T.Y B.COM
SEMESTER - 6
BUSINESS LAW - II
MCQS :
• COMPANY LAW
• CLASSES OF COMPANIES
• INCORPORATION OF COMPANIES
• MEMORANDUM & ARTICLES OF ASSOCIATION
• PROSPECTUS
COMPANY LAW
1. The term company is defined under which sec of the Act?
(a) Sec 1 (3)
(b) Sec 2 (4)
(c) Sec 4 (2)
(d) sec 2 (20)
2. Property of the company belongs to
(a) Promoters
(b) Members
(c) Share holders
(d) Company
3. Which company shares can not be freely transferable
(a) Private Company
(b) Public Company
(c) Both (a) & (b)
(d) None of the above
4. Minimum number of members in case of public company
(a) 5
(b) 2
(c) 1
(d) 7
5. Minimum number of members in case of private company is
(a) 3
(b) 2
(c) 1
(d) 4
6. Maximum no. of members in case of private company is
(a) 200
(b) 50
(c) 150
(d) 100
7. Maximum no .of members in case of public company is
(a) 0
(b) unlimited
(c) 50
(d) 100
8. Liability of a member in case of a private company is
(a) Limited
(b) Unlimited
(c) Both (a) or (b)
(d) None of the above
9. Maximum no. of persons in case of partnership business
(a) 50
(b) 20
(c) 30
(d) 5
10. Minimum no. of Directors in case of a public company is
(a) 4
(b) 1
(c) 2
(d) 3
11. Minimum no. of Directors in case of private company is
(a) 3
(b) 2
(a) 1
(d) 4
12. The company's nationality is decided by its
(a) Shareholders
(b) Registered office
(c) Place at books of accounts are kept
(d) None of the above
13. The liability of members if company is limited by guarantee.
(a) Unpaid value of shares
(b) Guarantee amount
(c) Unlimited liability
(d) None of the above
14. The liability of members if company is limited by shares
(a) Unpaid value of shares
(b) Guarantee amount
(c) Unlimited liability
(d) None of the above
15. XYZ Company conducted an AGM on 1st Sept.2007. On that day due to fire accident in the hall. All shareholders died. Will the company will be in existence.
(a) Yes
(b) No
16. Company's owners are shareholders. So the company property belongs to the share holders. Do you agree with this statement?
(a) Yes
(b) No
17. Company will have fundamental rights.
(a) True
(b) False
18. XYZ Company shares are totally held by government. The company will be government company.
(a) True
(b) False
19. If the company failed to refund application money with in 130 days from the date of allotment of shares who will be personally liable.
(a) Company
(b) Directors
(c) Shareholders
(d) None of these
20. Transfer of shares in the partnership firm is
(a) Restricted
(b) Freely transferable
(c) Prohibited
(d) None of these
21. Generally Company liability is
(a) Limited
(b) Unlimited
(c) Situation does not arise
(d) None of the above
22. Generally partnership firm liability is
(a) Limited
(b) Unlimited
(c) Situation does not arise
23. Can the partners enter into the contract with the firm?
(a) Yes
(b) No
24. Partners are ............ of the firm.
(a) Owners
(b) Employers
(c) Agents
(d) None of the these
25. XYZ private company had reduced to a single member and continued business more than 6 months. The company's liability will be.
(a) Limited
(b) Unlimited
(d) None of the above
26. In the case of partnership firm Audit is
(a) Compulsory
(b) Optional
(c) None of the above
27. In the case of Company Audit is
(a) Compulsory
(b) Optional
(c) None of the above
28. X Company is holding majority of shares in Y company. Will X and Y companies will be the same.
(a) Yes
(b) No
29. X, is a director of X Company and X is also a director of Y Company this means X Co. and Y Co. both are same
(a) True
(b) False
30. Members of a company can enter contract with the company
(a) True
(b) False
31. Generally rights and obligations of the company are regulated in
(a) A.O.A
(b) M.O.A
(c) Partnership deed
(d) None of these
32. Generally rights and obligations of the Partnership firm are regulated in
(a) A.O.A
(b) M.O.A
(c) Partnership deed
(d) None of these
CLASSES OF COMPANIES
1. A company is named as govt. company if it is holds.......... % of paid up share capital
(a) more than 30
(b) more than 40
(c) more than 50
(d) None
2. Which companies are exempted to add "Ltd" or "Pvt Ltd" at the end of their name
(a) Private
(b) Govt
(c) Defunct
(d) Association not for profits
3. Central Government permission is required in case of conversion of ............. Company.
(a) Private to public
(b) Public to private
(c) Both (a) or (b)
(d) None of the above
4. With in how many days prospectus or statement in lieu of prospectus should file with ROC
(a) 30
(b) 20
(c) 40
(d) 50
5. ............. % of shares should be held by a company in another company so as to become subsidiary
(a) more than 40
(b) more than 30
(c) more than 20
(d) more than 50
6. Liability under .............. sec. may be imposed only if it is proved that the companies business has been carried on with a view to defraud the creditors.
(a) 543
(b) 542
(c) 541
(d) 540
7. According to which sec. name of the company should end with "Ltd" or "Pvt Ltd"
(a) 10
(b) 11
(c) 12
(d) 13
8. The companies which are formed under special charter granted by the king or queen of England are called ...........
(a) Statutory companies
(b) Registered companies
(c) Chartered companies
(d) None of these
9. The companies which are formed under special Act. Those companies are called as
(a) Chartered companies
(b) Statutory Companies
(c) Registered companies
(d) None of these
10. The companies which are formed under companies Act, 1956. They will be called as
(a) Chartered companies
(b) Statutory companies
(c) Registered companies
(d) None of these
11. If the guarantee Co. having no share capital the liability of shareholders will be
(a) To the extent of guarantee
(b) Unpaid value of shares
(c) Unlimited
(d) None of the above
12. If the guarantee Co. having share capital the liability of shareholders will be
(a) Guarantee + unpaid value of shares
(b) Unpaid value of shares
(c) Unlimited
(d) None of the above
13. If a company which is formed with unlimited liability wants to convert to limited liability then it should pass
(a) Ordinary resolution
(b) No need
(c) Special resolution
14. Transfer of shares in case of private company is
(a) Prohibited
(b) Restricted
(c) Freely transferable
(d) None of these
15. Maximum members in case of private company
(a) 100
(b) 200
(c) 75
(d) None of these
16. Managing director will be counted as .......... while calculating maximum limit in case of private company.
(a) Member
(b) Employee
(c) Shareholder
(d) None of these
17. Can private company go for public issue?
(a) Yes
(b) No
18. Can private company accept deposits from the public?
(a) No
(b) Yes
19. Accepting of deposits from public in case of private company is
(a) Prohibited
(b) Restricted
(c) Acceptable
(d) None of these
20. Invitation to public offering shares or debentures in case of private company
(a) Prohibited
(b) Restricted
(c) Acceptable
(d) None of these
21. Y pvt. Co. is subsidiary of X Co. which is a public Company? Mention Y is a
(a) Private Co.
(b) Public Co.
(c) Government Co.
(d) None of these
22. Transfer of shares in the case of public company is
(a) Freely transferable
(b) Prohibited
(c) Restricted
(d) None of these
23. Public Company and Public Sector Company both the companies are same.
(a) False
(b) True
24. XYZ Co. 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
(b) Private Company
(c) Public Company
(d) None of these
25. XYZ Co. is having 15% share capital held by X Company and 50% held by Central Government and 10% held by State Government and 25% held by other people then that company will be
(a) Government Company
(b) Private Company
(c) Public Company
(d) None of these
26. XYZ Company is a Government Company and X Co. is a subsidiary of XYZ Co. Then X Co. will be
(a) Public Company
(b) Private Company
(c) Government Company
(d) None of these
27. Every Government Company may be a Public Company but every public company need not be government Company. Do you agree with this statement
(a) Yes
(b) No
28. X Co. having control on Board of Directors of Y Co. Can we say that Y Co. is subsidiary of X Co.
(a) Yes
(b) No
29. Private company can allot shares without receiving minimum subscription?
(a) Yes
(b) No
30. Public company can allot shares without receiving minimum subscription?
(a) Yes
(b) No
INCORPORATION OF COMPANIES
1. How many members should sign the MOA in case of public company ...........
(a) 1
(b) 3
(c) 5
(d) 7
2. How many members should sign the MOA in case of private company .............
(a) 1
(b) 2
(c) 3
(d) 4
3. Private company can start its business immediately after the issue of
(a) Certificate of commencement of Business
(b) Certificate of Incorporation
(c) Both
(d) None of the above
4. Public company Should start business only after getting certificate of
(a) Incorporation
(b) Commencement of business
(c) None of these
MEMORANDUM & ARTICLES OF ASSOCIATION
1. The doctrine of indoor management is an ............ to the doctrine of constructive notice
(a) Exception
(b) Extension
(c) Alternatively
(d) None of the above
2. The doctrine of ............ does not apply to acts void ab initio.
(a) Ultra virus
(b) Intra virus
(c) Indoor management
(d) constructive notice
3. A company can change its name at its own discretion by passing..............
(a) Ordinary resolution
(b) Special resolution
(c) Boards resolution
(d) None of the above
4. Any change in the address of the registered office must be communicated to the registrar with in:
(a) 15 days
(b) 1 Month
(b) 30 days
(d) 12 months
5. An act ultra vinus the directors can be rectified if it is not utra vires
(a) the articles
(b) the memorandum
(c) None of the above
6. The lending of funds ultra vires, the company has no rights
(a) under the company's Act
(b) contract Act
(c) under equity
(d) None of the above
7. In how many days did the company have its registered office after incorporation
(a) 40
(b) 10
(c) 20
(d) 15
8. In case of forgeries acts done in the name of the company are
(a) Void ab initio
(b) Valid
(c) Void
(d) None of the above
9. Signature of memorandum and articles should be done by ............ number of persons in case of public company
(a) 7
(b) 5
(c) 15
(d) None of these
10. Signature of memorandum and articles should be done by ............... number of persons in case of private company
(a) 3
(b) 4
(c) 2
(d) None of these
11. Can a company sign on behalf of a person in memorandum and articles
(a) Yes
(b) No
12. Can a Minor be a subscriber
(a) Yes
(b) No
13. Can Foreigners be subscriber
(a) Yes
(b) No
14. In the MOA there are 6 classes. We can alter all clauses expect one clause. What is that clause?
(a) Objects clause
(b) Name clause
(c) Association clause
(d) None of these
15. If any body wants to file a case against the company they should file at what place
(a) Company
(b) Registered Office
(c) BOD
(d) Books of accounts
16. A company must have a registered office from the ............... The day after its incorporation.
(a) 15
(b) 30
(c) 45
(d) 60
17. Which of the following need not have MOA
(a) Public company
(b) Private company
(c) Government company
(d) Statutory Corporation
18. For changing name of a company Central Govt. permission must be taken
(a) Yes
(b) No
19. If the name of the company is identical with or similar to an existing company then which resolution should be passed to change name
(a) Ordinary resolution
(b) Special Resolution
20. Alteration of articles must be done only by passing
(a) Special resolution
(b) Ordinary resolution
21. Ultra vires means
(a) Beyond the power
(b) With in the power
(c) Both
(d) None of the above
22. Ultra vires loans granted by the company are
(a) Void
(b) Voidable
(c) Valid
(d) None of the above
23. ............ is the charter of a company.
(a) Memorandum
(b) Articles
(c) Both (a) and (b)
(d) None of the above
PROSPECTUS
1. Private Company need not issue prospectus
(a) No
(b) Yes
2. Prospectus is required to be issued when right issue are made
(a) No
(b) Yes
3. Prospectus is required to be issued when issue is for Employees under Employee stock option scheme
(a) No
(b) Yes
4. When there is a untrue statement in a prospectus who can sue
(a) Subscribed in primary market
(b) Subscribed in secondary market
(c) Rights issue
(d) None of the above
5. Definition of prospectus was given under which sec.
(a) 34
(b) 32
(c) 30
(d) 28
6. Which one of the following has a right to claim compensation for any loss due to miss-statement in prospectus
(a) Secondary Market
(b) Purchasing shares in Primary Market
(c) Subscribers to memo.
(d) All the above
7. Minimum ............... months of imprisonment will be imposed in case of issue of prospectus with untrue statements
(a) 3
(b) 6
(c) 12
(d) 9
8 .............. includes an engineer, valuationer, accountant
(a) Promoter
(b) Auditor
(c) Expert
(d) Director
9. ............... Prospectus were issued in case securities were issued in stages
(a) Deemed
(b) Shelf
(c) Red herring
(d) None of the above
10. ........... prospectus were issued in order to test the market before finalizing issue size / price.
(a) Shelf
(b) Deemed
(c) Red herring
(d) None of the above
11. When there is a untrue statement in the prospectus. The shareholder who subscribed in secondary market can sue the company
(a) Yes
(b) No
12. When there is any untrue statement in the prospectus. The shareholder who was a subscriber to the memorandum can sue the company
(a) No
(b) Yes
13. Because of Misrepresentation in prospectus an expert will be criminally liable
(a) No
(b) Yes
14. What is punishment for directors, promoters and other persons for fraudulent Misrepresentation in prospectus
(a) Amount involved in fraud
(b) Minimum 6 months
(c) Both of the above
(d) None
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