What is the minimum number of members required to form a public limited company in most jurisdictions?
Correct!
Wrong :(
Answer - d) 7
2
Which document contains the constitution of a company and its rules and regulations?
Correct!
Wrong :(
Answer - b) Articles of Association
3
The power to regulate the issuance and transfer of securities lies with:
Correct!
Wrong :(
Answer - c) Securities and Exchange Board of India (SEBI)
4
Which type of company has limited liability for its members and often has a minimum of 2 and a maximum of 200 members?
Correct!
Wrong :(
Answer - b) Private limited company
5
Which of the following is not a regulatory body for companies in India?
Correct!
Wrong :(
Answer - c) Reserve Bank of India (RBI)
6
Who can call an Extraordinary General Meeting (EGM) of a company?
Correct!
Wrong :(
Answer - b) Shareholders holding at least 10% of voting rights
7
The process by which one company takes over another and becomes the owner of its assets and liabilities is known as:
Correct!
Wrong :(
Answer - c) Acquisition
8
Which financial statement of a company provides information about the financial position at a specific point in time?
Correct!
Wrong :(
Answer - c) Balance Sheet
9
The first step in the incorporation of a company is:
Correct!
Wrong :(
Answer - c) Applying for the name of the company
10
Which of the following is a voluntary winding-up of a company by its shareholders?
Correct!
Wrong :(
Answer - b) Members voluntary winding-up
11
In a public company, the minimum number of directors required is:
Correct!
Wrong :(
Answer - c) 3
12
What is the maximum number of members allowed in a private limited company?
Correct!
Wrong :(
Answer - b) 50
13
Which of the following is not a characteristic of a partnership?
Correct!
Wrong :(
Answer - a) Limited liability
14
What is the primary purpose of the Memorandum of Association?
Correct!
Wrong :(
Answer - b) To specify the companys authorised capital
15
In the context of company law, what does the term AGM stand for?
Correct!
Wrong :(
Answer - a) Annual General Meeting
16
Which type of shares do not carry voting rights?
Correct!
Wrong :(
Answer - b) Preference shares
17
A company can issue new shares to the public through a document known as:
Correct!
Wrong :(
Answer - a) Prospectus
18
Who is responsible for appointing the first auditor of a company?
Correct!
Wrong :(
Answer - The shareholders
19
The power to remove a director before the expiration of their term lies with:
Correct!
Wrong :(
Answer - b) Shareholders
20
Which of the following is not a statutory meeting?
Correct!
Wrong :(
Answer - a) Annual General Meeting (AGM)
21
Which of the following statements is true regarding the liability of members in a public limited company?
Correct!
Wrong :(
Answer - b) Limited to the extent of their shareholding
22
Which regulatory body is responsible for protecting the interests of investors in securities and promoting the development of the securities market in India?
Correct!
Wrong :(
Answer - c) Securities and Exchange Board of India (SEBI)
23
What is the minimum number of members required to form a One Person Company (OPC) in India?
Correct!
Wrong :(
Answer - a) 1
24
The process of reducing the nominal value of a companys shares is known as:
Correct!
Wrong :(
Answer - b) Share consolidation
25
Which document is filed with the Registrar of Companies (ROC) to create a charge on the assets of a company?
Correct!
Wrong :(
Answer - d) Charge documents
26
Which type of company can issue shares to the public and has no restriction on the transfer of shares?
Correct!
Wrong :(
Answer - c) Public limited company
27
Who is responsible for maintaining the Register of Members of a company?
Correct!
Wrong :(
Answer - a) Registrar of Companies (ROC)
28
The process by which a company divides its existing shares into a larger number of shares with a lower face value is known as:
Correct!
Wrong :(
Answer - a) Share split
29
Which type of company is typically allowed to have a maximum of 50 members and is not permitted to invite the public to subscribe to its shares or debentures?
Correct!
Wrong :(
Answer - a) Private limited company
30
What is the maximum number of partners allowed in a partnership firm in most jurisdictions?
Correct!
Wrong :(
Answer - b) 10
31
Who has the authority to appoint the first director of a company?
Correct!
Wrong :(
Answer - a) Promoters of the company
32
What is the primary function of the Company Secretary in a company?
Correct!
Wrong :(
Answer - b) Ensuring compliance with company law and regulations
33
In the context of company law, what does CFO stand for?
Correct!
Wrong :(
Answer - a) Chief Financial Officer
34
Which document provides detailed information about a companys financial performance, including revenue, expenses, and profit or loss?
Correct!
Wrong :(
Answer - d) Income Statement
35
A company can increase its authorised share capital by passing a special resolution and obtaining approval from the:
Correct!
Wrong :(
Answer - c) Registrar of Companies (ROC)
36
Who is responsible for the day-to-day management of a companys affairs and the implementation of its policies?
Correct!
Wrong :(
Answer - b) Board of Directors
37
In the context of company law, what is the RoC?
Correct!
Wrong :(
Answer - b) Registrar of Companies
38
Which document outlines the objectives and scope of a companys activities and defines its relationship with shareholders and stakeholders?
Correct!
Wrong :(
Answer - a) Memorandum of Association
39
Which of the following is not a type of company registration in India?
Correct!
Wrong :(
Answer - c) Unlimited liability company
40
What is the maximum number of directors allowed in a private limited company in India?
Correct!
Wrong :(
Answer - b) 5
41
The power to approve the appointment of the first auditor of a company lies with:
Correct!
Wrong :(
Answer - b) Shareholders
42
In the context of company law, what is ESOP?
Correct!
Wrong :(
Answer - b) Employee Stock Ownership Plan
43
A company is considered a separate legal entity, which means it has:
Correct!
Wrong :(
Answer - b) Limited liability for its members
44
Which type of company is required to have the word Limited or Ltd in its name?
Correct!
Wrong :(
Answer - b) Public limited company
45
In the context of company law, what does AGM stand for?
Correct!
Wrong :(
Answer - a) Annual General Meeting
46
A person who holds shares in a company and is entitled to receive a portion of the companys profits is known as a:
Correct!
Wrong :(
Answer - b) Shareholder
47
The process of dividing a company into smaller companies, each with its own assets and liabilities, is known as:
Correct!
Wrong :(
Answer - c) Demerger
48
The power to declare dividends lies with:
Correct!
Wrong :(
Answer - c) Shareholders
49
In the context of company law, what does MCA stand for?
Correct!
Wrong :(
Answer - b) Ministry of Corporate Affairs
50
Which financial statement of a company provides information about its cash flows from operating, investing, and financing activities?
Correct!
Wrong :(
Answer - b) Cash Flow Statement
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Question. What is/Introduction of Company Law
Answer. Corporate law (also known as business law or enterprise law or sometimes company law) is the body of law governing the rights, relations, and conduct of persons, companies, organizations and businesses. It thus encompasses the formation, funding, governance, and death of a corporation.