Tag: company

Questions Related to 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-

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

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

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

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

  4. (2) & (4)

Show answer
Correct Option: B

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.

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

  1. $100 ; 50$

  2. $50 ; 100$

  3. $60 ; 20$

  4. $20 ; 10$

Show answer
Correct Option: A

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?

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

  1. Section 8

  2. Section 25

  3. Section 18

  4. Section 20

Show answer
Correct Option: A

Which of the following is true?

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

  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

Show answer
Correct Option: C
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.

Which of the following is not a regulatory body?

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

  1. SEBI

  2. RBI

  3. CCI

  4. SIDBI

Show answer
Correct Option: D