Tag: company

Questions Related to 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


Correct Option: B

An association not for profit registered under the Companies Act, 2013 popularly known as__.

  1. Section 8 company

  2. Section 25 company

  3. Section 18 company

  4. Section 20 company


Correct Option: A

Licence under Section 8 of the Companies Act, 2013, may be granted by Central Government if ____________.
(i) It is intended to form a company for promoting commerce, art, science, religion, charity or any other useful object
(ii) The company allows the payment of dividend to its members
(iii) Apply its profits or other income in promotion of its objects
Select the correct the answer from the options given below-

  1. (i), (ii) & (iii) of the above

  2. (ii) of the above

  3. (ii) & (iii) of the above

  4. (i) & (iii) of the above


Correct Option: D

Section 2(45) of the Companies Act, 2013 defines a "Government company" as any company in which not less than ___________ 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 or partly by one or more State Governments.

  1. 31%

  2. 41%

  3. 51%

  4. 61%


Correct Option: C

Characteristic of a company ..........
(I) Transferability of profits
(II) Property of company is joint property of shareholders
(III) Compulsory Common Seal
Select the correct answer from the options given below:

  1. (I) and (II)

  2. (II) and (III)

  3. (III) and (I)

  4. None of the above


Correct Option: D

Which of the following case clearly established the principle that company is a legal person distinct from its members?

  1. Salman Vs Salman & Co. Ltd.

  2. Salomon Vs Salomon & Co. Ltd.

  3. Salsman Vs Salsman & Co. Ltd.

  4. Smith Vs Anderson


Correct Option: B

"A company, in broad sense, may mean an association of individuals formed for some purpose" was observed in?

  1. Anderson v. Smith

  2. Smith v. Anderson

  3. Anderson v. Shaw

  4. None of the above


Correct Option: A

In the case of a company limited by guarantee, the members are liable only to the extent of the amount guaranteed by them. 

  1. true

  2. false

  3. partly true

  4. partly false


Correct Option: A

Preference shares are those which carry the preferential rights as to____.

  1. The payment of dividend at a fixed rate

  2. The return of capital on winding up of the company

  3. Both (A) & (B)

  4. Either (A) or (B)


Correct Option: C

Statement A: A company dies with the death of its shareholders.
Statement B: In the case of a private company, every member owing fully paid up shares can freely transfer shares held by him.
Select the correct the answer from the options given below:

  1. Statement A is correct but Statement B is incorrect

  2. Statement B is correct but Statement A is incorrect

  3. Statement A is correct and Statement B is correct explanation of Statement A

  4. Statement A and Statement B both are incorrect


Correct Option: D