Formation of Company MCQs - MCQ On Incorporation of Company - 2021 - 2022 Exam

1/24/22, 5:17 PM Formation of Company MCQs | MCQ on Incorporation of Company | 2021 - 2022 Exam
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Formation of Company MCQs | MCQ on Incorporation

of Company | 2021 - 2022 Exam
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Formation of Company
MCQs
MCQ on Incorporation
of Company
Multiple Choice
Questions and Answers (MCQS)
Companies Act 2013

MCQs (2021 – 2022)
Given
below are Formation of Company MCQs multiple choice questions and
answers updated for 2021 –
2022 exams. These MCQ on Incorporation of Company
are useful for B.Com, BBA, M.Com, MBA, UGC –
NET (NTA NET), CA – IPCC, CMA
Intermediate, CS Foundation CSEET Exam and all other competitive
exams
of commerce stream students.
Choose
the Correct Alternative:
1. An incorporated company may be a company:

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a) Limited by shares
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b) Limited by guarantee
c) An unlimited company
d) All of the above
Ans:
d) All of the above
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2. Pre-incorporation contracts are entered into by:
a) Members
b) Directors
c) Promoters
d) Shareholders
Ans: c)
Promoters
3. The process of incorporation of a company is carried out

by:
a) Members
b) Directors
c) Promoters
d) Shareholders
Ans:
c) Promoters
4. Which of the following is true about pre-incorporation

contract?
a) Company is not bound by the preliminary contract after

registration.
b) A company cannot enforce the preliminary agreement.
c) A registered company cannot ratify the pre-incorporation

contract.
d) All of the above
Ans:
d) All of the above
Also you can read Company Law Chapter wise MCQs together with some additional Questions:
1. Company Law MCQs (130+ Questions)
2. Formation of Companies MCQs
3. MCQ on Memorandum and Articles of Association
4. Kinds of Companies MCQ
Download & Customize

5. MCQs on Company Meetings Chrome
6. MCQs on Board of Directors

7. MCQ on Winding Up of A Company
*****
5. What is known as charter of a company?
a) MOA
b) AOA
c) Prospectus
d) Certificate of incorporation
Ans:
a) MOA
6. Which one of the following statement is false?
a) A private as well public company without a share capital

can start its business immediately after getting
the certificate of
incorporation.
b) All private and public companies having a share capital is

required to obtain certificate of
commencement of business to start its
business.
c) A company can be created without incorporation.
d) One person company can be formed by only one person.
Ans:
c) A company can be created without incorporation.
7. The certificate of incorporation is conclusive evidence

that:
a) All the requirements for registration have been duly

complied with.
b) The company is duly registered.
c) The company came into existence from the date mentioned in

the certificate.
d) All of the above
Ans:
d) All of the above
8. Which documents to be filed with the registrar of

company for incorporation?
a) Memorandum of association
b) Articles of association
c) Declaration
d) All of the above
Ans:
d) All of the above
9. The minimum number of members that required while you

are registering a public company is:
a) 2
b) 7
c) 50
d) 100
Ans:
b) 7.
10. Which of the following documents is compulsory for

incorporation of a company?
b) Articles of association
c) Declaration
d) All of the above
Ans:
11. How many proposed names of a company have to be

submitted by ROC at the time of incorporation?
a) 2
b) 4
c) 6
d) 8
Ans:
c) 6
12. On registration, the ROC will issue a certificate of

incorporation in Form:
a) INC – 10
b) INC – 11
c) INC – 12
d) INC -13
Ans:
b) INC – 11
13. After registration what status company acquires?
a) Firm
b) Association of Person
c) Body of Individuals
d) Artificial judicial person
Ans:
d) Artificial judicial person
14. The certificate of incorporation is that the company is

entitled to commence business. False
15. A company is said to have been registered when:

a) When it files the
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updates with the ROC.
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b) When the certificate of

incorporation has been issued.
c) After getting certificate of
commencement of business
d) After starting business
Ans:
b) When the certificate of incorporation has been issued.
16. A company incorporated by the act of the parliament is:
a) Statutory Company
b) Private Company
c) Chartered Company
d) Government Company
Ans:
a) Statutory Company
(Hint: A statutory company is one which is incorporated under

a special Act of parliament or state
legislature)
17. Application for approval of name of a company is to be

made to:
a) Registrar of Companies
b) SEBI
c) Government of India
d) RBI
Ans:
a) Registrar of Companies
18. Which of the following is probably the most important

reason for incorporating?
a) Limited liability of shareholders
b) More money for investment
c) Increased flexibility
d) Shared management.
Ans:
a) Limited liability of shareholders
19. Which of the following is not file to the registrar at

the time of incorporation?
a) Memorandum of Association (MOA)
b) Articles of Association (AOA)
c) Statutory declaration of Compliance
d) Prospectus
Ans:
d) Prospectus
20. The promoters have to submit how many, proposed names
to ROC for selecting a name for a
company?
a) 1
b) 2
c) 3
d) 6
Ans:
d) 6
21. Pre-incorporation contract is also known as:
a) Statutory Contract
b) Preliminary Contract
c) Bilateral Contract
d) Uni-lateral contract
Ans:
b) Preliminary Contract
22. Promoter is a person who:
a) Takes part in the incorporation of a company.
b) Enters into preliminary contracts.
c) Takes necessary steps to accomplish the object for which

company is started.
d) All of the above
Ans:
d) All of the above
23. Legal position of a promoter of a company is:
a) That of an agent
b) That of a trustee
c) Fiduciary position
d) That of solicitor
Ans:
c) Fiduciary position
24. A company can be created without incorporation. False
25. Registration of a company is compulsory.
26. The common seal of the company should have:
a) The company’s name
b) The words ‘corporate seal’
c) The place of the company
d) All the above.

Ans:
d) All the above.
27. Power to use official seal of the company outside India

is to be authorized by:
a) Article of Association
b) Memorandum of Association
c) Both Memorandum and Article of Association
d) Power of attorney
Ans: a)
Article of Association
28. As per the Companies Act’ 2013 both private and public
companies having share capital have to
obtain ___ to start business.
a) Certificate of Incorporation
b) Certificate of Commencement
Ans:
b) Certificate of Commencement
29. In case of private companies, MOA must be signed by:
a) 1 (One) subscribers
b) 2 (Two) subscribers
b) 3 (Three) subscribers
d) 7 (seven) subscribers
Ans:
30. In case of public companies, MOA must be signed by:
a) 1 (One) subscribers
b) 3 (Three) subscribers
Ans:
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1/24/22, 5:17 PM Formation of Company MCQs | MCQ on Incorporation of Company | 2021 - 2022 Exam

HOME B.COM NOTES QUESTION PAPERS SOLVED PAPERS MCQ

Home  Company Law MCQs

Formation of Company MCQs | MCQ on Incorporation

Companies Act 2013

1. An incorporated company may be a company:

d) All of the above

2. Pre-incorporation contracts are entered into by:

3. The process of incorporation of a company is carried out

4. Which of the following is true about pre-incorporation

a) Company is not bound by the preliminary contract after

b) A company cannot enforce the preliminary agreement.

c) A registered company cannot ratify the pre-incorporation

d) All of the above

1. Company Law MCQs (130+ Questions)

2. Formation of Companies MCQs

3. MCQ on Memorandum and Articles of Association

4. Kinds of Companies MCQ

Download & Customize

6. MCQs on Board of Directors

5. What is known as charter of a company?

6. Which one of the following statement is false?

a) A private as well public company without a share capital

b) All private and public companies having a share capital is

c) A company can be created without incorporation.

d) One person company can be formed by only one person.

7. The certificate of incorporation is conclusive evidence

a) All the requirements for registration have been duly

b) The company is duly registered.

c) The company came into existence from the date mentioned in

d) All of the above

8. Which documents to be filed with the registrar of

d) All of the above

9. The minimum number of members that required while you

10. Which of the following documents is compulsory for

d) All of the above

11. How many proposed names of a company have to be

12. On registration, the ROC will issue a certificate of

13. After registration what status company acquires?

d) Artificial judicial person

14. The certificate of incorporation is that the company is

15. A company is said to have been registered when:

b) When the certificate of

d) After starting business

16. A company incorporated by the act of the parliament is:

(Hint: A statutory company is one which is incorporated under

17. Application for approval of name of a company is to be

18. Which of the following is probably the most important

a) Limited liability of shareholders

b) More money for investment

19. Which of the following is not file to the registrar at

a) Memorandum of Association (MOA)

b) Articles of Association (AOA)

c) Statutory declaration of Compliance

21. Pre-incorporation contract is also known as:

22. Promoter is a person who:

a) Takes part in the incorporation of a company.

b) Enters into preliminary contracts.

c) Takes necessary steps to accomplish the object for which

d) All of the above

23. Legal position of a promoter of a company is:

24. A company can be created without incorporation. False