1. What is known as a charter of a Company?

[A] Memorandum of Association

[B] Bye laws

[C] Articles of Association

[D] Prospectus

Answer: Option [A]

2. Minimum paid up capital for a public company

[A] 500000

[B] 400000

[C] 300000

[D] 200000

Answer: Option [A]

3. The name of a company can be changed by__________.

[A] an ordinary resolution

[B] a special resolution

[C] the approval of the union government

[D] a special resolution and with the approval of the central government

Answer: Option [D]

4. The __________defines a companys relations with the outside world.

[A] prospectus

[B] memorandum of association

[C] articles of association .

[D] statement in lieu of prospectus .

Answer: Option [B]

5. The most important document of a company is its__________.

[A] prospectus

[B] annual report.

[C] memorandum of association

[D] articles of association

Answer: Option [C]

6. Mark out the type of alteration that is permitted in the articles of association____.

[A] that may not be in the companys interest .

[B] that is contrary to the provisions of the companies act.

[C] that increases a members liability without his written consent .

[D] that is consistent with the memorandum of association .

Answer: Option [D]

7. Mark out the document that need not be prepared and registered with the registrar of companies in public limited companies.

[A] statutory declaration

[B] memorandum of association .

[C] articles of association .

[D] directors undertakings to take up and pay for qualification shares

Answer: Option [C]

8. The share capital of a company may be reduced by __________.

[A] an ordinary resolution

[B] a special resolution

[C] a resolution of the board of directors

[D] obtaining permission from the company law board

Answer: Option [B]

9. The ___________ on equity shares is not cumulative.

[A] dividend

[B] profit

[C] loss

[D] reserve

Answer: Option [A]

10. The ___________ constitute the top administrative organ of the company. .

[A] general manager .

[B] shareholders.

[C] board of directors.

[D] advisory panel.

Answer: Option [C]

11. A directors election takes place in a general meeting through a separated Resolution passed by a _______ majority

[A] single

[B] two-thirds

[C] three-fourths.

[D] five-sixths .

Answer: Option [A]

12. The total managerial remuneration to the directors and the manager in respect of any financial year must not exceed _________ percent of the net profit.

[A] one

[B] three

[C] eleven

[D] ten

Answer: Option [C]

13. Where a company has three directors, the maximum remuneration payable to all of them is ________% of the annual net profit

[A] 5.

[B] 10.

[C] 20.

[D] 25.

Answer: Option [B]

14. A person cannot act as managing director of more than _______company /companies at a time

[A] one

[B] two

[C] four

[D] five

Answer: Option [B]

15. The partnership entity may be regarded as ____________.

[A] a legal entity .

[B] an accountable entity .

[C] both a legal and accountable entity .

[D] neither a legal nor an accountable entity

Answer: Option [D]

16. The amount of minimum subscription may be learnt from the ______________.

[A] prospectus

[B] memorandum of association

[C] articles of association .

[D] records of general meetings

Answer: Option [A]

17. When can a private company commence business ?

[A] at any time

[B] after applying for registration.

[C] after obtaining the certificate of incorporation.

[D] after obtaining the certificate of commencement of business .

Answer: Option [C]

18. An exception to the doctrine of constructive notice is____________.

[A] the doctrine of ultra vires .

[B] the doctrine of indoor management .

[C] lifting the corporate veil

[D] the doctrine of ultra vires in Articles of Association.

Answer: Option [B]

19. A prospectus is to be issued within _______days of registration.

[A] 30

[B] 60

[C] 90

[D] 180

Answer: Option [C]

20. All monies received with the application of shares are to be deposited_______.

[A] with the controller of capital issues .

[B] in the companys bank account

[C] in a special account opened in a scheduled bank for the purpose

[D] with the registrar of companies

Answer: Option [C]

21. The minimum subscription is to be received within ______days of the offer.

[A] 30

[B] 60

[C] 120

[D] 150

Answer: Option [C]

22. The charter of a company refers to its ________________.

[A] prospectus

[B] memorandum of association

[C] articles of association

[D] statement in lieu of a prospectus

Answer: Option [B]

23. An association of 30 persons not registered under the companies Act but carrying on a business is a/an ___________.

[A] illegal association

[B] partnership

[C] private company

[D] public company.

Answer: Option [A]

24. A company is a juristic person with a perpetual succession _____________

[A] as such it dies.

[B] its life depends on the life of its members.

[C] it is created by a process of law and can be put to an end only by a process of law

[D] none

Answer: Option [C]

25. On a share of Rs. 100 of a company, a shareholder has already paid Rs. 30.His Liability is now limited to ___________

[A] Rs. 100.

[B] Rs. 30

[C] Rs. 70.

[D] Rs.10

Answer: Option [C]

26. The Reserve Bank of India is an example of a _____________.

[A] registered company.

[B] statutory company.

[C] chartered company.

[D] unlimited company.

Answer: Option [B]

27. The liability of a shareholder in a company limited by shares is ____________.

[A] unlimited

[B] limited by guarantee.

[C] limited to the unpaid value of shares subscribed by him.

[D] none of the above

Answer: Option [C]

28. An act is said to be ultra vires a company when it is beyond the powers ___________.

[A] of the company

[B] of the directors .

[C] of the directors but not the company

[D] conferred on the company by the Articles.

Answer: Option [A]

29. Which of the following companies need not have their own articles of Association?

[A] unlimited companies.

[B] companies limited by guarantee

[C] private companies limited by shares.

[D] public companies limited by shares.

Answer: Option [D]

30. The Articles of a company conflict with the Memorandum _______________.

[A] the Articles shall prevail.

[B] the Memorandum shall prevail

[C] the directors will resolve the conflict.

[D] the court will resolve the conflict.

Answer: Option [A]

31. A shareholder purchased in the open market shares of a company whose prospectus contained some misstatements. He ____________.

[A] can rescind the contract only but cannot claim damages

[B] can claim damages only but cannot rescind the contract

[C] has no remedy against the company.

[D] has remedy against the directors responsible for the issue of the prospectus

Answer: Option [C]

32. Underwriting means ___________.

[A] selling shares at a discount .

[B] purchasing property at less than market price.

[C] agreeing to purchase shortfall of shares in a company in case of under subscription

[D] offering new shares to outsiders

Answer: Option [C]

33. Share capital of a company means ______________.

[A] equity share capital .

[B] preference share capital

[C] equity and preference share capital .

[D] equity and preference share capital and debentures

Answer: Option [C]

34. The dividend on preference capital is paid _____________

[A] whenever there are profits

[B] only if there are profits.

[C] even if there are no profits.

[D] only when the directors recommend it

Answer: Option [D]

35. Shares can be issued ____________.

[A] at par.

[B] at discount.

[C] at premium.

[D] all of the above.

Answer: Option [D]

36. The debenture holders of a company are companys__________.

[A] owners

[B] creditors

[C] customers

[D] all of these.

Answer: Option [B]

37. A share certificate is required to be signed by_____________

[A] company secretary.

[B] two directors.

[C] two directors and company secretary

[D] all directors and company secretary

Answer: Option [C]

38. A secretary should have sound knowledge of_______________.

[A] company law.

[B] tax laws.

[C] labour laws.

[D] all of these.

Answer: Option [A]

39. Transmission of shares takes place in the following case_____________.

[A] sale of shares.

[B] theft of shares.

[C] operation of any law.

[D] all of these.

Answer: Option [C]

40. The dividend on preference capital is paid___________.

[A] whenever there are profits

[B] only if there are profits

[C] even if there are no profits.

[D] only when the directors recommend it

Answer: Option [D]

41. A private company ________issue deferred shares with disproportionatevoting rights

[A] can ony

[B] can

[C] cannot

[D] can with the prior approval of the government

Answer: Option [A]

42. When is a company said to have been registered?

[A] when it files the memorandum of association with the registrar if companies

[B] when it gets the certificate of incorporation

[C] when it gets the certificate of commencement of business

[D] when it actually starts its business

Answer: Option [A]

43. how many types of preference shares

[A] 8

[B] 7

[C] 6

[D] 5

Answer: Option [A]

44. The debenture holders of a company are companys____________.

[A] owners

[B] creditors

[C] customers

[D] all of these

Answer: Option [B]

45. A share certificate is required to be signed by__________.

[A] company secretary

[B] two directors

[C] two directors and company secretary

[D] all directors and company secretary.

Answer: Option [C]

46. Transmission of shares takes place in the following case

[A] sale of shares.

[B] theft of shares

[C] operation of any law.

[D] all of these

Answer: Option [C]

47. To enable a company to pay dividends, a special authority is ___________.

[A] not needed either in the memorandum or in the articles

[B] needed either in the memorandum or in the articles

[C] needed only in the memorandum

[D] needed only in the articles

Answer: Option [A]

48. According to the companies act, which one of the following companies can commence allotment of shares even before the minimum subscription is subscribed or paid?

[A] Charted company

[B] Private company

[C] Government company

[D] Public limited company

Answer: Option [B]

49. Share premium received by issuing shares can be used for ___________.

[A] payment of dividend

[B] issue of bonus share

[C] remuneration to management

[D] any business purpose

Answer: Option [B]

50. Under the companies act, which of the following powers can be exercised by the board of directors?

[A] Power to sell any of the companies undertaking

[B] Power to make call.

[C] Power to borrow money in excess of the paid up capital.

[D] Power to reappoint on auditor

Answer: Option [B]

51. The liability of shareholders of a public company is limited to the _________.

[A] paid up value of shares

[B] nominal value of shares

[C] extent of their private assets

[D] amounts called up.

Answer: Option [D]

52. Under the Indian Companies Act, 1956, a person can be a Director in ___________.

[A] 7 companies.

[B] 10 companies

[C] 20 companies

[D] 25 companies.

Answer: Option [C]

53. Investment in which of the following is most risky?

[A] equity shares

[B] preference shares

[C] debenture

[D] Land

Answer: Option [A]

54. Which of the following is not an ownership security?

[A] equity shares.

[B] debentures.

[C] preference shares.

[D] None of the above

Answer: Option [B]

55. In which of the following, interest and dividend is payable even if the company does not earn profit?

[A] equity capital

[B] preference capital.

[C] debentures

[D] bonds

Answer: Option [C]

56. Debentures cannot be _____________

[A] irredemable debentures.

[B] participating debentures

[C] registered debentures

[D] earear debbentures

Answer: Option [B]

57. The existence of a joint stock company is interrupted by ______________.

[A] the death of its members

[B] the death of its directors.

[C] the death or insolvency of its manigins; director

[D] none of these

Answer: Option [C]

58. When an existing company offers its shares for sale to the existing shareholders, it is known as_____________.

[A] private placing

[B] bonus issue

[C] rights issue

[D] offer for sale.

Answer: Option [C]

59. A ___________ is a combination of two companies to form a new company.

[A] merger

[B] public

[C] private

[D] private

Answer: Option [A]

60. Promoter is a person who__________.

[A] takes part in the incorporation of a company.

[B] is a director.

[C] is a relative of the managing director.

[D] works to siva publicity to the co.

Answer: Option [A]