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

According to the Section 203 of the Companies Act, 2013 which of the following persons has been covered under term 'Whole-time KMP'?

  1. Company Secretary

  2. Chartered Accountant

  3. Civil Engineer

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

Section 203 of the Companies Act, 2013 explicitly lists the Company Secretary as a Key Managerial Personnel (KMP) for certain classes of companies.

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

According to the provisions of Companies Act, 2013 atleast what percent of the average net profits of the company shall be spend in pursuance of CSR activities?

  1. 10 percent

  2. 8 percent

  3. 3 percent

  4. 2 percent
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Section 135 of the Companies Act, 2013 requires companies meeting certain criteria to spend at least 2 percent of their average net profits made during the three immediately preceding financial years on Corporate Social Responsibility (CSR) activities.

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

Memorandum of association contains which of the following?

  1. Place of registered office of the company

  2. Objective of the company

  3. Amount of registered share capital

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

The Memorandum of Association (MOA) is the charter of the company and must contain the name, registered office, objects, liability, and capital clauses.

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

The seal of a company acts as its signature.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Common Seal is the official signature of the company and each company shall have only one seal, on its incorporation.

 Common Seal is the signature of the company to any document on which it is affixed and binds the company for all obligations undertaken in the document

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 the term 'Bonds' are treated as long term borrowings, but these shall be stated in ____________.

  1. ascending order of maturity or conversion

  2. descending order of maturity or conversion

  3. either ascending or descending order of maturity

  4. on the basis of LIFO method
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

According to the Schedule III of the Companies Act, 2013, long-term borrowings like bonds should be disclosed in the notes to accounts in descending order of maturity or conversion.

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

If any _______ is present while forming the agency then the relationship of agency becomes contractual.

  1. consideration

  2. law

  3. emotion

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

Under the Indian Contract Act, an agency relationship requires consideration to be a binding contract, although the law of agency itself has specific provisions regarding the authority of an agent.