Competitive Exams: Commerce MCQs (Practice-Test 85 of 99)

  1. The document required to be filed with the Registrar of Companies at the time of incorporation of a company includes

    1. An agreement, if any, which the company proposes to enter into with any individual for appointment as manager or managing director

    2. the Prospectus

    3. an application for name availability

    4. a statement of minimum subscription

  2. A public company can be called as a body corporate alters it

    1. Receives certificate of commencement of business

    2. issues prospectus

    3. receives certificate of incorporation

    4. Receives approval from the Registrar for the proposed name of the company

  3. Consider the following statements:

    1. A Private Limited Co. Must have at least 3 (three) directors and a Public Ltd. Co. At least (seven) Directors.

    2. Liability of shareholder of a Public Ltd. Co. Is limited to the extent of the total authorized Capital and liability of the company.

    3. Transfer of shares is restricted in case of Private Ltd. Co.

    4. A Private Ltd. Co. Before commencement of business must issue statement in lieu of


    1. 2 alone is correct

    2. 2, 3 and 4 are correct

    3. 3 alone is correct

    4. 1, 2 and 4 are correct

  4. Under: Section 68A of the Companies Act 1956, any person who induces a company to allot shares or register transfer of shares in a fictitious name shall be punishable with

    1. A fine of Rs. 500

    2. a fine of Rs. 5, 000

    3. imprisonment up to 5 years

    4. a fine of Rs. 500 and imprisonment up to 5 years

  5. Which one of the following is an ‘Ordinary Business’ for the purpose of an Annual General meeting?

    1. Change in the Articles of Association of the company

    2. Issue of debentures

    3. Change in the ‘objects clause’ of the Memorandum of Association

    4. None of the above

  6. When an act is performed or a transaction is carried out, which, though legal n itself, is not authorized by the object clause in the Memorandum or by Statute, It is said to be

    1. Ultra vireos the powers of the company

    2. intro vireos the powers of the company

    3. ultra vireos the powers of the Board

    4. ultra vireos the implied authority

  7. An exception to the application of Doctrine of Indoor Management is made when

    1. a person represents the company with or without actual authority to do so

    2. outsiders have knowledge of irregularity of the conduct

    3. the sum of the company is not affixed on the documents Issued to outsider's

    4. the directors of the company have delegated authority for the internal management to the Managing Director

  8. A special notice is required for a resolution when

    1. A director is to be removed before the expiry of his period of office

    2. A statutory report has to be adopted

    3. there is alteration of share capital

    4. A Company wants to convene a meeting of creditors

  9. A director should obtain his qualification shares within

    1. one month of his appointment

    2. two months of his appointment

    3. three months of his appointment

    4. six months of his appointment

  10. Which one of the following powers CANNOT be delegated to any person by the Board of Directors?

    1. Investment of funds of the company

    2. Issue of debentures

    3. Borrowing money otherwise than on debentures

    4. making loans

  11. The Board of Directors CANNOT appoint

    1. additional directors

    2. alternate directors

    3. directors in casual vacancy

    4. directors under Section 408 of Companies Act, 1956

  12. Special audit of accounts of a company is directed by

    1. Shareholders of the company

    2. Comptroller and Auditor General of India

    3. Company Law Board

    4. Central Government

  13. Section 224 of the Companies Act 1956, deals with

    1. special audit

    2. secretarial audit

    3. cost audit

    4. appointment and remuneration of auditors

  14. Part II, schedule VI of the Companies Act; 1956 prescribes

    1. Vertical form, of balance sheet

    2. requirements as to profit and loss account

    3. horizontal form of Balance sheet

    4. contents of prospectus

  15. Match List I (items) with List II (Section of Companies Act, 1956) and select the correct answer:

    List-I List-II
    1. Appointment of Auditors

    2. Qualification of Auditors

    3. Appointment of Auditors

    4. Remuneration of Auditors

    1. Sec. 226 (1) by Central Govt.

    2. Sec. 224 (5)

    3. Sec. 224 (8) by Board of Directors

    4. Sec. 224 (3)

    • A
    • B
    • C
    • D
      • 4
      • 1
      • 3
      • 2
      • 1
      • 4
      • 2
      • 3
      • 4
      • 1
      • 2
      • 3
      • 1
      • 4
      • 3
      • 2