Tag: company

Quizzes (10) Questions (165)

Questions Related to company

Multiple choice memorandum of understanding and articles of association company business studies

In a company who conceives the idea of the business?

  1. Promoters

  2. Auditors

  3. Directors

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

Promoters are the individuals or groups who conceive the idea of forming a company and take the necessary steps to bring it into existence. Directors and shareholders are involved after the company is formed, while auditors are appointed to verify financial records.

Multiple choice memorandum of understanding and articles of association company business studies

Preferential shareholders can call meeting in which situation?

  1. Curfew

  2. Emergency

  3. Bomb blast

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
As per section 48 of Companies Act, 2013 class meetings are held by preferential shareholders. Class meeting are basically held for taking consent of a particular class of shareholders. Through this meeting, the rights and privileges of the shareholders can be altered, or conversion of one class to another can be done.

Multiple choice memorandum of understanding and articles of association company business studies

As per section 2(41) of the Companies Act, 2013 financial year of the Company is ________.

  1. from April to March

  2. from January to December

  3. to be decided on individual basis

  4. based on the incorporation date of Company
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Section 2(41) of the Companies Act, 2013, mandates that the financial year for every company incorporated in India shall be the period ending on the 31st day of March every year.

Multiple choice memorandum of understanding and articles of association company business studies

The corporate veil can be lifted___.

  1. For determining the true status of the company

  2. In order to determine whether it was an enemy company

  3. Where the company fails to pay taxes and duties

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

The doctrine of lifting the corporate veil allows courts to look behind the company as a separate legal entity in various situations, including determining if it is an enemy company, investigating tax evasion, or identifying the true status of the company.

Multiple choice memorandum of understanding and articles of association company business studies

If company does not follow the principle of separate legal entity, _______ can be done.

  1. Principle of natural justice

  2. Principle of equity

  3. Lifting of corporate veil

  4. Principle of unjust enrichment
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The principle of separate legal entity treats a company as distinct from its members. When this principle is misused to commit fraud or evade obligations, the court disregards the entity and lifts the corporate veil to hold the individuals behind it liable.

Multiple choice memorandum of understanding and articles of association company business studies

The corporate veil can be lifted__.

  1. Where the corporate veil has been used for proper & legal purpose

  2. Where the corporation is really an agency or trust for someone else and the corporate facade is used to cover up that agency or trust

  3. Where the company is incurring continuous losses

  4. When company restricts the right to transfer its shares
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Courts may lift the corporate veil when the company is used as a mere facade, agency, or trust to cover up the activities of the persons behind it, preventing the misuse of the corporate form.

Multiple choice memorandum of understanding and articles of association company business studies

The net worth of a company is rupees five hundred crore in the year 2012-13. In the financial year 2014-15 its net worth is less than five hundred crore. As per Companies Act, 2013 it will need to constitute CSR Committee and comply with provisions of 135(2) to (5) in the year ________.

  1. 2014-15

  2. 2015-16

  3. 2013-14

  4. 2016-17
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under Section 135 of the Companies Act, 2013, CSR provisions apply if a company meets the net worth criteria during any of the three preceding financial years. If the net worth was 500 crore in 2012-13, the company is required to comply in the subsequent years.

Multiple choice memorandum of understanding and articles of association company business studies

The corporate veil can be lifted____.

  1. Where it was found that the sole purpose for which the company was formed was to evade taxes

  2. Where the purpose of company formation was to evade labour welfare & other legislation

  3. To punish for contempt of court

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

Courts lift the corporate veil in various instances, including tax evasion, avoidance of welfare legislation, and to prevent the abuse of the corporate structure for illegal purposes.