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

PRINCIPLE: An incorporated company under the Companies Act has a separate entity and corporate liability.
FACTS: Certain persons transferred a tea estate to an incorporated company and claimed exemptions from 'ad valorem' duty on the ground that they themselves were shareholders in the company.

  1. The shareholders are liable to pay as the company is a separate legal person

  2. The shareholders are not liable to pay as it is a transfer from them in one name to themselves under another name

  3. The shareholders are liable because everybody has a duty to pay on a transfer or conveyance

  4. The shareholders will not pay, the company would pay on their behalf
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Because the company is a separate legal entity, the transfer of property from shareholders to the company is a transfer between two distinct legal persons, making the transaction subject to duty.

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

_____ is an artificial person created by law, having separate entity, with perpetual succession and a common seal.

  1. Partnership firm

  2. HUF

  3. Company

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

A company is defined as an artificial person created by law, having a separate entity, perpetual succession, and a common seal.

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

License under Section 8 of Companies Act, 2013 may be granted by Central Government if _______
(i) It is limited 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 answer from the options given below -

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

  2. (ii) of the above

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

  4. (i) and (iii) of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Similar to question 494150, a Section 8 company must apply its profits to its objects and cannot pay dividends. Thus, (i) and (iii) are the correct conditions for granting a license.

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

"Body Corporate" or "Corporation" includes a company incorporated outside India but does not include __________

  1. Companies registered under earlier company law before Companies Act, 2013 came into force

  2. A co-operative society registered under any law relating to co-operative societies; and

  3. Any other body corporate which the Central Government may notify

  4. (B) or (C)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under the Companies Act, 2013, the definition of 'Body Corporate' excludes co-operative societies registered under any law relating to co-operative societies and any other body corporate which the Central Government may notify.

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

As established in Section 2(45), a Government company requires at least 51% of the paid-up share capital to be held by the government.

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

The auditor of Government Company is appointed or reappointed by the -

  1. Controller and Auditor General of India

  2. Comptroller and Auditor General of India

  3. Comptroller and General Auditor General of India

  4. Central and Auditor General of India
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The auditor of a Government company is appointed or reappointed by the Comptroller and Auditor General of India (CAG).

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

Statement X: As a corporate person, the company is not entitled to own and hold property in its own name.
Statement Y: Member can claim ownership of any time of the company's assets.
Select the correct the answer from the options given below:

  1. Statement X is correct and Statement Y is correct explanation of Statement X

  2. Statement X is correct but Statement Y is not correct explanation of Statement X

  3. Statement X and Statement Y both are correct

  4. Statement X and Statement Y both are incorrect
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A company is a legal person capable of owning property in its own name, and members have no proprietary interest in the company's assets. Therefore, both statements are incorrect.

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

Which of the following as section permits the registration, under a licence granted by the Central Government, of associations not for profit with limited liability without being required to use the word "Limited" or the words "Private Limited" after their names?

  1. Section 8

  2. Section 25

  3. Section 18

  4. Section 20
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Section 8 of the Companies Act, 2013 allows associations not for profit to be registered without using the words 'Limited' or 'Private Limited' in their names.

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

As per section 2(51) of the Companies Act, 2013, "Key Managerial Personnel", in relation to a company, means -
(i) Chief Executive Officer or the managing director or the manager
(ii) Company Secretary
(iii) General Manager
(iv) Whole Time Director
(v) Chief Legal Officer
(vi) Chief Financial Officer
Select the correct the answer from the options given below:-

  1. (i), (ii), (iv) and (vi)

  2. (i), (iii), (iv), (v) and (vi)

  3. (i), (ii), (v) and (vi)

  4. (i), (iv), (v) and (vi)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
  • Key managerial personnel are the employees of a company who hold key positions in the company and greater responsibility of overall functioning of the company including the duty to protect the interest of all stakeholders.
  • Under Section 2 (51) of the Companies Act, 2013 inclusively defines key managerial personnel as:
(i) the Chief Executive Officer or the managing director or the manager;
(ii) the company secretary;
(iii) the whole-time director;
(iv) the Chief Financial Officer; and
(v) such other officer as may be prescribed.
Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Which of the following is advantage incorporation of company?
(A) Capacity to sue
(B) Greater social responsibility
(C) Corporate personality
(D) Detailed winding-up procedure
Select the correct answer from the options given below:

  1. B and D only

  2. A, B and C

  3. C and B only

  4. C and A only
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The advantages of incorporation include corporate personality and the capacity to sue in its own name. 'Greater social responsibility' is not a standard legal advantage of incorporation, and a 'detailed winding-up procedure' is generally considered a disadvantage.