Class 11 Business Studies MCQ Chapter 7 Formation of a Company Solutions to each chapter is provided in the list so that you can easily browse through different chapters Class 11 Business Studies MCQ Chapter 7 Formation of a Company Question Answer and select need one. NCERT Class 11 Business Studies MCQ Chapter 7 Formation of a Company Solutions Download PDF. AHSEC Class 11 Business Studies Multiple Choice Solutions.
Class 11 Business Studies MCQ Chapter 7 Formation of a Company
Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. NCERT Class 11 Business Studies Objective Type Solutions are part of All Subject Solutions. Here we have given AHSEC Class 11 Business Studies Multiple Choice Question and Answer, HS First Year Business Studies MCQ Solutions for All Chapters, You can practice these here.
Formation of a Company
Chapter: 7
| MCQ |
1. Minimum number of member to form a private company is-
(i) 2
(ii) 3
(iii) 5
(iv) 7
Ans: (i) 2
2. Minimum number of members to form a public company is-
(i) 5
(ii) 7
(iii) 12
(iv) 21
Ans: (ii) 7
3. Application for approval of name of a company is to be made to –
(i) SEBI.
(ii) Registrar of companies.
(iii) Government of India.
(iv) Government of the state in which company is to be registered.
Ans: (ii) Registrar of companies.
4. A proposed name of company is consider undesirable of –
(i) It is identical with the name of an existing company.
(ii) It resembles closely the name of an existing company.
(iii) It is an emblem of the Government of India, United Nations etc.
(iv) In case of any of the above.
Ans: (iv) In case of any of the above.
5. A prospectus is issued by-
(i) A private company.
(ii) A public company seeking investment from public.
(iii) A public enterprise.
(iv) A public company.
Ans: (iv) A public company.
6. Stages in the formation of a public company are in the following order-
(i) Promotion, commencement of business, incorporation, capital subscription.
(ii) Incorporation, capital subscription, commencement of Business, Promotion.
(iii) Promotion, Incorporation, capital subscription, commence of business.
(iv) Capital subscription, Promotion, Incorporation, commencement of business.
Ans: (i) Promotion, commencement of business, incorporation, capital subscription.
7. Preliminary contracts are signed-
(i) Before the incorporation.
(ii) After incorporation but before capital Subscription.
(iii) After incorporation but before commencement of business.
(iv) After commencement of business.
Ans: (i) Before the incorporation.
8. Preliminary contracts are:
(i) Binding on the company.
(ii) Binding on the company, if ratified after incorporation.
(iii) Binding on the company, after incorporation.
(iv) Not binding on the company.
Ans: (iv) Not binding on the company.
9. The first and foremost activity of a promoter is to identify a _________.
(i) Find threats.
(ii) Innovation.
(iii) Business opportunity.
(iv) Growth of finance.
Ans: (iii) Business opportunity.
10. As per section ________, a promoter means a person, Who has control over the affairs of the company, directly or indirectly whether as a shareholder, director or otherwise.
(i) 20
(ii) 69
(iii) 2
(iv) 5
Ans: (ii) 69
11. Only when these investigations throw up positive results, the promoters may decide to actually launch a company. Is it true or false?
(i) True.
(ii) False.
(iii) None of the above.
(iv) All of the above.
Ans: (i) True.
12. The promoter takes up steps to prepare certain legal documents, which have to be submitted under the law, to the Registrar of the Companies for getting the company registered. These documents are:
(i) Memorandum of Association.
(ii) Articles of Association.
(iii) Consent of Directors.
(iv) All of the above.
Ans: (iv) All of the above.
13. Which of the following are the functions of a promoter?
(i) Appointment of professionals.
(ii) Feasibility studies.
(iii) Name approval.
(iv) All of the above.
Ans: (iv) All of the above.
14. What does DIN stand for?
(i) Director Identification Number.
(ii) Direction Identification Number.
(iii) Document Identification Number.
(iv) Drug Identification Number.
Ans: (i) Director Identification Number.
15. A notice about the exact address of the registered office may also be submitted along with these documents. However, if the same is not submitted at the time of incorporation, it can be submitted within:
(i) 10 days after the receipt of the certificate of incorporation.
(ii) 30 days after the receipt of the certificate of incorporation.
(iii) 20 days after the receipt of the certificate of incorporation.
(iv) 3 days after the receipt of the certificate of incorporation.
Ans: (ii) 30 days after the receipt of the certificate of incorporation.
