notice of statutory meeting should be given within a period not less than

(a) 21 clear days

(b) 14 clear days

(c) 7 clear days

(d) None of these

Ans. a

45. ……… is a charge when it is made specifically to cover assets.

(a) Fixed

(c) Floating

(b) Specific

(d) Both ‘a’ and ‘b’

Ans. b

46. The person to whom the rights and duties are endorsed is called ……….

(a) transferee

(c) endorser

(b) transferor

(d) endorsee

Ans. a

47. Unsecured debentures do not require any registration because it is not secured by …….

(a) fixed charge

(c) Both ‘a’ and ‘b”

(b) floating charge

(d) None of these

Ans. c

48. A charge requiring registration shall be filed with the Registrar within ………..

(a) 21 days

(c) 45 days

(b) 30 days

(d) None of these

Ans. b

49. ….. specifies the time limit within which share certificate is to be delivered.

(a) Section 110

(c) Section 112

(b) Section 111

(d) Section 113

Ans. d

50. Audit committee shall act in accordance with the terms of reference to be specified by

(a) statutory audits

(b) SEBI

(c) Board of Directors

(d) central government

Ans. c

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