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

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 a person in the eyes of the law and can become a member of a company, including a Section 8 company, provided it is registered as a partnership firm.

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

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
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Section 8 of the Companies Act, 2013 deals with companies formed for charitable purposes, which are commonly referred to as Section 8 companies. This replaces the old Section 25 from the 1956 Act.

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

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
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A Section 8 company must apply its profits to the promotion of its objects and is strictly prohibited from paying dividends to its members. Therefore, statement (ii) is incorrect, making (i) and (iii) the correct conditions.

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

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%
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

According to Section 2(45) of the Companies Act, 2013, a Government company is one in which at least 51% of the paid-up share capital is held by the Central or State Government(s).

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

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
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

None of the listed items are correct characteristics of a company. Profits are not transferable in all companies (e.g., private companies), company property is not joint property of shareholders, and the common seal is now optional under the 2013 Act.

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

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
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The landmark case of Salomon vs. Salomon & Co. Ltd. established the principle of separate legal entity, confirming that a company is distinct from its members.

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

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
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In a company limited by guarantee, the liability of members is limited to the amount they have undertaken to contribute to the assets of the company in the event of its winding up.

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

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)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Preference shares carry preferential rights regarding both the payment of a fixed dividend and the repayment of capital in the event of the company being wound up.

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

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
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A company has perpetual succession, meaning it does not die with its shareholders. Furthermore, private companies have restrictions on the transfer of shares, so they are not freely transferable.