MCQ Questions for Class 11 Business Studies Chapter 7 Formation of a Company with Answers

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Formation of a Company Class 11 MCQs Questions with Answers

Question 1.
The dividend payable to ___________ shareholders is payable on fixed figure or percent
(a) Equity
(b) Non-preference
(c) Preference
(d) All of the above

Answer

Answer: (c) Preference


Question 2.
A company is known as the _______company of another company if it has control over that other company.
(a) Subsidiary
(b) Holding
(c) Controlling
(d) Statutory

Answer

Answer: (b) Holding


Question 3.
A private company means a company which has a minimum paid up capital of Rs.______
(a) 1,00,000
(b) 5,00,000
(c) 50,00,000
(d) None of the above

Answer

Answer: (a) 1,00,000


Question 4.
The Prospectus must be issued to the public within ______________ days of its date.
(a) 30
(b) 60
(c) 90
(d) 100

Answer

Answer: (c) 90


Question 5.
__________ means the total amount of called up capital on the shares issued and subscribed by the shareholders on the capital account.
(a) Called-up capital
(b) subscribed capital
(c) nominal capital
(d) Paid-up capital

Answer

Answer: (a) Called-up capital


Question 6.
Par value of shares means the __________ value of the shares
(a) Actual
(b) face
(c) Market
(d) dividend

Answer

Answer: (b) face


Question 7.
Among the following which documents are not mandatory to be submitted to the registrar along with an incorporation application by a private company.
(a) Address of Registered office & undertaking
(b) Undertaking and statement of capital
(c) Statement of capital & list of directors
(d) List of directors and statement of capital

Answer

Answer: (a) Address of Registered office & undertaking


Question 8.
The articles of association need to be signed by
(a) All proposed directors
(b) Registrar
(c) Subscribers of memorandum
(d) None of the above

Answer

Answer: (c) subscribers of the memorandum


Question 9.
“Men may come and men may go but the company exists”- this explains which characteristics of the company as per companies Act 1956.
(a) Separate legal entity
(b) Perpetual Succession
(c) Capacity to sue
(d) None of the above

Answer

Answer: (b) Perpetual Succession


Question 10.
___________ cannot give an invitation to the public to subscribe for any shares in or debentures of the company
(a) Subsidiary company
(b) Statutory Company
(c) Private company
(d) Registered company

Answer

Answer: (c) Private company


Question 11.
A proposed name of a Company is considered undesirable if
(a) It is identical to the name of an existing company
(b) It resembles closely the name of an existing company
(c) It is an emblem of the Government of India, the United Nations, etc.
(d) In case of any of the above

Answer

Answer: (d) In case of any of the above


Question 12.
Application for approval of name of a company is to be made to
(a) SEBI
(b) Registrar of Companies
(c) Government of India
(d) Government of the State in which Company is to be registered

Answer

Answer: (b) Registrar of Companies


Question 13.
The application for registration of a company should be presented to the _______________ of the state appointed under Companies Act 1956
(a) Controller
(b) Registrar
(c) Governor
(d) Registration officer

Answer

Answer: (b) Registrar


Question 14.
Powers, rights, remuneration, qualification, and duties of directors are discussed clearly in
(a) Memorandum of Association
(b) Articles of Association
(c) Prospectus
(d) None of the above

Answer

Answer: (b) Articles of Association


Question 15.
Private company prohibits any invitation or acceptance of deposits from persons other than its ___________
(a) Members
(b) directors
(c) Partners
(d) Banks

Answer

Answer: (a) Members


Question 16.
Section 12 of Companies Act 1956, deals with
(a) Incorporation
(b) Share capital
(c) Number of Directors
(d) Shareholders

Answer

Answer: (a) Incorporation


Question 17.
The shares of a _______________ company can be freely transferable
(a) Private ltd
(b) Public ltd
(c) Partnership
(d) All of the above

Answer

Answer: (b) Public ltd


Question 18.
Which of the following is not a clause of memorandum of association
(a) situation
(b) capital
(c) subscription
(d) directors

Answer

Answer: (d) directors


Question 19.
A private company means a company which has a minimum paid up capital of Rs._________
(a) 1,00,000
(b) 5,00,000
(c) 50,00,000
(d) None of the above

Answer

Answer: (b) 5,00,000


Question 20.
The certificate of capital will be issued by
(a) Registrar of Companies Act
(b) Controller of companies Act
(c) Registrar of capital issues
(d) Controller of capital issues

Answer

Answer: (d) Controller of capital issues


Question 21.
Which of the following clause of the Memorandum of Association cannot be altered?
(a) Name
(b) Object
(c) Situation
(d) Liability

Answer

Answer: (d) Liability


Question 22.
The company will be considered as a separate person and different from its members from the date of __________
(a) Start of business
(b) Apply for registration
(c) Receive incorporation certificate
(d) Mentioned in the certificate

Answer

Answer: (d) Mentioned in the certificate


Question 23.
A prospectus is issued by
(a) A private company
(b) A public company seeking investment from public
(c) A public enterprise
(d) A public company

Answer

Answer: (b) A public company seeking investment from public


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