S.Y.B.com Business Law

1. The minimum number of members to form a
Private Limited Company is

a. 1

b. 2

c. 7

d. 5

ANS: B

 

2. The minimum number of members to form a
Public Limited Company is

a. 1

b. 2

c. 7

d. 5

ANS: C

 

3. The maximum number of members to form a
Private Limited Company is…

a. 50

b. 100

c. 150

d. 200

ANS: D

 

4. The maximum number of members to form a
Public Limited Company is…

a. 50

b. 100

c. 200

d. No Limit

ANS: D

 

5. The Life Insurance Corporation (LIC) is
following type of Company..

a. Chartered Company

b. Statutory Company

c. Government Company

d. Foreign Company

ANS: B

 

6. The Oil and Natural Gas Corporation Ltd
(ONGC) is following type of Company..

a. Chartered Company

b. Statutory Company

c. Government Company

d. Foreign Company Chetana’s

ANS: C

 

7. Which of the following is not the feature of
Private Limited Company?

a. Minimum 2 Directors

b. Restriction for invitation to public

c. Issue of Prospectus

d. Less compliances

ANS: C

 

8. Which of the following is not the feature of
Public Limited Company?

a. Minimum 3 Directors

b. Restriction for invitation to public

c. Issue of Prospectus

d. More compliances

ANS: B

 

9. Which doctrine protects “Company against
Outsiders”?

a. Doctrine of Ultra Vires

b. Doctrine of Constructive Notice

c. Doctrine of Indoor Management

d. Doctrine of Lifting of Corporate Veil

ANS: B

 

10. Authorized capital is also known as….

a. Issued Capital

b. Nominal capital

c. Subscribed capital

d. Called up capital

ANS: B

 

11. Offer of securities or invitation to
subscribe securities under private placement shall be made to
——————–maximum number of person in the aggregate in a financial
year.

a. 50

b. 100

c. 150

d. 200

ANS: D

 

12. Shelf prospectus remains valid upto a. 6
months

b. 1 year

c. 2 years

d. 5 years Chetana’s

ANS: B

 

13. A company can change terms of contracts
mentioned in prospectus by way of:

a. Ordinary resolution though postal ballot

b. Ordinary resolution in meeting

c. Special resolution in meeting

d. Special resolution through postal ballot

ANS: D

 

14. Which one of the following is not the
content of the Memorandum of Association?

a. Name clause

b. Registered office clause

c. Objects clause

d. Board of Directors clause

ANS: D

 

15. Only a natural person who is an Indian
citizen and who has stayed in India for a period of at least _____ days during
the immediately preceding one calendar year shall be eligible to incorporate a
OPC.

a. 180 days

b. 181 days

c. 182 days

d. 183 days

ANS: C

 

16. Ultra vires loans granted by the company
are

a. Void

b. Voidable

c. Valid

d. Illegal

ANS: A

 

17. A subsidiary of a government company is
also treated as a

a. Government Company

b. Public Company

c. Private Company

d. All of the above

ANS: A

 

18. Age limit of Directors in case of private
company is ___________

a. 65

b. 70 Chetana’s

c. 75

d. No limit

ANS: D

 

19. Every company shall file with Registrar a
copy of the annual return, within _______ days from the date on which annual
general meeting is held.

a. 50

b. 75

c. 60

d. 90

ANS: C

 

20. An independent director who has tendered
resignation from the Board shall be replaced by a new independent director
within ———— from the date of such resignation.

a. one month

b. two months

c. three months

d. four months

ANS: B

 

21. A shareholder holding shares of nominal
value of not more than ———— is a small 
shareholder.

a. 5 ,000

b. 10,000

c. 15,000

d. 20,000

ANS: D

 

22. A person appointed as a director is
required to give his written consent ———————– to the company.

a. on or before his appointment as director

b. within 10 days of his appointment as director

c. within 20 days of his appointment as director

d. None of the above

ANS: A

 

23. An independent director shall hold office
for a term up to ————- on the Board of a company.

a. three consecutive years

b. four consecutive years

c. five consecutive years

d. None of the above Chetana’s

ANS: C

 

24. Every company is required to furnish
Director Identification Numbers of all its directors to the Registrar within
————- of the receipt of intimation regarding DIN from the directors.

a. ten days

b. fifteen days

c. twenty days

d. thirty days

ANS: B

 

25. A person is permitted to hold office as
director (including any alternate directorship) in maximum twenty companies of
which maximum number of public companies in which he can be appointed as director
shall not exceed ————.

a. Five

b. Eight

c. Ten

d. Twelve

ANS: C