Tag: memorandum of understanding and articles of association

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

What is not false for dormant company?

  1. It is registered for future project

  2. It is registered under Companies Act, 1956

  3. It is registered as dormant company under Companies Act, 1956

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

A dormant company is one formed for a future project or to hold an asset or intellectual property and has no significant accounting transactions.

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

A hospital does some charity work although it was not obliged to do so. What will be true?

  1. It will be considered a CSR activity

  2. Hospitals are not required to do CSR activity

  3. It will not be considered a CSR activity

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

Corporate Social Responsibility (CSR) activities are voluntary contributions by companies toward social welfare. Even if not legally mandated for a specific entity, such activities are categorized under CSR.

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

Is CSR applicable to Foreign Companies?

  1. No

  2. Yes

  3. Nothing Specified

  4. It is Voluntary
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under the Companies Act, 2013, the provisions regarding Corporate Social Responsibility (CSR) are applicable to foreign companies that have a branch office or project office in India meeting certain financial criteria.

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

Where a fraudulent and dishonest use is made of the legal entity, the Court will break through the corporate shell and apply the principle of what is known as _______

  1. Shifting of the corporate personality

  2. Doctrine of privity of contract

  3. Piercing through the corporate veil

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

Piercing the corporate veil is a legal doctrine where the court ignores the separate legal personality of a company to hold its shareholders or directors personally liable for fraudulent acts.

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

Final accounts of companies are prepaid according to_________of the companies Act,2013.

  1. Schedule VI

  2. Schedule V

  3. Schedule II

  4. Schedule III
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Schedule III of the Companies Act, 2013, provides the format for the preparation of the Balance Sheet and Statement of Profit and Loss for companies.

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

Power/ duties of Auditors apply _______to Company Secretary in Practice conducting secretarial audit.

  1. Mutatis Mutandis

  2. Mutains Mutandis

  3. Mutatis Mutantis

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

The Latin phrase 'mutatis mutandis' means 'with the necessary changes having been made', which is standard legal terminology when applying rules from one context to a similar one.

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

The 'Doctrine of Indoor Management' provides protection to the ___________.

  1. Board of Directors

  2. Shareholders

  3. Managing Director

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

In simple words, the doctrine of indoor management means that a company's interior associations are the company's difficulty. As a result, this regulation of interior organization is important to people dealing with a company through its directors or other persons. 

Where the doctrine of productive notice protects a company against outsiders, the doctrine of indoor management protects outsiders against the actions of a company. This doctrine also is a feasible safeguard against the possibility of abusing the doctrine of productive notice.

Thus, the correct option is D.