CMA INTER GROUP-1, 1 & 2

INSTRUCTION TO STUDENT.

1. Student check your question paper in email and what apps. if

not received please contact 044-42068425 on that day between
(9.00 am to 4.30 pm)
2. Student have to write the test in the specified time (10 am to
12pm ) mentioned in time table. In case if they are attending the
class you can write the test when the free on that day.
3. In case of working people they can write the test from 6.30 am to
8.30 am
4. In the answer sheet the student have to mention name, course,
Group( 1 or 1& 2) ,subject name, and numbering on the top of
the each page
5. After finishing the test within 1 hour the student have to scan
each page in the mobile and sent to our academy email id
6. Our academy email id
therracademy@gmail.com

7. In email id (subject) the student have mention group & course

8. No other date is allowed for writing weekly test only on date they
have write.
9. NEXT WEEK TEST will be mentioned in the test question paper
itself. Students have to make note of it.

1
 RR-ACADEMY
CMA INTER (GROUP-I)
LAW AND ETHICS
COMPANIES ACT, 2013
TIME:2 Hrs Marks:50

MULTIPLE CHOICE QUESTIONS (35 Marks)

1. The registered office clause of memorandum of association contains ______

a) The name of the state in which the registered office of the company is to be situated.
b) The name of the city/town only and not that of the state.
c) The name of registrar of companies
d) The complete postal address.

2. Which of the following are the functions of a promoter?

a) Decides name of a company
b) Nomination of directors
c) Settles the details of memorandum and articles
d) All of these

3. The ___________of a government company is appointed or reappointed by the

Comptroller and Auditor General of India.
a) Auditor
b) Company Secretary
c) Both (a) and (b)
d) None of the above

4. Which documents contains the regulations relating to the internal management of a

company?
a) Memorandum of Association
b) Articles of Association
c) Both (a) and (b)
d) None

5. For vetting the memorandum and articles, what fees is to be paid by the promoters.
a) Rs 1,000
b) Rs 500
c) Rs 10
d) NIL

2
6. The Companies are regulated under ________
a) Companies Act, 1596
b) Companies Act, 1957
c) Indian Partnership Act, 1932
d) Companies Act, 2013

7. Company is managed by
a) Shareholders
b) Board of Directors
c) Karta
d) Both (a) & (b)

8. Word 'Corporation' is ____________ than company

a) Narrow
b) Wider
c) A or b
d) All of the above

9. Advantage of incorporated company is

a) Corporate disclosures
b) Common seal
c) Capacity to sue
d) Winding up procedure

10. Joint shareholders are counted as

a) Two
b) No limit
c) 50
d) one

11. Public company shares are dealt in

a) Stock exchange
b) Public
c) Market
d) All of the above

12. Unlimited company may be subsequently converted into limited company

a) True
b) Partly true
c) False

3
 d) None of the above

13. Foreign company must issue prospectus

a) True
b) Partly true
c) False
d) None of these

14. For incorporation or registration

a) MOA must be subscribed
b) AOA must be subscribed
c) Only MOA
d) Both (a) & (b)

15. MOA contains ___________ of company

a) Constitutions
b) Regulations
c) Declaration
d) None of these

16. MOA has clauses

a) 9
b) 7
c) 6
d) 10

17. AOA is also called as ________of the company

a) Regulations
b) Bye-Laws
c) Provisions
d) Both (a) or (b)

18. Tables I includes articles of

a) having share capital
b) Company limited by guarantee
c) Company limited by shares
d) Public company

19. Kinds of meetings are

a) Class Meeting
b) Annual General Meeting
c) Extraordinary General Meeting

4
 d) All of these

20. Which one of the following is NOT an essential feature of a company?

a) Perpetual Succession
b) Unlimited Liability
c) Separate Property
d) Common Seal

21. Which one of the following statement is not true regarding a company?
a) The shares of a company can be transferred
b) It is very simple and easy to form a company
c) It is a separate legal entity
d) It has independence to form its policies

22. Which one of the following is NOT a disadvantage of a company?

a) It does not has a capacity to sue
b) It has more social responsibility
c) Greater tax burden
d) More disclosures

23. Which of the following statement is NOT true regarding a private company?
a) It cannot invite public to subscribe to shares or debentures
b) Restricts the right to transfer its share
c) At least five members are required to form a company
d) It should have at least two directors

24. The minimum paid-up capital required by a public ltd. Is

a) Ten Lakhs
b) Five Lakhs
c) One Lakhs
d) None of the above

25. The maximum managerial remuneration which can be paid by a private company is
a) 11% of net profit
b) 11% of turnover
c) 5% of share capital
d) None of the above

26. In case of a company limited by shares, the members are liable to the extent of
a) Nominal value of share
b) Called up value of shares
c) They are personally liable

5
 d) None of the above

27. A "not for profit" company is permitted as per which section of the Companies Act,
2013?
a) Sec. 3 (i) (iv)
b) Sec. 5
c) Sec. 8
d) Sec. 12

28. The licence to form a company "not for profit" is granted by

a) State Government
b) Registrar
c) High Court
d) Central Government

29. Government company is defined under which section of the Companies Act, 2013?
a) Sec. 2(45)
b) Sec. 2(44)
c) Sec. 2(43)
d) None of the above

30. In a Government Company, the minimum share of Centre and State Government is :-
a) 51% or more of the paid up share capital
b) 5% or more of the issued share capital
c) 51% or more of the authorised share capital
d) None of the above

31. Which amongst the following documents is not required to be filed by a foreign
company with the Registrar?
a) Address of the registered office of the company
b) Address of the principles place of business in India
c) Declaration of Solvency
d) Articles of Association

32. If XYZ is the holding company of P&R Ltd. then, which of the following statement is
not true in this regard.
a) XYZ Ltd. controls the composition of Board of P&R
b) XYZ Ltd. holds more than 50% of the nominal value of the equity shares
c) Both (a) & (b)
d) None of the above

6
33. Which of the following is not a stage of the development of company?
a) Promotion
b) Production
c) Incorporation
d) Commencement of Business

34. Provisions related to accounts, winding up, calls on shares, forfeiture, etc are
contained in
a) Articles of Association
b) Memorandum of Association
c) Prospectus
d) Statement in lieu of prospectus

35. Which one of the following is not a main clause of memorandum of association?
a) Name clause
b) Capital clause
c) Object clause
d) Profit clause

II. Answer the following Questions: (15 Marks)

1. Discuss the provisions of the Companies Act, 2013 regarding issue of bonus shares
(6 Marks)
2. Discuss the powers of the Board of Directors of a company as per the Companies Act, 2013.
(9 Marks)
*****

NEXT WEEK TEST PORTIONS

23.2.2021- COST ACCOUNTING – COST SHEET, RECONCILITATION &

OPERATING COSTING
TIME: 2 HRS, MARKS:50