{"id":18509,"date":"2021-02-11T14:46:43","date_gmt":"2021-02-11T09:16:43","guid":{"rendered":"https:\/\/ncertsolutions.guru\/?p=18509"},"modified":"2021-03-04T15:00:35","modified_gmt":"2021-03-04T09:30:35","slug":"ncert-solutions-for-class-11-business-studies-chapter-7","status":"publish","type":"post","link":"https:\/\/ncertsolutions.guru\/ncert-solutions-for-class-11-business-studies-chapter-7\/","title":{"rendered":"NCERT Solutions for Class 11 Business Studies Chapter 7 Formation of a Company"},"content":{"rendered":"

Detailed, Step-by-Step NCERT Solutions for 11 Business Studies<\/a> Chapter 7 Formation of a Company Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.<\/p>\n

Formation of a Company NCERT Solutions for Class 11 Business Studies Chapter 7<\/h2>\n

Formation of a Company Questions and Answers <\/span>Class 11 Business Studies Chapter 7<\/h3>\n

Tick the followings :<\/span><\/p>\n

Question 1.
\nMinimum number of members to form a private company is
\n(a)’2
\n(b) 3
\n(c) 5
\n(d) 7
\nAnswer:
\n(a)’2<\/p>\n

Question 2.
\nMinimum number of members to form a public company is
\n(a) 5
\n(b) 7
\n(c) 12
\n(d) 21
\nAnswer:
\n(b) 7<\/p>\n

\"NCERT<\/p>\n

Question 3.
\nApplication for approval of name of a company is to be made to
\n(a) SEBI
\n(b) Registrar of Companies
\n(c) Government of India
\n(d) Government of the state in which company is to be registered
\nAnswer:
\n(a) SEBI<\/p>\n

Question 4.
\nA proposed name of company is considered undesirable if
\n(a) It is identical with the name of an existing company
\n(A) It is resembles closely with the name of an existing company
\n(c) It is an emblem of Government of India, United Nations etc.
\n(d) In case of any of the above.
\nAnswer:
\n(d) In case of any of the above.<\/p>\n

Question 5.
\nA prospectus is issued by
\n(a) A private company
\n(b) A public enterprise
\n(c) A public company seeking
\n(d) A public company investment from public
\nAnswer:
\n(c) A public company seeking<\/p>\n

Question 6.
\nStages in the formation of a public company are in the following order ‘
\n(a) Promotion, Commencement of Business, Incorporation, Capital Subscription
\n(b) Incorporation, Capital Subscription, Commencement of Business Promotion.
\n(c) Promotion, Incorporation, Capital subscription, Commencement of Business
\n(d) Capital Subscription, Promotion, Incorporation,Commencement of Business
\nAnswer:
\n(c) Promotion, Incorporation, Capital subscription, Commencement of Business<\/p>\n

Question 7.
\nPreliminary contracts are signed
\n(a) Before the incorporation
\n(b) After incorporation but before capital subscription
\n(c) After incorporation but before commencement of business
\n(d) After commencement of business
\nAnswer:
\n(a) Before the incorporation<\/p>\n

Question 8.
\nPreliminary contracts are
\n(a) Binding on the company
\n(b) Binding on the company, if ratified after incorporation
\n(c) Binding on the company, after incorporation
\n(d) Not binding on the company.
\nAnswer:
\n(b) Binding on the company, if ratified after incorporation<\/p>\n

\"NCERT<\/p>\n

True-False Answer Questions<\/strong><\/p>\n

    \n
  1. It is necessary to get every company incorporated whether private or public.<\/li>\n
  2. Statement in lieu of prospectus can be filed by a public company going for a public issue.<\/li>\n
  3. A private company can commence business after incorporation.<\/li>\n
  4. Experts who help promoters in the promotion of a company are also called promoters.<\/li>\n
  5. A company can ratify preliminary contracts after incorporation.<\/li>\n
  6. If a company is registered on the basis of fictitious names, its incorporation is invalid.<\/li>\n
  7. Articles of Association\u2019 is the main document of a company.<\/li>\n
  8. Every company must file Articles of Association.<\/li>\n
  9. A provisional contract is signed by promoters before the incorporation of a company.<\/li>\n
  10. If a company suffers heavy losses and its assets are not enough to pay off its liabilities, the balance can be recovered from the private assets of its members.<\/li>\n<\/ol>\n

    Answer:<\/p>\n

      \n
    1. True<\/li>\n
    2. False<\/li>\n
    3. True<\/li>\n
    4. False<\/li>\n
    5. True<\/li>\n
    6. False<\/li>\n
    7. False<\/li>\n
    8. False<\/li>\n
    9. False<\/li>\n
    10. False<\/li>\n<\/ol>\n

      Short Answer Questions<\/span><\/p>\n

      Question 1.
      \nName the stages in the formation of a company.
      \nAnswer:
      \nFormation of a company is a complex activity, involving these stages are as follows:<\/p>\n

        \n
      1. Promotion Identification of business opportunities, analysis of its prospects, and initiating steps to form a company is known as promotion of a company.<\/li>\n
      2. Incorporation Registration of a company as a body corporate under Companies Act, 1956 is known as incorporation.<\/li>\n
      3. Subscription of Capital A public company\u2019s raising hinds from the public by means of an issue of shares and debentures is known as a capital subscription.<\/li>\n
      4. Commencement of Business the registrar issues certificate of commencement of business which is conclusive evidence of completion of the formation requirement of a company.<\/li>\n<\/ol>\n

        Question 2.
        \nList the documents required for the incorporation of a company.
        \nAnswer:
        \nDocuments used information of a company – There are some basic documents that are required to be filed with the Registrar of Companies in the formation of a public company. These are :<\/p>\n