CBSE Questions for Class 11 Commerce Business Studies Formation Of A Company Quiz 1 - MCQExams.com

A public company can adopt ________ in place of its own articles.
  • Memorandum of association
  • Articles of association
  • Table A
  • None of these
The companies are governed by the Companies Act _________.
  • 1956
  • 1936
  • 2013
  • 1856
Minimum number of members to form a public company is ________.
  • 5
  • 7
  • 12
  • 21
A Memorandum of Association should be signed by _______ persons in case of private company.
  • two
  • four
  • five
  • seven
MCA stands for ___________.
  • Ministry of Corporate affairs
  • Manager of Company Acts
  • Ministry of Corporate
  • None of the above Administration
Below mentioned are factors that have allowed small companies to act like they are big ones. Pick the right one _______________.
  • Competition
  • Economic development
  • Both a & b
  • Technology
A __________ is a person, who discovers the business opportunity.
  • secretary
  • promoter
  • shareholder
  • director
State the following statement is True or False:
Company promoters play significant role in the formation of a company.
  • True
  • False
Which of the following can be treated as the official signature of the company?
Rubber stamp
A common seal
Select correct answer from the options given below:
  • 1 - Yes

    2 - Yes
  • 1 - No

    2 - No
  • 1 - Yes

    2 - No
  • 1 - No

    2 - Yes
Documents to be presented for the registration of a company with the registrar are ____________.
  • the memorandum of the company
  • its articles
  • both a and b
  • nothing specified in Companies Act
Generally internal rules of the company are regulated in ________.
  • A.O.A.
  • M.O.A.
  • Partnership Deed
  • None of these
State the following statement is True or False:
A promoter can be an individual or a company.
  • True
  • False
As per Section 2(69) of the Companies Act, 2013, which of the following person can be treated as "Promoter"?
(I) Who has been named as such in a  prospectus or is identified by the company in the annual return referred to in Section 92. 
(II) Who has control over the affairs of the company, directly or indirectly whether as a shareholder, director or otherwise.
(III) In accordance with whose advice, directions or instructions the Board of Directors of the company is accustomed to act
(IV) Person who is acting in a professional capacity
  • (I) and (II) only
  • (II) and (III) only
  • (II), (III) and (IV) only
  • (I), (II), (III) of the above
State, with reasons, whether the following statements are True and False.
The objective of SEBI is to protect interest of the companies.
  • True
  • False
 If a company is registered on the basis of fictitious names, its incorporation is invalid.
  • True
  • False
Tick the correct answer. 
Every company must file Articles of Association.
  • True
  • False
The instrument appointing a proxy must be deposited with the company not less than _______ days before the meeting.
  • 7
  • 12
  • 21
  • 28
The number of business methods patents granted is ____________ compared to the number of patents applied for.
  • substantially smaller
  • slightly smaller
  • close to equal
  • equal
Which of the following is not a correct statement?
  • Memorandum states the objects while Articles provide the manner in which objects may be attained
  • Memorandum is the constitution whereas Articles are internal regulations
  • Articles are subordinate to the memorandum
  • Memorandum controlled by the Articles
Preliminary contracts are signed _________.
  • Before the incorporation
  • After incorporation but before capital subscription
  • After incorporation but before commencement of business
  • After commencement of business
When a person transacts with a company on matters which is beyond the power of the company, the person will be governed by the Doctrine of ______.
  • Management by Exception
  • Constructive Notice
  • Indoor Management
  • Self Management
The software company promoted by Nayayan Murthy is __________.
  • Wipro
  • Infosys
  • Satyam
  • HCL
A mission statement should be
a) Self-explanatory
b) Elaborate
c) Distinctive
d) Feasible 
  • (a) only
  • (a) and (b)
  • (a), (b) and (c)
  • (a),(c) and (d)
The strength of management depends largely on the relationship between __________.
  • the company's shareholders, board of directors, and the senior executive officers
  • shareholders and debenture holders
  • shareholders, debenture holders and employees
  • board of directors and the senior executive officers
A prospectus is issued by _________.
  • A private company
  • A public company seeking investment from public
  • A public enterprise
  • A public company
Minimum number of members to form a private company is  _______.
  • 2
  • 3
  • 5
  • 7
'Certificate of Incorporation' is issued ________.
  • before promotion of a company
  • after promotion of a company
  • before delivery of documents
  • after delivery of documents
Those who initiate formation of a company are called ___________.
  • underwriters
  • directors
  • promoters
  • None of these
State the following statement is True or False:
It is the promoters who conceive the idea of a company.
  • True
  • False
Every company having a paid-up share capital of Rs. _______ or more shall have full time secretary.
  • 2 lakhs
  • 20 lakhs
  • 2 crores
  • 20 crores
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