1. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a voluntary association of persons formed to carry on some business for profit or
to promote art, science, education or some charitable purpose.
Correct : C. Company
2. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a legal person which capable of perpetual succession and common seal
Correct : A. Company
3. See ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies Act, 1956 states that a company means “ a company formed and
registered under this Act, or an existing company”
Correct : D. 3(1)(i)
4. A company is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of a person who have come together for a common object which
generally is to earn profit
Correct : D. All of these.
5. Anything done under an agreement between the company and third party requires recognition of
the company in the form of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : D. Official seal
6. A company is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ person
Correct : C. Legal
7. A company is the creation of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : B. Law
8. Minimum ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ and maximum ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ constitute a private limited company
Correct : D. 2 of 50
9. Mean any premises including precincts thereof
Correct : B. Factory
10. Minimum ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ persons to constitute a public limited company.
Correct : A. 7
11. Accounts of a company must be audited by an ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : B. Auditor
12. The winding up of the company can only be done by the process of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. Law
13. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ company are those which are incorporated by a Royal Charter.
Correct : A. Chartered
14. Statutory companies are those incorporated under a special act passed by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : B. Parliament
15. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Company may be companies limited by shares companies limited guarantee,
unlimited companies.
Correct : B. Liability of members
16. Companies limited by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are not formed for the purpose of profit but for the promotion
of art, science, culture, charity, sports, commerce etc.
Correct : D. Guarantee
17. Private company means a company which has a minimum paid up capital of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. Rs.1,00,000
18. A public company has been defined in sec.‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : A. 3(1)(iv)
19. Public company means a company which has a minimum paid up capital of Rs.‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. 5,00,000
20. Shares can be freely transferable in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : A. Public company
21. The common seal of the company is the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : A. Official signature of the company
22. During which of the following circumstances can the veil be lifted by the court?
Correct : D. All of the above.
23. The memorandum of Association is a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the company.
Correct : C. Document
24. If the Articles of a company conflict with the memorandum.
Correct : B. The memorandum shall prevail
25. The shorter versions of a prospectus is also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. Abridged prospectus
26. On a share of Rs.200 of a company a shares holder has already paid Rs.150 . His L9iability is now
limited to:‐
Correct : B. 50
27. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ refers to a voluntary association of individuals formed for the purpose of obtaining a
particular social or economical goal.
Correct : D. Company
28. A ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a document but invites the public to subscribe for share and debentures
Correct : C. Prospectus
29. The ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ issues the certificate of incorporation
Correct : A. Register
30. Corporate veil ensures ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the company
Correct : B. Legal Immunity
31. The articles of Association and the memorandum of Association are drafted by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. Secretary
32. Doctrine of Ultra virus has reference to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ clause
Correct : A. Object
33. Which doctrine protects the out of the outsiders from the company?
Correct : B. The doctrine of indoor management
34. Which Doctrine seeks to promote the company from the outsiders?
Correct : C. The doctrine of constructive notice
35. Sec. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies Act deals with the meaning and provisions related to the
shelf prospectus.
Correct : D. 60
36. Sec. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies act states that, a public company making an issue of
securities shall circulate information memorandum to the public before filling of a prospectus.
Correct : A. 60(B)
37. The person of group who being a company into existence are called‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. Promoters
38. The board of directors delegate the power to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : D. Make loans
39. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ are subordinate to and controlled by the memorandum.
Correct : A. Articles of Association
40. A copy special resolution has to be filed with the register within ‐‐‐‐‐‐‐‐‐‐‐‐‐‐ days
Correct : B. 30 days
41. A printed copy articles as altered shall be filed by the company with the register within ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
‐‐‐ of order of approval from central
Correct : C. One month
42. Sec. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companied Act defines foreign company
Correct : D. 591
43. Sec.25 related to ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ companies
Correct : B. Licensed
44. Holding company is defined in section ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of the companies Act.
Correct : A. 4(4)
45. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the first stage in the formation of a company
Correct : A. Promotion
46. The idea of carrying on a business is conceived by a person by a group of persons called ‐‐‐‐‐‐‐‐‐‐
Correct : B. Promoters
47. A company is said to be incorporated when it is registered with registrar of the ‐‐‐‐‐‐‐‐‐‐‐‐ company
Correct : D. Joint stock
48. When one company controls the management of another company, the format is called a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐
‐‐‐‐‐‐‐ company
Correct : C. Subsidiary
49. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is issued by any financial constitution or bank for on e or more of issues of securities
or class of securities specified in the prospectus.
Correct : B. Shelf Prospectus
50. The other name of indoor management is called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : D. Tarquand rule
51. A company may change its name by passing ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ with the approval of central govt.
Correct : A. Special resolution
52. The company shall give notice of alteration to the Register within ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of passing the
resolution
Correct : C. 30 days
53. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ consists of a series of regulations framed by the legislature for the conduct of the
affair of company.
Correct : B. Table A
54. If a public company limited by shares does not register its own articles ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐apply
Correct : C. Table A
55. Prospectus must therefore make full and honest declaration of materials facts without concealing or
omitting any relevant fact. This is known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : B. Golden rule
56. A Public company May issue a prospectus called ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : A. Red herring Prospectus
57. The statement in lieu of prospectus is drafted in accordance with the particulars set in part I of the ‐‐
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ the Act
Correct : D. Schedule II
58. Golden rule was laid down by ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : A. KINDERSELY VC in new Brun Wick Co. V Marreride
59. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a shorter version of the prospectus and contains all the salient features of a
prospectus that forms a part of the memorandum.
Correct : B. A bridged prospectus
60. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Acts as the official signature of the company.
Correct : D. Common seal
61. The association that are not registered under sec. II of the companies act is ‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : B. Illegal Association
62. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a person who has signed company’s memorandum of association
Correct : C. Member
63. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is a person who holds the shares for the benefit persons
Correct : A. Trustee
64. The right given to a particular class of shareholders are called the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. Class right
65. The power to order rectification of register of members vests in the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : B. Tribunal
66. On which of the following dates the companies Act,1956 come in to force?
Correct : B. 1st April 1956
67. The history of the Indian Company Law began in the year of
Correct : A. 1850
68. The privilege of limited liability was introduced in the Indian Company Law, in the year of
Correct : B. 1857
69. Statutory companies are also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. Corporation
70. The auditor of government company is appointed by the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of India
Correct : D. Controller and Auditor General.
71. A Statutory company is one which incorporated by
Correct : D. By either a or b.
72. In case of a company limited by guarantee, the liability of the members can be enforced
Correct : A. Only at the time of winding up of the company
73. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is compulsory for unlimited companies, private companies limited by guarantee.
Correct : B. Articles of Association
74. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ describes the scope of company activities
Correct : A. Memorandum of association
75. The first important document to be filed with the Registrar is ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. Memorandum of Association
76. If the company’s Act go beyond the provisions of the Memorandum, its act will be ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. Ultra virus
77. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is the construction of a company
Correct : C. Memorandum
78. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of schedule I of the companies Act, which gives the specimen of memorandum of a
company limited by shares
Correct : A. Table B
79. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ can be passed by the support of three fourth majority a share holders who are present
and entitle to vote at a meeting.
Correct : C. Both A and B
80. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ contain the rules and regulation of the company
Correct : C. Articles of Association
81. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ signed by the required number of persons which are necessary for the formation of
company.
Correct : B. Prospectus
82. A public company having a share capital, becomes entitled to commence business only after
obtaining a further certificate known as a ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : D. Certificate of commence business
83. If at the registration, a company limited by shares does not file articles of association with the
registrar, then
Correct : A. The company deemed to have adopted Table A
84. The annual return should be filed by a company with the Registrar within the date of the annual
general meeting of the company.
Correct : B. 60
85. Every share holder of a company is also known as ‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : A. Member
86. A foreigner can become a member of a company registered in India but permission of
Correct : C. RBI
87. Registered Office clause of memorandum of Association contain‐‐‐‐‐‐‐‐
Correct : D. The name of the state in which registered office of the company is to situate
88. The capital with which the company is registered is called the ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : B. Nominal Capital
89. The procedure for change of registered office from one city to another within the state is by
passing‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : A. Special resolution only
90. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ document contains the rules, regulations and bye‐laws for the internal
management of the company
Correct : B. Article of Association
91. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is subordinate to and controlled by the memorandum of association
Correct : C. Articles of association
92. ‐‐‐‐‐‐‐‐‐‐‐‐ lays down the objects and powers of the company.
Correct : A. Memorandum of Association
93. ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ lays down the modes in which the objects of the company are to be carried out
by the members.
Correct : D. Articles of association
94. Articles of association adopt the rules and regulations contained in ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ of schedule I of
the companies Act
Correct : C. Table A
95. The forms of articles of association are given in tables ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ is schedule I of the companies
Act 1956
Correct : A. A,C,D&E
96. The forms of Memorandum of association are given in tables ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ in schedule I of the
companies Act 1956
Correct : B. B,C,D&E
97. The doctrine of indoor Management has its own origin in
Correct : C. Royal British Bank V Turquand
98. Offers may be invited from the public by issuing a document known as ‐‐‐‐‐‐‐‐‐‐‐‐
Correct : A. Prospectus
99. Articles of Association are not required to be registered in case of ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : C. A public company limited by shares.
100. Doctrine of constructive notice means‐‐‐‐‐‐‐‐‐‐‐‐‐
Correct : B. Notice to outside dealing with the registrar as to contents of memorandum and articles