Tag: company

Quizzes (10) Questions (165)

Questions Related to company

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

In relation to OPC, "resident in india" means a person who has stayed in India for a period of not less than _______ days during the immediately preceding one calendar year

  1. 152

  2. 160

  3. 182

  4. 200
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Only a natural person who is an Indian citizen and resident in India shall be eligible to act as a member and nominee of an OPC. For the above purpose, the term "resident in India" means a person who has stayed in India for a period of not less than one hundred and eighty two days during the immediately preceding one financial year.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

If the Registrar is satisfied that all requirements, have been complied with, he will register the company and issue the ______.

  1. Certificate of commencement of business

  2. Certificate of incorporation

  3. Compliance certificate

  4. Certificate to act as director
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 A Certificate of Incorporation ( is a legal document that is issued by Ministry of Corporate Affairs once a company is successfully registered with them. The Certificate  Of Incorporation is a proof that the company is now registered with the Registrar of Companies. According to Rule 36(13) of the Companies Incorporation Rules, 2014, the certificate of incorporation shall be issued by the Registrar in Form No. INC-11.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Which of the following section of the Companies Act, 2013 defines "Government Company"?

  1. Section 2(54)

  2. Section 2(35)

  3. Section 2(53)

  4. Section 2(45)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Section 2(54) defines "Managing Director"
Section 2(35) defines "Dividend"
Section 2(53) defines "Manager"
Section 2(45) defines "Government company" as a company in which not less than fifty-one per cent. of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, and includes a company which is a subsidiary company of such a Government company.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

A partnership firm cannot become member of the company registered under Section 8 of the Companies Act, 2013.

  1. True

  2. False

  3. Partly true

  4. Partly false
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A partnership firm is not a legal person and cannot be a member of a company. However, since a Section 8 company is a company, the general rule applies that a partnership firm cannot be a member in its own name.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

As per Section 2(69) of the Companies Act, 2013, which of the following person can be treated as "Promoter"?
(I) Who has been named as such in a  prospectus or is identified by the company in the annual return referred to in Section 92. 
(II) Who has control over the affairs of the company, directly or indirectly whether as a shareholder, director or otherwise.
(III) In accordance with whose advice, directions or instructions the Board of Directors of the company is accustomed to act
(IV) Person who is acting in a professional capacity

  1. (I) and (II) only

  2. (II) and (III) only

  3. (II), (III) and (IV) only

  4. (I), (II), (III) of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Section 2(69) defines a promoter as a person who has been named in the prospectus, has control over the affairs of the company, or on whose advice the Board is accustomed to act. Professional capacity (IV) is explicitly excluded from the definition.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Rule 12 of the Companies (Incorporation) Rules, 2014 states that an application for incorporation shall be filed with ROC in _______ in case of one person company or _______ in case of other companies.

  1. Form INC-2; Form INC-5

  2. Form INC-7; Form INC-5

  3. Form INC-7; Form INC-2

  4. Form INC-2; Form INC-7
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under the Companies (Incorporation) Rules, 2014, Form INC-2 was used for One Person Company (OPC) incorporation, while Form INC-7 was used for other companies (though these forms have since been updated/replaced in practice, this reflects the historical context of the question).

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

According to the Companies Act, 2013, which of the following is/are treated as 'non-current investment'?

  1. Investment in Mutual Funds

  2. Investment in Govt. Securities

  3. Investment in Bonds

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Non-current investments are those held for a period exceeding 12 months. Mutual funds, government securities, and bonds can all be classified as non-current investments depending on the company's intent and holding period.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Which of the following is not an object of the Companies Act, 2013?

  1. To encourage transparency

  2. To encourage profitability

  3. To encourage accountability

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Companies Act, 2013 aims to promote transparency, accountability, and good governance. While profitability is a goal of the business itself, it is not an explicit legislative object of the Act.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Consider the following statements :
1. Under the new Company Act, 2013, a director is treated as related party.
2.  Under the new Company Act, 2013, an 'Official Liquidator' should be appointed under subsection (1) of Section 359.
3. Life Insurance Corporation cannot be treated as a 'Public Financial Institution'.
Which of the above statement/s is/are not correct

  1. Only 3

  2. Only 2

  3. 1 and 3

  4. 1 and 2
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

LIC is one of the financial institutions to be established in India after independence. The full form of LIC is life insurance corporation and it was established in 1956. The main aim behind the establishment was to spread the message of life insurance in the country. Also, it was required to mobilize people's savings.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Which of the following statements is correct?

  1. The 'Corporate Governance' is about ethical conduct only.

  2. The 'Corporate Governance' is beyond the realm of law.

  3. The 'Corporate Governance' stems from the culture and mind set of management and cannot be regulated by legislation alone.

  4. All of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Corporate governance is widely recognized as a culture and mindset that goes beyond mere legal compliance. Legislation provides a framework, but effective governance requires ethical leadership.