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

Which of the following person is NOT eligible to incorporate One Person Company (OPC) as per Companies Act, 2013?
(1) Indian citizen and resident in India
(2) Person who has already incorporated one OPC in India
(3) Artificial person
(4) Indian citizen and non-resident in India
Select the correct the answer from the options given below-

  1. (1), (3) & (4)

  2. (2), (3) & (4)

  3. (1), (2) & (4)

  4. (2) & (4)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

As per the Companies Act, 2013, only a natural person who is an Indian citizen and resident in India can incorporate an OPC. Artificial persons, non-residents, and persons who already hold an OPC are ineligible.

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

As per Section 464 of the Companies Act, $2013$, no association or partnership consisting of more than prescribed persons shall be formed for the purpose of carrying on any business, unless it is registered as a company or is formed under any other law for the time being in force. The number of persons which may be prescribed under this section shall not exceed __. Rule 10 of Companies (Miscellaneous) Rules, 2014 prescribes ___ persons in this regard.

  1. $100 ; 50$

  2. $50 ; 100$

  3. $60 ; 20$

  4. $20 ; 10$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Section 464 of the Companies Act, 2013 limits the number of persons in an association or partnership to 100, as prescribed by Rule 10 of the Companies (Miscellaneous) Rules, 2014.

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

Which of the following sections 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 for the formation of companies with charitable objects, which can be licensed to omit the words 'Limited' or 'Private Limited' from their names.

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

Which of the following is true?

  1. The cost of retained earnings is always less than the cost of external equity

  2. The cost of external equity is always less than the cost of retained earnings

  3. The cost of retained earnings is lower than the cost of external equity in the presence of flotation costs

  4. In the presence of flotation costs the cost of external equity is less than the retained earnings

  5. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Cost of external equity K'ee =required rate of return
f = cost of issue
Hence, in presence of floatation costs, the cost of retained earnings is less than the cost of external equity.