Tag: companies act, 2013 - introduction and characteristics

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Questions Related to companies act, 2013 - introduction and characteristics

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

Which of the following is characteristic of a company?
(1) Limited Profit
(2) Corporate Personality
(3) Limited Succession
Select the correct answer from the options given below:

  1. (1) only

  2. (2) and (3) only

  3. (3) only

  4. (2) only
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A company has a separate corporate personality, which is a legal characteristic. It does not have limited profit (profit is unlimited) and it has perpetual succession, not limited succession.

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

Characteristic of a company ________ .

  1. Capacity to sue and be sued

  2. Limited liability

  3. Optional common seal

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

A company is a separate legal entity with the capacity to sue and be sued, limited liability for members, and traditionally used a common seal (now optional).

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

Choose the correct answers from the following alternatives given
Which amounts to fraud:

  1. false representation as to fact

  2. a mere opinion

  3. a statement of expression

  4. a statement of intention
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Fraud involves a false representation of fact made with the intent to deceive, whereas opinions or intentions do not generally constitute fraud in a legal sense.

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

Perpetual succession means -

  1. Members may go and members may go but the company goes on forever

  2. Members may come and members may come but the company goes on forever

  3. Members may come and members may go but the company goes on forever

  4. Members may come and members may go but the company cannot go on forever
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Perpetual succession means that the existence of the company is independent of its members; they may come and go, but the company remains.

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?

  1. Restriction on transfer of shares

  2. Unlimited liabilty

  3. Capacity not to sue

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

Incorporation creates a separate legal entity, which allows the company to own property in its own name, distinct from its members.

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

Private company which is a subsidiary of a public company is treated as ________.

  1. Public Company

  2. Private Company

  3. Statutory Company

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

Under the Companies Act, 2013, a private company that is a subsidiary of a public company is deemed to be a public company.

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

As per _____ of the Companies Act, 2013 "company" means a company incorporated under Companies Act, 2013 or under any previous company law.

  1. Section 2(3)

  2. Section 2(20)

  3. Section 2(12)

  4. Section 2)25)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Section 2(20) of the Companies Act, 2013 defines company to mean a company incorporated under the Companies Act, 2013 or under any previous company law. This broad definition ensures continuity for existing companies while accommodating new incorporations.

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.