Competitive Exams: Commerce MCQs (Practice-Test 79 of 99)

  1. In the case of audit of Statutory Report, an auditor is expected to give his report on the

    1. number of shares allotted, amount received in cash and summarised Receipts and Payments account

    2. authorised capital, subscribed capital and paid up capital

    3. Profit and loss account, Balance Sheet and directors report

    4. directors qualification shares, calls in arrears and calls in advance

  2. Working papers which contain a record of the audit work are the property of the

    1. company

    2. auditor

    3. Registrar of Companies

    4. Government of India

  3. Sampling is used in the case of

    1. collection of debts by the accountant

    2. test checks by the auditor

    3. supervision by the works manager

    4. checking pass-book entried by the accountant

  4. One of the consequences of non-registration of a partnership firm is that

    1. a partner cannot sue the other partner to enforce a right arising from a contract

    2. the partner of such a firm cannot sue third parties

    3. third parties cannot sue the firm for claims exceeding Rs. 100

    4. the official Assignee or Receiver will have no power on the property of the dissolved firm

  5. In the case of a deemed public limited company, the maximum number of members is restricted to

    1. 10

    2. 50

    3. 100

    4. 200

  6. Consider the following rights:

    1. Right to take part in the business

    2. Right to share profits

    3. Right to interest on advances in excess of capital

    4. Right to expel a non-cooperative partner

    The legal rights of a partner would include

    1. 1 and 2

    2. 2 and 4

    3. 1, 2 and 3 (4) 1, 3 and 4

  7. Match List I with List II and select the correct answer:

    List-I (Type of combinations) List-II (Illustrations)
    1. Association

    2. Federation

    3. Partial consolidation

    4. Complete consolidation

    1. Cartel

    2. Chamber of commerce and industry

    3. Holding company

    4. Amalgamation

    • A
    • B
    • C
    • D
      • 2
      • 1
      • 3
      • 4
      • 1
      • 2
      • 3
      • 4
      • 2
      • 1
      • 4
      • 3
      • 1
      • 2
      • 4
      • 3
  8. Which one of the following is an example of a company incorporated by a special Act of Parliament?

    1. Life Insurance Corporation of India

    2. Indian Oil Corporation

    3. State Trading Corporation of India

    4. Bharat Heavy Electricals limited

  9. Which one of the following types of registered companies will be the most appropriate for the promotion of science, culture, religion etc.

    1. Company limited by share

    2. Company limited by guarantee

    3. Unlimited company

    4. Government company

  10. Match List I with list II and select the correct answer:

    List-I List-II
    1. Contract of Uberrimae fidei

    2. Right of Eminent Domain

    3. Statement in lieu of prospectus

    4. System of ‘one man one vote’

    1. Public utility concern

    2. Co-operative society

    3. Partnership

    4. Sole trading concern

    5. Public limited company

    • A
    • B
    • C
    • D
      • 1
      • 3
      • 5
      • 4
      • 3
      • 1
      • 5
      • 2
      • 3
      • 2
      • 1
      • 4
      • 1
      • 2
      • 5
      • 3
  11. A joint stock company's letterhead must by law, have the address of the

    1. Managing Director

    2. Factory

    3. Registered Office

    4. Head Office

  12. Which of the following are stated in the objects clause of the Memorandum of Association of a Public Limited Company?

    1. General and specific objects

    2. Main objects

    3. Secondary objects

    4. Objects incidental to main objects

    5. Other objects

      1. 2, 4 and 5

      2. 1, 3 and 5

      3. 2, 3 and 4

      4. 1, 2 and 4

  13. The first auditors of a company are appointed by the

    1. Registrar of Companies

    2. shareholders of the company

    3. promoters of the company

    4. Board of Directors of the company

  14. Who among the following has NO right to speak at the AGM?

    1. Chairman of the company

    2. Whole-time director of the company

    3. Proxy holder

    4. None of the above, as everybody has a right to speak at the AGM

  15. Which one of the following is the correct sequence of steps in the formation and commencement of business of a public limited company?

    1. Memorandum, Issue of Prospectus, Filing of Prospectus, Minimum subscription

    2. Memorandum, Minimum subscription, Filing of Prospectus, Issue of Prospectus

    3. Memorandum, Filing of Prospectus, Issue of Prospectus, Minimum subscription

    4. Memorandum, Issue of Prospectus, Minimum subscription, Filing of Prospectus