MCQExams
0:0:1
CBSE
JEE
NTSE
NEET
Practice
Homework
×
CBSE Questions for Class 11 Commerce Business Studies Formation Of A Company Quiz 4 - MCQExams.com
CBSE
Class 11 Commerce Business Studies
Formation Of A Company
Quiz 4
State the following statement is True or False:
Company secretary has to file copy of special resolution with the Registrar of Companies.
Report Question
0%
True
0%
False
Explanation
This statement is True due to the following reasons :
(i) Registrar of companies is appointed by the Central Government to have statutory control over the Companies.
(ii) Every company has to submit certain documents with Registrar to obtain incorporation and business commencement certificate.
(iii) The Registrar of Companies has to perform function like, Incorporation of Companies, Registration of Documents, etc.
(v) The Secretary has to make correspondence with the Registrar of Companies for filing various documents.
(v) The Secretary has to write letters to the Registrar, on various issues, one such is 'Filing Special Resolution'.
(vi) Under Section 192 of the Companies Act 1956; whenever a special resolution is adopted at a general meeting, a copy of the resolution is to be-filed by the Secretary with the Registrar of Companies. If default is made in Complying with the filling of special resolution, the company and defaulting officer shall be punishable with fine.
(vii) It should be filed within 30 days of it being adopted.
(viii) He also has to enclose the requisite filing fees.
Provisions relating to this are now dealt by the Companies Act ,2013.
Mission statement is derived from _____________.
Report Question
0%
Vision statement
0%
Laws and statues
0%
Company policies
0%
Memorandum of Association
Explanation
A Mission Statement is concerned with the company's present, its objectives and its approach to reach those objectives.
A company's mission statement is derived from its vision statement because it is through a vision statement that a company sees itself in future. Without vision, a company cannot derive its mission statement.
A preliminary contract refers to a contract made on behalf of a company____________________.
Report Question
0%
Before the incorporation of the company
0%
After the incorporation of the company
0%
After the company obtains the certificate to commence business
0%
After incorporation but before obtaining the certificate of commencement of business
Explanation
During promotion of the company, the promoter of the company enters into various contracts with the third parties , such contacts are not binding on the company after it is incorporated.
All such contracts which are entered by the promoter before incorporation are called preliminary contract.
Who/what appointed the first directors of a company?
Report Question
0%
The shareholders in general meeting
0%
The Registrar of Companies
0%
The articles of association
0%
The promoters
__________ includes
the rules and regulations on which the company's internal affairs are to be done.
Report Question
0%
Articles of association
0%
Memorandum of association
0%
Prospectus
0%
All of the above.
Explanation
The Articles of Association or AOA are the legal document that along with the memorandum of association serves as the constitution of the company. It is comprised of rules and regulations that govern the company’s internal affairs.
The articles of association are concerned with the internal management of the company and aims at carrying out the objectives as mentioned in the memorandum. These define the company’s purpose and lay out the guidelines of how the task is to be carried out within the organization. The articles of association cover the information related to the board of directors, general meetings, voting rights, board proceedings, etc.
The return as to allotment must be filed within _____ days.
Report Question
0%
10
0%
20
0%
30
0%
60
Explanation
Section 39 (4) of the Companies Act 2013 says, “Whenever a company having a share capital makes any allotment of securities, it shall file with the Registrar a return of allotment in such manner as may be prescribed”. Rule 12 of the Companies (Prospectus and Allotment of Securities) Rules 2014 prescribes this manner.
Whenever a company having a share capital makes any allotment of its securities, the company shall, within thirty days thereafter, file with the Registrar, a return of allotment in Form PAS – 3, along with the fee as specified in the Companies (Registration Offices and Fees) Rules, 2014.
Memorandum of association contains which of the following?
Report Question
0%
Place of registered office of the company
0%
Objective of the company
0%
Amount of registered share capital
0%
All of the given options.
Which among the following is the vision of ICSI?
Report Question
0%
"Promoting global excellence"
0%
"To be a global leader in promoting good corporate governance"
0%
"Partners in Nation building"
0%
"Building corporate responsibility"
Explanation
Every enterprise has to have a vision and mission for its progress. By vision we mean an enterprise wants to be. It is the future of an enterprise and mission is to reach that vision. Among the statements, 'to be global leader for promoting good corporate governance' is the vision statement of ICSI.
Which of the following is not an example of mission statement?
Report Question
0%
NIKE - To bring inspiration and innovation.
0%
FACEBOOK - Power to share and make the world open and connected.
0%
GOOGLE - To organize the world's information.
0%
ICSI - To be a global leader in promoting good corporate governance.
Explanation
A Mission Statement is concerned with the company's present, its objectives and its approach to reach those objectives.
Vision statement refers to where an organisation looks itself into future asking questions - where it wants to go? and how it will be achieved?etc. ICSI's 'To be a global leader in promoting good corporate governance' is a vision statement because it states where the organisation wants to go.
The road-map of a company future is ___________.
Report Question
0%
Mission
0%
Vision
0%
Business Module
0%
None of the above
Explanation
A
Roadmap
for Making
Business
Strategy Actionable.
Businesses
need a framework for guiding the mobilization of an organization around its strategic plan. A “
roadmap
” enables everyone in the
business
to clearly understand each action and what decisions need to be made, who needs to make them and when.
Every company is ____________ entity.
Report Question
0%
An independent
0%
A dependent
0%
A social
0%
None of above
Explanation
Independent entity
such as Customer in both
examples
and Account in the first
example
, is an
entity
where each occurrence (instance) can be found using only attributes that it owns, such as a Customer ID.
The capital raised by issue of equity shares is known as ____________.
Report Question
0%
Owner's funds
0%
Retained earnings
0%
Preference capital
0%
Bonus shares
Explanation
The capital raised by equity shares is known as owner's funds . The capital employed in a company is the difference between value of assets and value of liabilities.
Wipro was founded in _______.
Report Question
0%
1948
0%
1958
0%
1945
0%
1968
Explanation
Wipro is a multinational corporation of India. It is mainly a company based on information technology and business process services. Wipro was founded in 1945. Headquarter of Wipro is in Bangalore.
Who conceives the idea of a business?
Report Question
0%
Promoters
0%
Directors
0%
Auditors
0%
None of the above
Explanation
A promoter conceives the idea for setting up a particular business and performs various formalities required to start a business.
Which of the following refers to a contract by which one party promises to save the other from loss caused by him by the conduct of the Promisor himself, or by the conduct of any other person?
Report Question
0%
Contract of guarantee
0%
Contract of surety
0%
Contract of indemnity
0%
Contract of liability
Explanation
The term Indemnity literally means “Security against loss". In a contract of indemnity one party – i.e. the indemnifier promise to compensate the other party i.e. the indemnified against the loss suffered by the other.
The definition of a contract of indemnity as laid down in Section 124 – “A contract by which one party promises to save the other from loss caused to him by the conduct of the promisor himself, or by the conduct of any other person, is called a contract of indemnity.
Under a contract of indemnity, liability of the promisor arises from loss caused to the promisee by the conduct of the promisor himself or by the conduct of other person.
Which company was formed by seven engineers with a capital of Rs. 10000____________.
Report Question
0%
Asian Paints
0%
Bharti Airtel
0%
Infosys
0%
None of the above
Explanation
Infosys was conceived in 1981 in Pune by Narayan Murthy, Nandan Nilekani, N S Raghavan, S Gopalakrishnan, S D Shibulal, K Dinesh and Ashok Arora, all former employees of Patni Computer Systems. The company was started with meager initial capital of Rs 10,000 and was named Infosys Consultants.
Who stands in the fiduciary position of the company?
Report Question
0%
Directors
0%
Promoters
0%
Auditors
0%
None of the above
Explanation
The promoter stands in a fiduciary relationship to the company and its Shareholders, as well as any co-promoters. Promoters have a fiduciary duty to act in good faith and with utmost honesty, and they must always put the interests of the company and its shareholders above their own interests.
Casual vacancy occurs only when ________.
Report Question
0%
Direction dies
0%
Declared incompetent
0%
Resigns
0%
All of the above
Where you want your business to be in $$10$$ years time. This can be termed as _________.
Report Question
0%
Mission statement
0%
Vision statement
0%
Statement of purpose
0%
Memorandum of understanding
Explanation
The vision statement is an aspirational description of what an organisation would like to achieve or accomplish in mid-term or long-term future It is intended to serve as a clear guide for choosing current and future goals of action.
Hence, option (B) is the correct answer.
An act is said to be ultra vires Company when it is beyond the powers___________.
Report Question
0%
Of the Company,
0%
Of the Directors,
0%
Of the Directors but not the Company,
0%
Conferred on the Company by the Articles.
Explanation
In corporate law, ultra vires describe acts attempted by a corporation that are beyond the scope of powers granted by the corporation's objects clause, articles of incorporation, or in a clause in its Bylaws, in the laws authorizing a corporation's formation, or similar founding documents.
Hence, option (D) is the correct answer.
A qualified Company Secretary is needed to be appointed as secretary to a company only on the basis of the_______________.
Report Question
0%
Business of the company
0%
Paid-up capital of the company
0%
Location of the company
0%
Listing of the company on any stock exchange
Explanation
companies having paidup capital of Rs 5 crores or more has to mandatorily have a Company Secretary in whole time employment.
If authorized by the____________ a company may received from a shareholder the amount remaining unpaid on shares, even though the amount has not been called up which is known as calls-in-advance.
Report Question
0%
Memorandum of Association (MOA)
0%
Articles of Associtaion (AOA)
0%
Prospectus
0%
Securities Exchange Board of India.
Explanation
The Articles of Association or AOA are the legal document that along with the memorandum of the association serve as the constitution of the company. It is comprised of rules and regulations that govern the company’s internal affairs.
The articles of association are concerned with the internal management of the company and aim at carrying out the objectives as mentioned in the memorandum.
The articles of association are comprised of the following provisions:
•
Share capital, call of share, forfeiture of share, conversion of share into stock, transfer of shares, share warrant, surrender of shares, etc.
•
Directors, their qualifications, appointment, remuneration, powers, and proceedings of the board of directors meetings.
•
Voting rights of shareholders, by poll or proxies and proceeding of shareholders general meetings.
•
Dividends and reserves, accounts and audits, borrowing powers, and winding up.
Hence, B is the correct option.
A company may allot fully paid shares to promoters or any other party for the services rendered by them, share capital account is credited and ___________
debited.
Report Question
0%
Preliminary expenses account
0%
Goodwill account
0%
Capital reserve account
0%
Suspense account
The Character of a Company is its _________________.
Report Question
0%
Articles of Association
0%
Prospectus
0%
Statement in lie of Prospectus
0%
Memorandum of Association
Explanation
An important step in the formation of a company is to prepare a document called a 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 is ultra vires the company. Such an act is not enforceable and directors involve personal liability for it.
Hence, option (D) is the correct answer.
Promoter is both an agent and trustee of the proposed company.
Report Question
0%
True
0%
False
0%
Partly True
0%
Partly False
Explanation
A promoter is neither a trustee nor any agent of the company which he promotes because there is no trust or principal in existence at the time of his efforts. But certain fiduciary duties, like an agent, have been imposed on him under the Companies Act. As such he is said to be in & fiduciary position (a position full of trust and confidence) towards the company and the original allottee of shares. Consequently, a promoter must make full disclosure of the relevant facts, including any profit made.
Hence, B is the correct option.
Partnership is governed by Partnership Act, $$1932$$. Whereas a Company is governed by __________.
Report Question
0%
The Companies Act, $$1958$$
0%
The Companies Act, $$2013$$
0%
The Companies Act, $$2017$$
0%
The Companies Act, $$1975$$
Explanation
The Companies Act 2013 is an Act of the Parliament of India on Indian company law which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company And in this act.
The new Companies Act 2013 has prescribed the maximum number of members in case of a partnership firm should not be more than
100
in case of partnerships. As per the previous Companies Act 1956, the maximum limit in case of partnerships was
10
and
20
for banking business and other businesses respectively.
Which of the following describes the desired future position of the company?
Report Question
0%
Company's Logo
0%
Company's Vision Statement
0%
Company's Mission Statement
0%
Company's Trade Mark or Patentor Design Right
Explanation
A company's vision statement is an aspiration description of what an organisation would like to achieve or accomplish in the mid term or long term future. It is intended to serve as a clear guide for choosing current and future courses of action. Vision statements undergo revisions during the life of a business unlike operation goals which may be updated from year to year.
For the Company's debts, its Creditors _______ sue the Company's Members.
Report Question
0%
Can
0%
Cannot
0%
None of these
0%
Only (A)
Explanation
The company has a separate legal entity separate from its members, shareholders, and directors. Hence, the creditors cannot sue the Company's Members for the debts of the company. Their liability is limited to the number of shares held by them in the company.
Thus, the correct answer is
B.
Which one of the following is not the content of the Memorandum of Association?
Report Question
0%
Name Clause
0%
Registered Office Clause
0%
Objects Clause
0%
Board of Directors Clause
Explanation
As per Schedule I of the Company act 2013 Memorandum of association of company limited by shares has six clauses, which are described below:-
1) Name Clause: – Under this clause name of company is stated, as approved by MCA.
2) Registered Office Clause: – The memorandum must mention the state in which registered office of the company is situated. Complete address of the company need not required to mention here.
3) The Object Clause: – This is the most important clause. Company is free to choose any object which is not illegal. This clause is divided in two parts that is a) Main Object and b)The objects which are necessary for furtherance of the object specified in clause 3(a)
4) Liability Clause: – Liability clause states that the liability of the member is limited to the extent of amount unpaid on shares.
5) Capital clause: – Limited company having share capital must state the amount of its share capital and division thereof into shares of fixed denominations in its capital clause.
Therefore, Board of director clause is not present in the MOA.
A ________ is one who performs the preliminary duties necessary to bring a company into being and float it.
Report Question
0%
Auditor
0%
Promoter
0%
Director
0%
Financer
Explanation
A corporate promoter is a firm or person who does the preliminary work incidental to the formation of a company, including its promotion, incorporation, and flotation, and solicits people to invest money in the company, usually when it is being formed.
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
