COMPANY LAW

1] Unlimited company means a company-

A] Having any limit on the rights of its members

B] Having any limit on the privileges of its members

C] Not having any limit on the liability of its members

D] Having any limit on the liability of its members

ANSWER-{C} not having any limit on the liability of its members.

2] The provision relating to formation of company is stated in-

A] Section 3

B] Section 1

C] Section 2

D] Section 4

ANSWER-{A} Section 3

3] How many persons can form a public company?

A] Two or more persons

B] Four or more persons

C] Five or more persons

D] Seven or more persons

ANSWER-{D} seven or more persons

4] How many persons can form a private company?

A] Four or more persons

B] Two or more persons

C] Six or more persons

D] Eight or more persons

ANSWER- {B} two or more persons

5] The documents and information for registration of a company shall be filed with the _________within
whose jurisdiction the registered office of a company is proposed to be situated.

A] Promoter

B] Director

C] Registrar

D] Member

ANSWER-{C} Registrar

6] Registration is compulsory in case of-

A] Company

B] Partnership

C] Sole proprietorship

D] Hindu Undivided Family

ANSWER- {A} Company

7] Company is ______________existing independent of its members.

A] Not distinct legal persona

B] May or may not be distinct legal persona

C] Both (1) and (2)

D] Distinct legal persona

ANSWER-{D} Distinct legal persona

8] Partnership firm is ___________from the persons who form it.

A] Distinct

B] Not distinct

C] Both (1) and (2)

D] Identical

ANSWER- {B} Not distinct.

9] Who is the owner of property in case of company?

A] Company

B] Members

C] Company or members

D] Partners

ANSWER- {A} Company

10] Which is an outstanding feature of a company?

A] Dependent corporate existence

B] Independent corporate existence

C] Both (1) and (2)

D] Neither (1) nor (2)

ANSWER- {B} Independent corporate existence

11] The creditors of a partnership firm are creditors of individual partners and a decree against the firm
can be executed against the-

A] Partners jointly

B] Partners separately

C] Partners jointly and severally

D] Directors jointly and severally

ANSWER-{C} Partners jointly and severally

12] Creditors of a company can proceed-

A] Against its partners

B] Not against the company but against its members only

C] Against company and its members both

D] Only against the company and not against its members

ANSWER- {D} Only against the company and not against its members.
13] Who are the agents of the partnership firm?

A] Partners

B] Directors

C] Promoters

D] Members of company

ANSWER-{A} Partners

14] A company being an ________, cannot act on its own, it can only act through natural persons.

A] Natural person

B] Artificial person

C] Partnership

D] Hindu Undivided Family

ANSWER- {B} Artificial person.

15] When the legal entity of a corporate body is misused for fraudulent and dishonest purposes, the
individuals concerned will not be allowed to take shelter behind the corporate personality. In such cases
court break through the corporate shell and apply the principle of-

A] Distinct legal entity

B] Common seal

C] Independent corporate existence

D] Lifting or piercing the corporate veil

ANSWER-{D} Lifting or piercing the corporate veil.

16] Though a company is a legal person, it is _______under the Constitutional Law of India or the
Citizenship Act, 1955.

A] Citizen

B] Natural person

C] Not a citizen

D] Both (1) and (2)

ANSWER- {C} Not a citizen

17] Only two members are sufficient to form a-

A] Public Company

B] Private Company

C] Both (1) and (2)

D] Government Company

ANSWER- {B} Private Company

18] There is no restriction on transfer of shares in case of a-

A] Public company and private company

B] Subsidiary company

C] Private company

D] Public company

ANSWER-{D} Public company.

19] Pre-incorporation contracts which are also called as-

A] Preliminary contracts

B] Final contracts

C] Non-preliminary contracts

D] Neither (1) nor (2)

ANSWER- {A} Preliminary contracts.

20] Pre -incorporation contracts are purported to be made on behalf of a company-

A] After its winding up

B] After its registration

C] Before its incorporation

D] After its incorporation

ANSWER-{C} Before its incorporation.