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

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