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 is advantage of incorporation of company?
(I) Limited Personality
(II) Limited Liability
(III) Limited Succession
Select the correct answer from the options given below:

  1. (I) but not (II) and (III)

  2. (II) but not (I) and (III)

  3. (III) but not (I) and (II)

  4. (II) but not (III) and (I)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Limited liability is a key advantage of incorporation. Limited personality and limited succession are not correct terms; the company has a separate legal personality and perpetual succession.

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

________ has homogeneous members.

  1. Partnership Firm

  2. Company

  3. Cooperatives

  4. Hindu Undivided Family
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A Hindu Undivided Family (HUF) consists of members who are related by blood, making them homogeneous in nature compared to the diverse membership of a company or partnership.

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

A company is legally required to have its accounts audited annually by a _______.

  1. Accountant in Practice

  2. <font color="#6d6d6d" face="Alegreya"><span>Chartered accountant</span></font>

  3. Chartered Financial Analyst

  4. Chartered Secretary in Practice
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Companies Act requires that the annual audit of a company's accounts be conducted by a Chartered Accountant.

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

A society registered under the Societies Registration Act come within the term 'Body Corporate'

  1. True

  2. False

  3. Partly True

  4. Partly false
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A society registered under the Societies Registration Act is generally not considered a 'body corporate' in the same sense as a company incorporated under the Companies Act.

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

A company consists of _______ members, whereas a Hindu Undivided Family business consists of _______ members since it consists of members of the joint family itself.

  1. Homogeneous, homogeneous

  2. Heterogeneous, homogeneous

  3. Homogeneous, Heterogeneous

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A company is generally formed by diverse individuals (heterogeneous), whereas a Hindu Undivided Family (HUF) is composed of family members sharing a common lineage (homogeneous). This distinction highlights the difference between a voluntary association of persons and a family-based business structure.

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

"Company Secretary" or "Secretary" means a company secretary as defined in ____of the Company Secretaries Act, 1980 who is appointed by a company to perform the functions of a Company Secretary under the Act.  

  1. Section 2 (1) (c)

  2. Section 2 (1) (a)

  3. Section 2 (1) (d)

  4. Section 2 (1) (e)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Section 2(1)(c) of the Company Secretaries Act, 1980 defines the term 'Company Secretary' as a person who is a member of the Institute of Company Secretaries of India (ICSI) and is appointed by a company to perform the functions of a company secretary.

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

A company may be _______________.

  1. Limited by shares

  2. Liimited by guarantee

  3. (A) or (B)

  4. (A) but not (B)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under the Companies Act, 2013, a company limited by liability can be either limited by shares or limited by guarantee. Both are valid forms of incorporation.

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

A Company Secretary in practice is eligible to become a _____ of National Company Law Tribunal.

  1. Technical Member

  2. Judicial Member

  3. Ordinary Member

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

Section 409 of the Companies Act. 2013 talks about the appointment of the members of the National Company Law Tribunal. As per clause (3) of the section the qualifications of being the technical member of the tribunal includes a person  who—

  • has, for at least fifteen years been a member of the Indian Corporate Law Service or Indian Legal Service out of which at least three years shall be in the pay scale of Joint Secretary to the Government of India or equivalent or above in that service; or
  • is, or has been, in practice as a chartered accountant for at least fifteen years; or
  • is, or has been, in practice as a cost accountant for at least fifteen years; or 
  • is, or has been, in practice as a company secretary for at least fifteen years; or
  • is a person of proven ability, integrity and standing having special knowledge and experience, of not less than fifteen years, in law, industrial finance, industrial management or administration, industrial reconstruction, investment, accountancy, labour matters, or such other disciplines related to
  • management, conduct of affairs, revival, rehabilitation and winding up of companies; or
  • is, or has been, for at least five years, a presiding officer of a Labour Court, Tribunal or National Tribunal constituted under the Industrial Disputes Act, 1947.