Company & Classes – Practice Test 1

MCQs covering types of companies, classification, public vs private companies, and statutory distinctions frequently tested in exams.

Company & Classes- Practice Test 1

1 / 50

If any person carry on business under any name of which the words “Private Limited” are the last words, unless duly incorporated as a private company with limited liability, punishable with fine which shall not be less than five hundred rupees but may extend to ______ for which that name or title has been used

Ten thousand rupees for every day

Four thousand rupees for every day

One thousand rupees for every day

Two thousand rupees for every day

2 / 50

Which class of companies shall appoint at least one woman director in the Board.

Every private company

Every listed public company

Every unlisted public company

(B) & (C) (unlisted Public Company meeting Certain Criteria)

3 / 50

A company, which has been incorporated under the Act and is required to appoint at least one woman director in its Board, shall comply with such provisions _______ from the date of its incorporation

Within a period of six months

Within a period of two months

Within a period of four months

Within a period of one months

4 / 50

Anil, a director of a company, intend to avail housing loan from a bank. The bank asks to give guarantee of his company. Whether the company give guarantee

Yes, it may give, if consent of the members is obtained in the general meeting of the members

Yes, it may give, if consent is obtained of all other directors on the Board

Yes, it may give

No, it cannot give

5 / 50

Which company cannot contribute any amount directly or indirectly to any political party

A Government Company

A One Person Company

A Private Company

A Public Company

6 / 50

A company was incorporated one year back. Can this company may make political contribution

Yes, it can make contributing only to a ruling political party in the centreYes, it can make contributing only to a ruling political party in the centre

Yes, it can make

No, it cannot make, since three years have not been elapsed since incorporation

Yes, it can make after obtaining prior approval from the members in the general meeting

7 / 50

A company may make contribution to National Defence Fund, subject to

No need of any approval and the company may directly contribute to the NDF

Authorised by the AoA

Authorised by the MoA

Prior approval in the general Meeting

8 / 50

Whole-time key managerial personnel can hold office in ______ at the same time.

No limit

One company and its subsidiary company

Only (B) and (C)

One company only

9 / 50

Whether the Central Government can amalgamate two or more companies

Yes, where it is essential in the public interest that two or more companies amalgamate, the Central Government may, by order notify in the official gazette, provide for the amalgamation of those companies into a single company.

The Central Government suomotu cannot amalgamate.

10 / 50

Which companies are required to have Vigil Mechanism

Companies which have borrowed money from banks and public financial institution in excess of 50 crores rupees

Listed public companies

Companies which accept deposits from public

All of the above

11 / 50

The unlisted company is required to appoint internal auditor, if ______

Outstanding loans or borrowings from banks or public financial institution exceeding 100 crore rupees or more at any point of time during the preceding financial year.

There is need to appoint internal auditor of the paid up capital of the unlisted company is Rs. 50 crore rupee or more during the preceding financial year.

Turnover of 200 crore rupee or more during the preceding financial year, or outstanding deposits of twenty five crore rupee or more at any point of time during the preceding financial year.

All of the above

12 / 50

The register and indices maintained pursuant to section 88 and copies of return prepared pursuant to section 92, shall be open for inspection during business hours at such reasonable time on every working day as the board may decide. What shall be considered by the company as reasonable time?

The reasonable time of not less than two hours on every working day shall be considered by the company.

The reasonable time of not more than two hours on every working day shall be considered by the company.

The reasonable time of two hours on every working day shall be considered by the company.

None of the above

13 / 50

If promoters of any listed company, which has formed a joint venture company with another company have pledged or hypothecated or created charge or lien in respect of any security of the listed company in connection with such joint venture company, the particulars of such pledge, hypothecation, charge and lien shall be entered in the register members of the listed company

Within 21 days from such an event

Within 28 days from such an event

Within 15 days from such an event

Within 7 days from such an event

14 / 50

What is punishment for the company and its officers, if any defaults is made in compliance with any of the provisions of Companies (Management and Administration) Rules, 2014.

Punishable with fine which may extend to Rs.2000/- and where the contravention is a continuing one, with a further fine which may extend to Rs.500/- for every day after the first during which such contravention continues

Punishable with fine which may extend to Rs.3000/- and where the contravention is a continuing one, with a further fine which may extend to Rs.500/- for every day after the first during which such contravention continues.

Punishable with fine which may extend to Rs.4000/- and where the contravention is a continuing one, with a further fine which may extend to Rs.500/- for every day after the first during which such contravention continues.

Punishable with fine which may extend to Rs.5000/- and where the contravention is a continuing one, with a further fine which may extend to Rs.500/- for every day after the first during which such contravention continues.

15 / 50

Who is the concerned person to be held responsible for maintenance of security of electronic records of any Company

The M.D with C.S and /or any other director or responsible officer of the Company as per decision of the Board of Directors.

The M.D

The C.S

The director or any officer

16 / 50

All the Companies have a bounden duty to create a charge and register the same with the ROC within ______ days.

30 days

15 days

60 days

40 days

17 / 50

A Company is duty fraud to create and change on following assets

Assets situated outside Bharat

Assets situated inside Bharat

All tangible assets

All the three

18 / 50

For reservation of Name of a Company, which form has to be used.

SPIC

Spice

Spice +

None

19 / 50

One Person Company (OPC) can be converted into a public Company

After fulfilling compliance of Section 18 of the Company Act for conversion

After increasing the number of members to seven and number of directors to three

After maintaining minimum paid up capital as per requirements of the Act.

All above

20 / 50

Amongst the following categories of persons, who are eligible to incorporate a One Person Company?

A natural person who is an Indian citizen

A natural person being a member of one OPC

A natural person who is a nominee in more than one OPC

A natural personal being a foreign national

21 / 50

Can a minor became_____ in OPC (One Person Company)

Member

Nominee

Hold shares with beneficial interest any

Minor cannot be permitted for any thing

22 / 50

Who is authorised to be a signatory for the purpose of authentication for any Company or contracts to be executed for and on behalf of any Company

Independent Director

Authorised employee or designated officer by the Board

Any of the key managerial personnels (KMP)

Only (B) and (C)

23 / 50

Services of a document on a Company can be treated as proper by sending the same to

Registered office

Liasion offices

Head office

Corporate office

24 / 50

No attempt to convert a public Company to a private Company shall not be unless it is approved by

Central Government

State Govt

O.C

SEBI

25 / 50

Each and every Company shall have to get printed on its letters head of business correspondences

Name & address of the Company & Address of the Registered office

Telephone no for communication, Email & web site address

CIN means Corporate Identity Number & Fax no

All from A to C

26 / 50

Registered office of a company can be shifted from one place to another place in a jurisdiction of the same Registrar by passing

A board resolution

A special resolution

A resolution through circulation

An ordinary resolution

27 / 50

Where company has changed its name or names during the last _______, it shall paint or affix or print, as the case may be, along with its name, the former name or names so change during the last two years.

Four years

Two years

One year

Three years

28 / 50

No company shall change the place of its _______ from the jurisdiction of one Registrar to the jurisdiction of another Registrar within the same state unless such change is confirmed by the Regional Director.

Registered office

Corporate office

Branch office

Head office

29 / 50

Which of the following is not correct?

Company shall have perpetual succession

Company shall have a common seal

Company may hold and dispose of the property in its own name

Company can sue and be sued

30 / 50

Every company shall paint or affix its _______, and keep the same painted or affixed on the outside of every office or place in which its business is carried on.

Name and address of its head office

Name and address of its corporate office

Name and address of its registered office

Name and address of its representative office

31 / 50

In the case of a public Ltd Company, the name shall have the last word “limited” except in the case of

A Company registered u/s 8

A Company established by Central Govt.

A Company established by state Govt.

All of the above

32 / 50

A public Company may be

A Company limited by shares

A Company limited by guarantee

An unlimited Company

All the option are applicable

33 / 50

What includes public offer?

Public offer includes

Offer for sale

Initial public offer

Further issue of public offer

All the above

34 / 50

There is no bar for a public company to issue securities

Through a right issue or a bonus issue

Through private placement

Through prospectus

All the above

35 / 50

The head of the Board of Directors, by whatever designation may hold (Chairman, Chair person or CEO) should have the leadership qualifies with

Business acumen

Ability of a motivator

Ling vision and skills for immediate solution of problems

All the above

36 / 50

ERM stands for?

Entrepreneurial Risk Management

Entity Risk Management

Enterprise Risk Management

Entrepreneur Risk Management

37 / 50

From the following, which one is not an objective of risk management?

Eliminate risk

Identify costs involved

Prepare a list of threats

Prepare a list of vulnerabilities

38 / 50

At least ____ days notice is required to call a general meeting of a Company.

5 days

10 days

21 days

None

39 / 50

The central Govt. can order for investigation either by a Director of a Company or SFIO (Serious fraud Investigation Officer) in the following case

On receipt on request of any Dept of the Central Govt. or state Govt.

On receipt of intimation passing of a special resolution by a Company

On receipt of report from the Registrar or Inspector u/s 208

In public interest

All of the above

40 / 50

Can a person incorporate one person co?

Yes

41 / 50

Can there be a one person co?

Yes

42 / 50

In a case Pvt ltd co. the minimum number of members should be two and in case of a public ltd co the minimum number of members should be seven. In both the cases where the minimum number is reduced from the minimum, will the Co exist?

Yes

43 / 50

When all the seven members of a Pvt Ltd .Co. died in a plane crash will the Pvt. Ltd Co. Still exist?

Yes

44 / 50

Is a company identical with a L.L.P. (Limited liability partnership)

Yes

45 / 50

Characteristics of a company are

Perpetual succession

Limited liability

Corporate personality

All of the above

46 / 50

A company is an association of

Persons

Natural

Artificial

All of the above

47 / 50

The company’s nationality is decided by its

Registered office

Shareholders

Place at books of accounts are kept

None of the above

48 / 50

Maximum no. of persons in case of partnership banking business is______

49 / 50

East India Company is an example of

Chartered company

Statutory Company

Registered company

None of these

50 / 50

Certificate of commencement of business is not required by

A private company

A public company

Both public and private companies

Private company subsidiary to a public company

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