Tag: companies act, 2013

Quizzes (7) Questions (112)

Questions Related to companies act, 2013

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

A partnership firm cannot become member of the company registered under Section 8 of the Companies Act, 2013.

  1. True

  2. False

  3. Partly true

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

A partnership firm is not a legal person and cannot be a member of a company. However, since a Section 8 company is a company, the general rule applies that a partnership firm cannot be a member in its own name.

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

As per Section 2(69) of the Companies Act, 2013, which of the following person can be treated as "Promoter"?
(I) Who has been named as such in a  prospectus or is identified by the company in the annual return referred to in Section 92. 
(II) Who has control over the affairs of the company, directly or indirectly whether as a shareholder, director or otherwise.
(III) In accordance with whose advice, directions or instructions the Board of Directors of the company is accustomed to act
(IV) Person who is acting in a professional capacity

  1. (I) and (II) only

  2. (II) and (III) only

  3. (II), (III) and (IV) only

  4. (I), (II), (III) of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Section 2(69) defines a promoter as a person who has been named in the prospectus, has control over the affairs of the company, or on whose advice the Board is accustomed to act. Professional capacity (IV) is explicitly excluded from the definition.

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

Rule 12 of the Companies (Incorporation) Rules, 2014 states that an application for incorporation shall be filed with ROC in _______ in case of one person company or _______ in case of other companies.

  1. Form INC-2; Form INC-5

  2. Form INC-7; Form INC-5

  3. Form INC-7; Form INC-2

  4. Form INC-2; Form INC-7
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Under the Companies (Incorporation) Rules, 2014, Form INC-2 was used for One Person Company (OPC) incorporation, while Form INC-7 was used for other companies (though these forms have since been updated/replaced in practice, this reflects the historical context of the question).

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

According to the Companies Act, 2013, which of the following is/are treated as 'non-current investment'?

  1. Investment in Mutual Funds

  2. Investment in Govt. Securities

  3. Investment in Bonds

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

Non-current investments are those held for a period exceeding 12 months. Mutual funds, government securities, and bonds can all be classified as non-current investments depending on the company's intent and holding period.

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

Which of the following is not an object of the Companies Act, 2013?

  1. To encourage transparency

  2. To encourage profitability

  3. To encourage accountability

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

The Companies Act, 2013 aims to promote transparency, accountability, and good governance. While profitability is a goal of the business itself, it is not an explicit legislative object of the Act.

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

Consider the following statements :
1. Under the new Company Act, 2013, a director is treated as related party.
2.  Under the new Company Act, 2013, an 'Official Liquidator' should be appointed under subsection (1) of Section 359.
3. Life Insurance Corporation cannot be treated as a 'Public Financial Institution'.
Which of the above statement/s is/are not correct

  1. Only 3

  2. Only 2

  3. 1 and 3

  4. 1 and 2
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

LIC is one of the financial institutions to be established in India after independence. The full form of LIC is life insurance corporation and it was established in 1956. The main aim behind the establishment was to spread the message of life insurance in the country. Also, it was required to mobilize people's savings.

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

Which of the following statements is correct?

  1. The 'Corporate Governance' is about ethical conduct only.

  2. The 'Corporate Governance' is beyond the realm of law.

  3. The 'Corporate Governance' stems from the culture and mind set of management and cannot be regulated by legislation alone.

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

Corporate governance is widely recognized as a culture and mindset that goes beyond mere legal compliance. Legislation provides a framework, but effective governance requires ethical leadership.

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

Which of the following is a correct statement?

  1. Goods and Service Tax (GST) is a consolidation of many indirect taxes already levied in India

  2. In India, Excise duty and Service tax are levied by the Central Government

  3. VAT is levied by the State Governments

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

GST consolidated various indirect taxes, the Central Government levies excise and service tax (pre-GST context), and VAT was historically a state-level tax. All these statements are accurate descriptions of the Indian tax landscape.

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

Consider the following statements :
1.Neither the Companies Act, 1956 not the Companies Act, 2013 defines the term 'Person' i.e. the one member of OPC
2. The one member of OPC can be either a natural person or a Juridical person.
3. An OPC cannot be converted into any other class of company.
Which of the above statement/s is/are not true?

  1. 1 and 2

  2. 2 and 3

  3. Only 2

  4. Only 3
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The conversion of a private limited into an OPC (One Person Company) is allowed as per the Companies Act, 2013, which provides a mechanism to convert one class of company into another.That the annual turnover of the company must be less than Rs. 2 crores during the past three consecutive financial years.

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

Which of the following is considered as a 'tangible asset'?

  1. Vehicles

  2. Computer Software

  3. Mining Rights

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

Tangible assets are physical assets that have a material existence. Vehicles are physical items, whereas software, mining rights, and goodwill are intangible assets.