Commerce exams sample papers

Objective Questions on Company Law

company law questions

Company Law Paper of the CS Executive Programme

Question 1
___ may grant exemption to any class of companies with regard to the time & place of AGM.
A
ROC
B
D.C.A
C
C.G
D
NCLT
Question 2
Notice of Adjourn meeting is not required of a meeting is
A
Adjourn sine die
B
Adjourn for more than 30 days
C
None
D
Adjourn for want of quorum
Question 3
The minimum application money should be _____ of nominal value.
A
5%
B
2%
C
3%
Question 4
Public deposit matures and claimed but remains unpaid, penal interest will be in case of small deposits
A
None of these
B
18%
C
16%
D
20%
Question 5
When a private company is converted into public company. In which form it should be
A
Schedule IV
B
Schedule VI
C
None of these
D
Schedule III
Question 6
If the employer is a corporation deduction will be allowed under 3 rd schedule is while determining available surplus ____ % of its paid up capital as at the commencement of the accounting year
A
8.5%
B
7.5%
C
6%
Question 7
A special resolution is passed with
A
60% majority of members present
B
75% majority of members present
C
Simple majority
Question 8
What is the ceiling imposed by the government on company on any deposits
A
25
B
35
C
5
D
10
Question 9
___ report is send by the directors to its members.
A
Audit
B
Annual
C
Statutory
Question 10
Employees employed under educational institutions they will cover under payment of Bonus Act
A
No
B
Yes
Question 11
In which of the following stamp duty & consideration not necessary ____
A
Transmission
B
Transfer
Question 12

Related: Partnership Act MCQ Multiple Choice Question Answer

Alan Private Limited company provided in articles that quorum for the company should be 7 member is the company correct
A
Not correct
B
Correct
Question 13
In case of application for transfer Debenture Certificate is to be issued within ____ months
A
3
B
2
C
1
D
4
Question 14
As per SEBI guidelines the application money should be minimum of___
A
25
B
20
C
15
D
10
Question 15

Related: CA Practice Paper

All money received in the form of application money can be used for business activities
A
No
B
Yes
Question 16
Under which sec. a private company can voluntarily converted into public company___
A
54
B
34
C
44
D
64
Question 17
__  specifies the time limit with in which share certificate is to be delivered
A
sec 112
B
sec 110
C
sec 111
D
sec 113
Question 18
Advance received against orders for the supply of goods or selling of properties will be treated as deposits.
A
No
B
Yes
Question 19
Any company can’t held AGM on a public holiday
A
Yes
B
No
Question 20
If a company which is formed with unlimited liability wants to convert to limited liability then it should pass
A
No need
B
Ordinary resolution
C
Special resolution
Question 21
Loose - leaf minutes to be bound into books at regular intervals of ____ months
A
6
B
9
C
8
D
7
Question 22
Every company must go for under writing
A
No
B
Yes
Question 23

Related: CPT Quantitative Aptitude Test

____ prospectus were issued in order to test the market before finalizing issue size/ price.
A
Deemed
B
Red herring
C
None of the above
D
Shelf
Question 24
Every Company who want to go for public issue and allot shares, they should make an applicant to stock exchange
A
Yes
B
No
Question 25
Consideration shall be paid if share holder surrender his shares
A
Yes
B
No
Question 26
A charge requiring registration shall be filed with the registrar with in____
A
None of the above
B
30 days
C
21 days
D
45 days
Question 27
Part of authorized capital which is offered by the company for subscription.
A
subscribed
B
called up
C
Un called
D
Issued
Question 28
____ includes an engineer, valuationer, accountant
A
Expert
B
Director
C
Promoter
D
Auditor
Question 29
Buy back should be less than or equal to ___ % of total paid up capital
A
40
B
35
C
25
D
30
Question 30
Which companies are exempted to add “Ltd” or “Pvt Ltd” at the end of their name
A
Private
B
Defunct
C
Govt
D
Association not for profits
Question 31
___ is a charge created on a class of assets related to ordinary course of business.
A
None of the above
B
Floating
C
Specific
D
Fixed
Question 32
In case of buy back debt equity ratio should be____
A
1:3
B
3:1
C
1:2
D
2:1
Question 33
A cost auditor makes his report to:
A
Registrar
B
Members of company
C
C. G.
D
Directors of company
Question 34
Company must pass_________ for reducing its share capital
A
S.R
B
C.G permission
C
None of the these
D
O.R
Question 35
____ is the conclusive evidence in case of company that statutory requirements have complied with
A
Certificate of Incorporation
B
Certificate of commencement of Business
Question 36
Reduction & diminution is done under which sec.
A
100 & 96
B
94 & 100
C
100 & 94
D
96 & 100
Question 37
Is the holder of share warrant is eligible for voting?
A
No
B
Yes
Question 38
Notice of statutory meeting should be attested directors among them one should be compulsory M.D.
A
Yes
B
No
Question 39
While calculating Direct tax payable u/s 7 of the payment of Bonus Act which of the following should not be considered?
A
Speculation loss
B
Capital gains
C
Unabsorbed depreciation
D
Profits
Question 40
If the employer is company other than a banking company deduction will be allowed under 3rd schedule  while   determining  available  surplus _____ %  of its paid up  capital  at the commencement of the accounting year
A
7.5%
B
8.5%
C
9.5%
D
None of these
Question 41
OMPL Gas Company shares are totally held by government. The company will be government.
A
True
B
False
Question 42
Maximum members in case of private company
A
50
B
75
C
100
Question 43
Prospectus is required to be issued when issue is for Employees under Employee stock option scheme
A
Yes
B
No
Question 44
Because of Misrepresentation in prospectus an expert will be criminally liable.
A
No
B
Yes
Question 45
The premium amount that can be charged as per companies Act.
A
20%
B
15%
C
None of these
D
10%
Question 46
The min subscription amount is reckoned with amounts payable in___
A
cash only
B
kind only
C
cash as well as kind
Question 47
To issue a share certificate Central Government permission is necessary?
A
No
B
Yes
Question 48
Private Company need not issue prospectus
A
Yes
B
No
Question 49
Minutes should be recorded with in ____ days from the date of conclusion of every meeting
A
30
B
40
C
20
D
10
Question 50
Maximum period that can be extended by appropriate Government for payment of Bonus
A
2 years
B
1 year
C
None of these
D
3 years
Question 51
In the case of partnership firm. Audit is
A
Compulsory
B
Optional
Question 52
Set on can be done for next ________  accounting years
A
6
B
5
C
None of these
D
4
Question 53
Company to accept calls in advance from shareholders they should have permission in
A
MOA
B
AOA
C
BOD
Question 54
Gross profit of an employer in case of any other company other than banking company will be calculated as per_____ under payment of Bonus Act.
A
Schedule I
B
Schedule II
C
Schedule III
D
None of these
Question 55
When Maximum Bonus should be paid
A
AS = Min Bonus
B
None of the above
C
AS < Min Bonus
D
AS > Min Bonus
Question 56
Employees employed through contractors on building operations. Will cover under payment of Bonus Act 1956
A
Yes
B
No
Question 57
Company should file a prospectus in case of conversion of private company into a public company with in ______ from the date of resolution
A
60 days
B
45 days
C
30 days
Question 58
Prospectus is required to be issued when right issue are made
A
Yes
B
No
Question 59

Related: Fundamental Accounting Objective Question

In addition to the contribution employer has to pay ______ % of wages as administration charges.
A
None of these
B
0.18%
C
0.17%
D
0.10%
Question 60
If buy back is made from free resources then what should be created___
A
Debenture Redemption Reserve
B
Statutory liquid Ratio
C
None of the above
D
Capital Redemption Reserve
Question 61
Every buy back shall be completed with in___ month from the date of passing the S.R.
A
8
B
10
C
12
D
6
Question 62
The date of the opening of the subscription list means the beginning of the_____ from the day of the issue of prospectus.
A
5 th
B
20 th
C
10 th
D
3 rd
Question 63
Bonus can be paid by cheque
A
Yes
B
No
Question 64
If the employer is a partnership firm deduction will be allowed under 3 rd schedule is while determining available surplus ____ % of the capital invested
A
6%
B
8.5%
C
7.5%
Question 65
In the process of conversion of a private company into a public company which prospectus must be issued
A
Statement in lieu of prospectus
B
Shelf prospectus
C
Deemed prospectus
Question 66
Employees employed under Seamen as defined in the Merchant Shipping Act, 1958. Will not cover under payment of Bonus Act 1956.
A
No
B
Yes
Question 67
When there is a untrue statement in a prospectus who can sue
A
None of the above
B
Rights issue
C
Subscribed in primary market
D
Subscribed in secondary market
Question 68
If quorum is not present with in____ time the meeting is stand dissolved.
A
2 Hr.
B
1 Hr
C
1 ½ Hr
D
½ Hr
Question 69
Statutory meeting must be held in case of a public company
A
Yes
B
No
Question 70
In case of adjourned meeting is it necessary to wait for the quorum
A
No
B
Yes
Question 71
In the absence of a quorum the proceedings of the meeting will be___
A
Valid
B
Void
Question 72
A
None of the above
B
Loan
C
Capital
D
Fund
Question 73
Buy back by board resolution can only be upto_____
A
15
B
10
C
25
D
20
Question 74
The companies which are formed under special Act. Those companies are called as
A
Statutory companies
B
Registered companies
C
None of these
D
Chartered companies
Question 75
If the employer is a Banking company. Deduction will be allowed under 3 rd schedule is while determining available surplus __ of reserves shown in its B/S at the commencement of the accounting year
A
7%
B
5%
C
6%
Question 76
___ is the charter of a company.
A
Articles
B
Memorandum
Question 77
Definition of prospectus was given under which sec.
A
2 (34)
B
2 (30)
C
2 (32)
D
2 (36)
Question 78

Related: Data Interpretation Questions

Allotment of shares or debentures must be made after getting ______ subscription against entire public issue as per SEBI guidelines.
A
80%
B
100%
C
90%
D
None of these
Question 79
What is minimum period for which deposits can be issued?
A
7 months
B
6 months
C
8 months
D
None of these
Question 80
Transfer of shares in case of private company is
A
Restricted
B
Freely transferable
C
Prohibited
Question 81
Shraddha Shakti Company accepted deposits on March 1 st 2019 and at the time of acceptance they said that the deposits will be repaid on Aug. 1 st 2020. Is the company proposal and deposits are valid
A
Yes
B
No
Question 82
Calls in advance have voting rights
A
No
B
Yes
Question 83
Part of the issued capital taken by public is called______

Related: Questions in General Economics Questions

A
Called - up capital
B
Subscribed
C
Un called capital
D
Paid up capital
Question 84
MoA should be in form ____ in case of a unlimited liability
A
Table B
B
Table E
C
Table A
Question 85

Related: Merchantile Law Practice Questions

Voting Rights are available to share certificate holders.
A
No
B
Yes
Question 86
___ meeting given an opportunity to the member to know discuss on promotion & formation of the company.
A
General
B
EGM
C
Statutory
Question 87
An employee of a Seasonal factory will be given minimum bonus if he had not worked for sufficient days
A
Yes
B
No
Question 88
Transfer of shares in the company is
A
Restricted
B
Prohibited
C
Freely transferable
Question 89
Employees   employed   under   any   financial   corporation   established   under   state   financial corporation Act will not cover under payment of Bonus Act.
A
No
B
Yes
Question 90
Company will have fundamental rights.
A
True
B
False
Question 91
Amount received by a company from another company will not be treated as deposit.
A
Yes
B
No
Question 92
Voting right can’t be exercised in case of___
A
Calls in advance
B
Both (a) & (b)
C
None of the above
D
Calls in arrears
Question 93
Maximum capital of private company is
A
1 Crore
B
10 Crore
C
Unlimited
D
50 Lakhs
Question 94
_____ includes any amount borrowed by a company.
A
None of the above
B
Funds
C
Deposits
D
Both (a) & (b)
Question 95

Related: Check your Intelligence, try this Aptitude Test

___ is a charge when it is made specifically to cover assets
A
Floating
B
Both Fixed & Specific
C
Specific
D
Fixed
Question 96
Notice of statutory meeting should be attested by at least.
A
None of these
B
2 directors
C
4 directors
D
3 directors
Question 97
Any charge is satisfied in full then which form is to be file with ROC_____
A
18
B
19
C
20
D
17
Question 98
Failure to comply with the order of NCLT is punishable with an imprisonment upto ___ years.
A
1
B
2
C
3
D
4
Question 99
Employees Employed under Indian Red Cross Society will cover under payment of Bonus Act 1956.
A
Yes
B
No
Question 100
The companies which are formed under companies Act. 1956. They will be called as
A
None of these
B
Chartered companies
C
Statutory companies
D
Registered companies
Question 101
Pre-incorporation contract is also known as __
A
Preliminary
B
legal
C
illegal
D
Provisional
Question 102
Marshel Mathers Ltd is incorporated on Jan 1, 2019. It must hold its first AGM before.
A
Dec 31-2019
B
Dec 31-2020
C
June 30 – 2020
D
June 30-2019
Question 103
In general cases Bonus shall be paid with in
A
None of these
B
8 months
C
7 months
D
6 months
Question 104
Audit of a public company will be counted for the limit of audits
A
Yes
B
No
Question 105
The Provident Fund Scheme is mandatory to employer but not mandatory to employee. Do you agree with this statement?
A
Agree
B
Disagree
Question 106
A poll can be demanded by any member present in person or by proxy if he has voting powers at least equal to:
A
1/30 th
B
1/20 th
C
1/10 th
D
1/5 th
Question 107
Age limit of Directors in case of public company is ___
A
65
B
70
C
80
D
75
Question 108
AGM should be held at
A
Registered office
B
Corporate office
C
Company
There are 108 questions to complete.
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