MCQ for CA Foundation LAW - PART 1 - BUSINESS LAW - Chapter 5 THE COMPANIES ACT, 2013

Sample Multiple Choice Questions (MCQ's) for CA Foundation - Paper 2 - Business Laws and Business Correspondence and Reporting - PART 1 - BUSINESS LAW - Chapter 5: THE COMPANIES ACT, 2013 - For Practice relevant for Dec 22 and May/June 23 Examinations

Q:1 Maximum number of members under a private company as provided under the Companies Act, 2013.

  1. 50
  2. 150
  3. 200
  4. No limit

Answer: 3

Q:2  Under the Companies Act, 2013, “Significant influence” constitutes how much % of total share capital or of business decisions under an agreement?

  1. At least 2%
  2. At least 2.5%
  3. At least 10%
  4. At least 20%

Answer: 4

Q:3  A Private Company which is subsidiary of a Public Company is treated as-

  1. Public Company
  2. Private Company
  3. Holding Company
  4. Dormant Company

Answer: 1

Q:4 Which one of the following is not the content of the Memorandum of Association?

  1. Name clause
  2. Registered office clause
  3. Objects clause
  4. Board of Directors clause.

Answer: 4

Q:5 Turquand Rule is related to:

  1. Doctrine of ultra vires
  2. Doctrine of constructive notice
  3. Doctrine of indoor management
  4. Doctrine of subrogation

Answer: 3

Q:6 The minimum number of members in a private company and public company are

  1. Three and Seven respectively
  2. Two and seven respectively
  3. Two and nine respectively
  4. None of the above

Answer: 2

Q:7 Only a natural person who is an Indian citizen and who has stayed in India for a period of at least _____ days during the immediately preceding financial year shall be eligible to incorporate an OPC.

  1. 180 days
  2. 181 days
  3. 120 days
  4. 183 days

Answer: 3

Q:8 XYZ Limited is having 15% share capital held by X Limited and 50% held by Central Government and 10% held by State Government and 25% held by other people then that company will be _________ .

  1. Government Company
  2. Private Company
  3. Public Company
  4. Dormant company 

Answer: 1

Q:9 The Doctrine of indoor management is a protection that is available to:

  1. Shareholders
  2. Outsiders who deal with the company
  3. Board of Directors
  4. Creditors

Answer: 2

Q:10 The doctrine which advocates the fact that company cannot act beyond the scope of its memorandum of association is:

  1. Doctrine of constructive notice
  2. Doctrine of indoor management
  3. Doctrine of ultra vires
  4. Doctrine of intra vires

Answer: 3

 To get back to the Chapterwise MCQ list Page   


Hope you can find this article helpful. If you did like the content then Share it with your friends who are preparing for CA Foundation Exams or who will be giving their CA Foundation Exams in the near future.

In order to buy MCQ Test Series (Having more than 1000 Questions) for CA Foundation Examinations. Please visit Link -