MCQExams
0:0:1
CBSE
JEE
NTSE
NEET
Practice
Homework
×
CBSE Questions for Class 11 Commerce Business Studies Formation Of A Company Quiz 3 - MCQExams.com
CBSE
Class 11 Commerce Business Studies
Formation Of A Company
Quiz 3
The rules regarding internal management are given in the ______.
Report Question
0%
Memorandum of Association
0%
Articles of Association
0%
Table A
0%
All of above
Explanation
Articles of Association are the rules regarding internal management of a company. These rules are subsidiary to the Memorandum of Association and hence, should not contradict or exceed anything stated in the Memorandum of Association.
Memorandum is the _______ document of a company.
Report Question
0%
secondary
0%
primary
0%
sub-ordinate
0%
Non of these
Explanation
Memorandum is the primary document of a company.Memorandum of Association is a document of prime importance for a company. It depicts the objectives, extent of authority, competency, liabilities and legal rights of the company. The Memorandum acts as a legal code or constitution for a company and regulates the relationships between the company and its shareholders, investors, beneficiaries and other members.
The domicile clause of the Memorandum of Association states about the ______ of a company.
Report Question
0%
capital
0%
liability
0%
registered address
0%
None of these
Explanation
The second clause of the MOA, the 'domicile' clause specifies the location of the company's registered office. The domicile clause will not exactly contain the address of the registered office, but the state or union territory in which the registered office of the company is located.
The ________ is primary and supreme document of the company.
Report Question
0%
Articles of Association
0%
prospectus
0%
Memorandum of Association
0%
All of above
Explanation
The Memorandum of Association is primary and supreme document of the company. Memorandum of Association is a document of prime importance for a company. It depicts the objectives, extent of authority, competency, liabilities and legal rights of the company. The memorandum acts as a legal code or constitution for a company and regulates the relationships between the company and its shareholders, investors, beneficiaries and other members.
The aims and objectives of a company are stated in the ______ clause of the Memorandum of Association.
Report Question
0%
Name
0%
Object
0%
Domicile
0%
None of these
Explanation
The
object clause
of the
Company
is the third
clause
of the memorandum of association of any
Company
stating the
objects
i.e. the business/purpose for which the
Company
is incorporated and any other matter considered necessary in furtherance thereof.
A Memorandum of Association (MOA) is a legal document prepared in the formation and registration process of a limited liability company to define its relationship with shareholders. The MOA is accessible to the public and describes the company’s name, physical address of registered office, names of shareholders, and the distribution of shares.
A Memorandum of Association is a document of prime importance for a company. It depicts the objectives, extent of authority, competency, liabilities, and legal rights of the company. The memorandum acts as a legal code or constitution for a company and regulates the relationships between the company and its shareholders, investors, beneficiaries, and other members.
Hence, option (B) is the correct answer.
______ states the relation of a company with outsiders.
Report Question
0%
Articles of association
0%
Memorandum of association
0%
Object
0%
Table A
Explanation
A Memorandum of Association (MOA) is a legal document prepared in the formation and registration process of a limited liability company to define its relationship with shareholders. The MOA is accessible to the public and describes the company’s name, physical address of registered office, names of shareholders and the distribution of shares.
State the following statement is True or False:
The clause of Memorandum that fixes the area of activities of the company is object clause.
Report Question
0%
True
0%
False
Explanation
True
The objective clause requires you to summarize the main objectives for establishing the company with reference to the requirements for shareholding and use of financial resources. You also need to state ancillary objectives; that is, those objectives that are required to facilitate the achievement of the main objectives. The objectives should be free of any provisions or declarations that contravene laws or public good.
State the following statement is True or False:
The document which determine the scope of the business operations of a company is the Memorandum of Association.
Report Question
0%
True
0%
False
Explanation
Memorandum of Association is a legal document which is prepared in the formation and registration process of a limited liability company. It is called the charter of the company.
Memorandum of Association defines the company’s relationship with its shareholders. It is the most important document of a company as it states the objects of the company for which it is formed. It also contains the powers of the company within which it can act.
The document which defines relationship between company and outsider.
Report Question
0%
Articles of Association
0%
Memorandum of Association
0%
Table A
0%
None of these
Explanation
A Memorandum of Association (MOA) is a legal document prepared in the formation and registration process of a limited liability company to define its relationship with shareholders. The MOA is accessible to the public and describes the company’s name, physical address of registered office, names of shareholders and the distribution of shares.
An almost unalterable document of the joint stock company:
Report Question
0%
Articles of Association
0%
Memorandum of Association
0%
Table A
0%
All of above
Explanation
The Memorandum of Association is also called the Charter of the company as it is the company's principle document it is almost unalterable document.
State the following statement is True or False:
A subordinate document to the Memorandum of Association is the Articles of Association.
Report Question
0%
True
0%
False
Explanation
True
Memorandum of Association (MOA) is the main, compulsory document required for the incorporation of the company. It must be registered with the ROC (Registrar of Companies) at the time of incorporation. It lays down the objects, scope, powers and area of operation of the company, all of which the company can’t transgress. Thus, it lays down it’s the limits of the company.
Articles of Association (AOA) is a secondary document that is constituted only after the MOA. It lays down the rules and regulations for the administration and management of the company. The Articles lay down the right, responsibilities, powers, duties, etc of the members along with information regarding the accounts and audit of the company.
It follows the MOA and can’t contradict it. It is easier to amend than MOA which can be done without any restrictions. It can be amended retrospectively in the Annual General Meeting as per the choice of the company.
State the following statement is True or False:
The document which is a charter or constitution of a company is the Memorandum of Association.
Report Question
0%
True
0%
False
Explanation
True
An important step in the formation of a company is to prepare a document called Memorandum of Association. It is the charter of the company and is very important document as it contains the basic conditions on which the company is incorporated.
The Memorandum contains the name, registered office, main and other objects of the company, liability of the members and the authorized capital of the company. The main purpose of the memorandum is to limit the scope of activities and powers of the company. Thus, any act outside the Memorandum is ultra-vires the company. Such an act is not enforceable and directors involve personal liability for it.
In case of a private company, Memorandum must be signed by at least _____ persons.
Report Question
0%
two
0%
four
0%
six
0%
eight
Explanation
In case of a private company, Memorandum must be signed by at least 2 persons. And in case of public company, at least 7 persons.
The word company is derived from word.
Report Question
0%
French
0%
Latin
0%
German
0%
Indian
Explanation
The word company is derived from the word com. It means together. Moreover, panis means bread. In the past, the business meetings, for most of the time, were conducted on festive occasions. It was something like
meeting together as a treat of bread to earn bread.
Thus, the correct answer is
B.
State the following statement is True or False:
Memorandum of association is the Charter of a company.
Report Question
0%
True
0%
False
Explanation
An important step in the formation of a company is to prepare a document called Memorandum of Association. It is the Charter of the company and is a very important document as it contains the basic conditions on which the company is incorporated.
The Memorandum contains the name, registered office, main and other objects of the company, liability of the members, and the authorized capital of the company. The main purpose of the memorandum is to limit the scope of activities and powers of the company. Thus, any activities outside the Memorandum are ultra-vires the company. Such an act is not enforceable and directors involve personal liability for it.
Hence the statement is true.
The nominal value of qualification shares of directors must not exceed Rs._________.
Report Question
0%
2000
0%
5000
0%
1000
0%
1500
Explanation
The Article of Association of a company may require the directors of the company to hold some minimum shares at the time of his appointment within certain time prescribed under the Companies Act. The nominal value of the qualification shares shall not exceed Rs 5000.
Select the correct option given below :
A person cannot act a Managing Director of more than________companies.
Report Question
0%
two
0%
four
0%
six
0%
eight
Explanation
A Managing Director means a director who, by virtue of an agreement with the company or by the resolution passed by the company in general meeting or Articles of Association is entrusted with substantial powers of management which would not otherwise be exercisable by him and includes a director occupying the position of a managing director. A person cannot act as a managing director of more than two companies.
Proxy must be a member of the company.
Report Question
0%
True
0%
False
Explanation
This statements is a False due to the following reasons:
(i) Proxy is a person appointed by a member of a public company to attend and vote on his behalf in the General Meeting.
(ii) The representative of an absent member is called proxy.
(iii)proxy is an instrument by which the appointment of a person is made i.e. proxy form atleast 48 hours before the meeting.
(iv) According to the provision of the Act a notice convening meeting must state that a member entitled to attend and vote at a meeting is entitled to appoint a proxy to attend and vote instead of himself and proxy need not be a member.
(v) A proxy is not authorised to speak at meeting.
So a proxy need not be a member of the company.
The qualification share must be purchased by the Directors within ______months from his appointment.
Report Question
0%
2
0%
4
0%
8
0%
6
Explanation
The article of association of a company may require the Directors of that company to hold some minimum shares at the time of his appointment within such a time limit as prescribed under section 270 of the companies act 1956. This minimum shares is known s 'Qualification Shares'.
If the Directors doesn't hold that share qualification at the time of his appointment then he must require them within two months of his appointment.
State the following statement is True or False:
A director can remain absent from three consecutive board meetings without taking leave of absence from the board.
Report Question
0%
True
0%
False
Explanation
This statement is False because of the following reasons:
(i) Under such circumstance , the director shall take 'leave of absence' from the board meeting.
(ii) As per section 283(9) of the Companies (Amendment) Act,1988 states,"If a director remains absent for consecutive three board meeting without taking leave of absence from the board" his directorship gets terminated.
(iii) If a director has already remained absent at two consecutive board meeting without prior leave of absence from the board, he must obtain leave of absence from the board if he want to remain absent at the third board meeting also.
(iv) If he fails to take prior leave of absence for the third board meeting,his directorship gets automatically terminated.
(v) Hence, a director cannot remain absent from three consecutive board meeting without taking leave of absence from the board.
Select the correct option given below :
The first auditors of the company are appointed by the _________.
Report Question
0%
Secretary
0%
Promoters
0%
Manager
0%
None of these
Explanation
The first directors of the company are usually appointed by the promoters in the manner laid down by the company's articles. The first directors can hold office only till the first annual general meeting of the company when they will be replaced by directors appointed by the company at this meeting.
Hence, option (B) is the correct answer.
An auditor is appointed for a period of _________.
Report Question
0%
one year
0%
ten year
0%
five year
0%
two year
Explanation
After the incorporation of a company in the first annual general meeting an auditor must be appointed by the board of directors. the auditor will typically hold term till the conclusion of 5 years . The appointment of an auditor can also be made for a period of 1 year renewable at each annual general meeting.
Proxy has no right to speak at the meeting.
Report Question
0%
True
0%
False
Explanation
This statement is True because of the following reasons :
(i) Proxy means a person appointed by a member of a public limited company to attend and vote on his behalf at the meeting.
(ii) A proxy can be an outsider.
(iii) Under Section 176 of the Companies Act, 1956, a proxy cannot speak in-the meeting.
(iv) He is not allowed to take part in the discussion at the meeting.
(v) He is appointed as a substitute of a member only for the purpose of voting on behalf of a member.
(vi) A proxy can vote only when a poll is taken.
(vii) When a poll is taken, a proxy's vote is a valid vote.
(viii) The information about the appointment of a proxy must be given to the company in a prescribed form 48 hours before the meeting.
(ix) Hence, a proxy has no right to speak at the meeting.
State the following Statement is True or False:
The power of granting extension of time for holding the Annual General Meeting is vested in the Registrar of Companies.
Report Question
0%
True
0%
False
Explanation
This Statement is True because of the following reasons:
(i) As per section 166 of the Companies Act, 1956, the company is required to hold its Annual. General Meeting for the financial year ending on 31st march on or before 30th September.
(ii) If for any reason, the company is unable to conduct the meeting, the, company secretary has to write to the Registrar of Companies requesting for extension in time for holding the Annual General Meeting.
(iii) The company secretary while corresponding to the Registrar of companies has to assure the Registrar of Companies that all necessary formalities would be completed and the meeting would be conducted in the extended time.
(iv) The company secretary gives an undertaking on behalf of the company, of course, to pay the penalty for the delay.
Provisions relating to this are now dealt by the Companies Act ,2013.
State the following statement is True or False:
The Registrar of Companies is appointed by the State Government.
Report Question
0%
True
0%
False
Explanation
This statement is False, due to the following reason:
(i) The Registrar of companies is an officer appointed by the Central Government for each state.
(ii) He is being appointed to register, supervise and co-ordinate to the matter relating to the companies registered under the Companies Act,1956.
(iii) He has control over the various activities carried by the companies in his state.
(iv) The Registrar is a recognised statutory authority under the Companies Act.
(v) He has to see that companies,operate within the legal limits and comply to various legal formalities.
(vi) Every company has to submit certain documents with Registrar to obtain incorporation certificate and business commencement certificate.
Provisions relating to registrar are now dealt by the Companies Act ,2013.
State the following statement are True or False.
Secretary gives information to the directors.
Report Question
0%
True
0%
False
Explanation
This statement is True,due to the following reasons:
(i) The Directors are elected representatives of the shareholders.
(ii) The Company Secretary is an executive officer of a Joint Stock Company.
(iii) The decision taken by the Board of Directors are implemented by the Secretary.
(iv) The Secretary acts as link between the Directors and other management personal and staff.
(v) The Secretary provides assistance and guidance to the directors while discharging their duties and responsibilities.
(vi) The Secretary is responsible to inform the directors regarding Board Meeting .Hence he/she has to send notice,agenda and other information to all directors of the company.
(vii) The Secretary has to hold the meeting of directors from time to time as per the permissions of the Companies Act.
(viii) So,the Secretary has to perform various duties toward the directors of the company.
(ix) The Secretary is therefore said to be the ears,eyes,hand and mouth - piece of he 'Board'.
State the following Statement are True or False:
Annual Return must be filed with the Registrar of Companies within 60 days from the Annual General Meeting.
Report Question
0%
True
0%
False
Explanation
This Statements is True because of the following reasons:-
(i) It is a document that must be filed with the Registrar of Companies at the end of each financial year.
(ii) The secretary has to file Annual Return along with the audited Balance Sheet, Profit and Loss account and Auditor's Report with the Registrar within 60 days from the date of holding the Annual General Meeting.
The contents of the Annual Return of a company as given in Part I of Schedule of the Companies Act, 1956 are as under:
(a) The address of the registered office of the company.
(b) The name and address of any place outside India where any part of the register of members or register of debenture holders is kept under the provisions of the Companies Act.
(c) The details of the breakup of the share capital and debentures of the company as existed on the date of the last Annual General Meeting.
(d) Particulars of the total amount of indebtedness of the company as existed on the date of the last Annual General Meeting of the company.
(e) Particulars of directors, managers and secretaries.
(f) The list of the past and present members and debenture holders.
(g) The Annual Return is to be filled in the prescribed form as given in part II of the schedule mentioned above.
Now, Companies Act ,2013 deals with provisions relating to General Meeting.
Select the correct option given below:
Return of allotment must be filed with the Registrar of companies within____ days from the date of allotment.
Report Question
0%
10
0%
20
0%
30
0%
40
Explanation
According to section 39 of companies act 2013 :if the minimum amount has not been subscribed and the sum payable is not received within 30 days from the date of issue of the prospects or such other period as may be specified by the securities and exchange, the amount received under sub section (1)shall be returned within such time and manner as may be prescribed
Choose the correct option from the following.
Report Question
0%
Regular buyers generally accept material on credit.
0%
Regular buyers generally do not accept material on credit.
0%
Regular buyers generally do not maintain good relations with the seller company.
0%
Regular buyers generally avoided by the seller company.
Explanation
Regular buyers generally accept material on credit because continuously purchasing of material from particular seller builds a bridge of trust between both the parties.
Company is defined under which section of the companies act?
Report Question
0%
Section 3(1)
0%
Section 4(2)
0%
Section 2(4)
0%
Section 1(3)
Explanation
The company is defined under which section 3(1).
0:0:1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
0
Answered
0
Not Answered
0
Not Visited
Correct : 0
Incorrect : 0
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Practice Class 11 Commerce Business Studies Quiz Questions and Answers
<
>
Support mcqexams.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page
