Corporate Prep Test

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Corporate Prep Test

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MCQs focusing on prospectus, types, contents, misstatements, and liabilities under company law.

Prospectus- Practice Test 1

1 / 50

When after raising money through prospectus from public offer a Company alters its objects and still keeps the unutilised collection in its own account, in that situation

2 / 50

A Company while issuing shelf prospectus must prepare all informations regarding Memorandum in Form

3 / 50

After raising money through prospectus from public, can the money raised be utilised for any other purpose than the mentioned object in the prospectus.

4 / 50

Misstatement in a prospectus also attracts civil liability.

5 / 50

Every company must issue an abridged prospectus with the application form for purchase of securities. In case of default by a company, they will be liable to pay penalty of Rs._________

6 / 50

The obligations cast on a prospectus and on a red herring prospectus are applicable in the same manner. Any variation between the two can be pointed and highlighted.

7 / 50

A company while proposing to issue a red herring prospectus shall file it with R.O.C. _____________ to the opening of the subscription list and the offer

8 / 50

What is the exact time for a company to issue a red herring prospectus after proposing to make an offer of securities.

9 / 50

What is the validity period of issue of shelf prospectus?

10 / 50

A prospectus when published for advertisement, must specify the Contents of Memorandum specifically

11 / 50

For mis-statement and false statement in prospectus, criminal liability is attracted:

12 / 50

Directors’ consent is required and included while issuing a prospectus, so prospectus contain consent of Directors.

13 / 50

A printed document issued by a company inviting offers from public to subscribe or purchase shares and debentures is called

14 / 50

Is there any document called “abridged prospectus”?

15 / 50

Is there a document called ‘Prospectus’ in a limited meaning meant for a private company?

16 / 50

Who can issue a prospectus?

17 / 50

Does a prospectus include any notice, circular and advertisement?

18 / 50

When a public company has issued prospectus without receiving the minimum subscription it is called________

19 / 50

Who has certain remedies for misstatement in the prospectus against the company and the persons issuing the Prospectus?

20 / 50

A prospectus may contain a statement purporting to be made by an expert. The term “expert” includes.

21 / 50

Which of the documents is not filed to the registrar at the time of incorporation?

22 / 50

The document which invites the public for subscribing capital in the form of shares and debenture is called

23 / 50

The ‘Golden Rule’ for framing of a prospectus was laid down in the case of

24 / 50

Shelf prospectus’ means a prospectus issued by

25 / 50

__________means a prospectus issued by any financial institution or bank for one or more issues of the securities specified in that document.

26 / 50

The Companies (Amendment) Act 1988 provide that the companies should furnish along with the application form for shares or debentures, an__________instead of complete prospectus.

27 / 50

Every prospectus

28 / 50

The statement in lieu of prospectus must be filed with the registrar at least______before any allotment of shares is made.

29 / 50

A company issues prospectus within______of its registration.

30 / 50

Prospectus by implication is also known as_________

31 / 50

The main advantage of _________is that company can save underwriting expenses.

32 / 50

____________Gives only a general idea about securities.

33 / 50

Which of the following documents contains bye-laws that govern the internal management of a company:

34 / 50

Every person who knowingly issues a Prospectus without registration, is punishable _______________

35 / 50

The Prospectus must be issued within ______________

36 / 50

______ years of imprisonment will be imposed in case  of issue  of prospectus with untrue statements

37 / 50

         years of imprisonment will be imposed in case of issue of prospectus with untrue statements

38 / 50

Which one of the following has a right to claim compensation for any loss due to mis-statement in prospectus

39 / 50

Information memorandum + shelf prospectus together constitutes

40 / 50

Abridged prospectus means__________

41 / 50

A prospectus is to be issued within _______days of registration.

42 / 50

______ years of imprisonment will be imposed in case  of issue  of prospectus with untrue statements

43 / 50

Which one of the following has a right to claim compensation for any loss due to mis-statement in prospectus

44 / 50

Information on memorandum + shelf prospectus together constitute___________

45 / 50

A public company can issue the prospectus to offer its shares and debenture, whereas a private company cannot issue prospectus.

46 / 50

If a subscribed person of the securities suffers any loss or damage because of a misleading statement in the prospectus, then the company is liable to pay for the compensation to every subscribed person of the securities.

47 / 50

If a company issues a prospectus then it is responsible for the statement in it.

48 / 50

If a company issues prospectus in contravention, then the company will be punishable to pay an amount of Rs.50,000 which may extend up to Rs.3 lakhs.

49 / 50

If a company offers the shares or debentures to public through a prospectus then it is a public issue.

50 / 50

According to the Companies act 2013, there are four types of the prospectus, abridged prospectus deemed prospectus, red herring prospectus, and shelf prospectus.

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