1. An instrument which retain debt character and cannot be converted into equity shares
Correct : A. Non Convertible Debentures
2. A borrowing made by a company from a particular bank/financial institution.
Correct : B. Bilateral borrowing
3. Bonds which are sold at a discount from its eventual maturity value and have zero interest rate.
Correct : A. Zero coupon bonds
4. For which type of capital a company pays the prescribed fees at the time of registration?
Correct : B. Authorized capital
5. According to Companies Act,minimum number of members in case of public company
Correct : D. 7
6. Maximum no. of members in case of private company as per Companies Act is
Correct : A. 50
7. If minimum subscription is not received application money should be refunded with in ______days
Correct : D. 10
8. Section 12 of the Companies Act 1956, deals with
Correct : A. Incorporation
9. The application for registration of a company should be presented to the _______ of the state appointed under Companies Act 1956
Correct : B. Registrar
10. A statement of nominal capital must be given at the time of incorporation by the company when the share capital is less than
Correct : C. 25 lakh
11. The Articles of Association must be signed by
Correct : C. Subscribers of Memorandum
12. Which of the following clause of Memorandum of Association cannot be altered
Correct : B. Liability
13. An Indian private limited company which has only one founder/promoter is termed as________
Correct : B. One Person Company
14. A company formed and registered under the Act of 2013 for a future project or to hold an asset or an intellectual property is called__________
Correct : A. Dormant Company
15. The Certificate issued by the Registrar after a company is registered is called_________
Correct : B. Certificate of Incorporation
16. A document which contains the fundamental rules regarding the constitution and activities of a company is called
Correct : A. Memorandum of Association
17. A document which is submitted by an issuer company who intends to have public offerings of securities is called
Correct : B. Red Herring Prospectus
18. Part of authorized capital which is actually offered to the public for sale is called
Correct : C. (c) Issued capital
19. _________are the creditors of the company.
Correct : D. Debenture-holders
20. ____________means abandonment of the shares by the holder thereof in favour of the company.
Correct : A. Surrender of shares
21. A ____________ is a director who is entrusted with certain duties and responsibilities.
Correct : B. Whole time Director
22. If there is no quorum within ___________ of the notified time for starting the meeting, it is dissolved.
Correct : A. Half an hour
23. According to the Act, a quorum in a public company is constituted by
Correct : B. 5 members
24. Any member, entitled to attend and vote in a meeting, can appoint another person to attend and vote on his behalf, the person appointed is called-
Correct : D. Proxy
25. A written record of the proceedings of a meeting is called-
Correct : D. Minutes
26. The first Annual General Meeting of a company may be held within a period of not more than ___________ from the date of its incorporation.
Correct : D. 18 months
27. The ___________________ is a director who is entrusted with substantial powers of management.
Correct : C. Managing Directors
28. The Board of Directors can call a general meeting of the members any time by giving not less than-
Correct : D. 21 days‟ notice
29. A company shall not appoint any person as its whole time director if:
Correct : A. He is an undischarged insolvent
30. A director may be removed from his office by:
Correct : D. All of the above
31. Which of the following section defines a managing director:
Correct : B. Sec. 2 (26)
32. No company shall appoint any individual as its managing director for a term exceeding:
Correct : B. 5 years at a time
33. A director who is known as an executive director is:
Correct : B. Whole time director
34. The meetings of a company can be classified as:
Correct : D. All of the above
35. The most method to ascertain the sense of a meeting and commonly used voting method at company meeting is:
Correct : A. Voting by show of hands
36. The official record of the proceedings of the meetings of directors or shareholders of a company is:
Correct : C. Quorum
37. Any invitation issued to the public inviting it to deposit money with the company or to take share or debentures of the company such invitation may be in the form of a document or a notice, circular, advertisement etc is known as
Correct : B. Documents
38. A subsidiary company can be a member of the holding company also.
Correct : A. True
39. A person who has control over the affairs of the company, directly or indirectly
whether as a shareholder, director or otherwise
Correct : B. Manager
40. A borrowing made by a company from a particular bank/financial institution.
Correct : C. Private borrowing
41. Bonds which are sold at a discount from its eventual maturity value and have zero interest rate.
Correct : D. None
42. For which type of capital a company pays the prescribed fees at the time of registration?
Correct : D. Issued capital
43. Reappointment of Managing director and Whole time director shall not be made earlier than
Correct : B. 12 months before the expiry of his term
44. The term Managing Director as defined by Companies Act, 2013, means
Correct : D. All of the above
45. A company shall not appoint any person as its managing or whole time director who
Correct : D. All of the above
46. No Company shall appoint any individual as its managing director for a term exceeding______ at a time
Correct : A. 5 years
47. A whole-time key managerial personnel shall not hold office in more than __________ at the same time.
Correct : A. one company except in its subsidiary company
48. If the office of any whole-time key managerial personnel is vacated, the resulting vacancy shall be filled-up by the Board at a meeting of the Board within a period of
Correct : C. 6 months from the date of such vacancy
49. A director or manager in a company may be paid remuneration by way of
Correct : D. (d)All of the above
50. A person shall not be eligible for appointment as a managing or whole-time director or a manager of a company if he had been detained for any period under the__________
Correct : A. Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974.
51. Every company can have a maximum number of directors up to
Correct : B. 15
52. The _____________is not an employee nor a servant of the company, but a director who is entrusted with any substantial powers of management
Correct : C. Managing director
53. No person can be managing director of __________public or private company (which is a subsidiary of a public company).
Correct : A. more than 1
54. According to Companies Act, 2013, the first annual general meeting of a company should be held within a period of ________from the date of closing of the first financial year of the company.
Correct : C. 9 months
55. The Board of Directors can call a general meeting of the members any time by giving
not less than _________notice.
Correct : B. 21 days‟
56. In case of a private company, __________personally present shall be the quorum for a meeting of the company.
Correct : B. 2 members
57. A person appointed by any member of the company to attend and vote at the meeting on his behalf is called _________
Correct : A. the Proxy
58. If no person is named in the articles of association as director, the person who sign the memorandum of association of the company become ____________
Correct : D. First director
59. _____________ is a misdemeanor committed by majority shareholders, who under control of their majority power wrongfully inflict upon the minority shareholder or minority shareholders any harm of injury.
Correct : D. Oppression
60. An application for the winding up of a company can be made to the court by
Correct : D. All of the above
61. Misuse of company funds is one form of
Correct : B. Mismanagement
62. When the company is a mere bubble and does not carry on any business it is a just and equitable clause to
Correct : A. Compulsorily winding up
63. The affairs of the company are being conducted in a manner prejudicial to public interest or in a manner prejudicial to the interests of the company is known as-
Correct : B. Mismanagement
64. A person liable to contribute to the assets of a Company in the event of its being wound
up is called
Correct : C. Contributory
65. If the company is not in a position to pay its debts and the directors make no declaration of solvency it is called-
Correct : B. Creditors Voluntary Winding up
66. The duties of the Official Liquidator includes-
Correct : D. All of the above
67. The act is not held oppressive when there is:
Correct : A. Mere inefficiency on the management
68. In the administration of the affairs of the company, who determine the fate of the company:
Correct : C. Majority shareholders
69. In order to prevent the majority from misusing their power and to ensure justice to minority shareholders, certain exceptions have been admitted. Which of the following is among the exceptions:
Correct : D. All the above
70. The following persons may apply to the Company Law Board for relief in case of oppression & mismanagement:
Correct : D. All of the above
71. A company may be wound up by the Court by:
Correct : D. All of the above
72. Which section provides for voluntary winding up of a company
Correct : A. Section 484
73. If the directors make o declaration of solvency before the members pass a winding up resolution, the winding up will be:
Correct : C. Creditors‟ voluntary winding up
74. The following persons are liable as contributories:
Correct : D. All of the above
75. The word oppressive means
Correct : D. all of the above
76. The rule of “Majority shall prevail” was inferred from which famous case law
Correct : D. Foss v/s Horbottle
77. Which of the following does not amount to mismanagement?
Correct : D. all of the above
78. Which of the following is an act of oppression & mismanagement?
Correct : D. Sale of asset for the benefits of directors themselves
79. Winding up by the members themselves without the intervention of the court
Correct : A. Voluntary winding up
80. Who can apply for winding up?
Correct : D. All of the above
81. For winding up,the companies act provides that in each High Court ther shall be an officer known as the official liquidator appointed by the
Correct : A. Central Government
82. Which of the following is applicable in case of winding up of a company?
Correct : C. Both a and b
83. The different modes of winding up are:
Correct : D. All of the above
84. Compulsory winding up means
Correct : D. All of the above.
85. Voluntary winding up means
Correct : D. All of the above
86. In case of compulsory winding up Liquidator is appointed by
Correct : A. Court
87. Who are the persons who can file petition for winding up of the company
Correct : C. Both (a) and (b)
88. A voluntary winding-up commences when
Correct : A. the members of the company pass a special resolution to wind up
89. The first item in order of payment to be made by liquidator is:
Correct : B. Liquidation expenses
90. In case of creditors voluntarily winding up,liquidator is appointed by
Correct : C. Both Creditors &Menbers
91. In which of the following cases majority rule does not prevail?
Correct : D. all of the above
92. Which of the following is an act of oppression &mismanagement
Correct : D. Sale of asset for the benefits of directors themselves
93. Within how many days should the certified copy of order of Tribunal be filled with Registrar
Correct : A. 30 days
94. Compulsory winding up of a company will take place if
Correct : D. All of the Above
95. In case of winding up of a company, the liquidator appointed is required to give a declaration disclosing their interest or lack of independence if any, within
Correct : C. 7 days
96. What are the powers of the tribunal on receipt of petition for winding up?
Correct : D. All of above
97. Which of the following are permitted to present the petition for winding up?
Correct : D. All of the above
98. Amount remained unclaimed in “Company Liquidation Dividend and Undistributed Asset account” shall be transferred to general revenue account of Central Government after