MCQs For NCERT Class 11 Business Studies Chapter 7 Formation of a Company

MCQs Class 11

Please refer to the MCQ Questions for Class 11 Business Studies Chapter 7 Formation of a Company with Answers. The following Formation of a Company Class 11 Business Studies MCQ Questions have been designed based on the latest syllabus and examination pattern for Class 11. Our experts have designed MCQ Questions for Class 11 Business Studies with Answers for all chapters in your NCERT Class 11 Business Studies book.

Formation of a Company Class 11 MCQ Questions with Answers

See below Formation of a Company Class 11 Business Studies MCQ Questions, solve the questions and compare your answers with the solutions provided below.

Question. A copy of the ________________ must accompany each from of application for shares offered to the public.
(a) Memorandum of association
(b) Prospectus
(c) Articles of association
(d) None of the above  

Answer

B

Question. _______________ capital means the sum mentioned in the capital clause of Memorandum of Association
(a) Full capital
(b) Maximum capital
(c) share capital
(d) Nominal Capital  

Answer

D

Question. The applicant for the availability of name of the proposed company can have option to give maximum –
(a) 3 Alternative names
(b) 4 Alternative names
(c) 5 Alternative names
(d) 6 Alternative names  

Answer

D

Question. A proposed name of Company is considered undesirable if
(a) It is identical with the name of an existing company
(b) It resembles closely with the name of an existing company
(c) It is an emblem of Government of India, United Nations etc.
(d) In case of any of the above

Answer

D

Question. The company needs to obtain prior permision from central government when it changes the address of its registered office from
(a) one city to another city
(b) with in the same city
(c) one state to another
(d) one country to another country  

Answer

C

Question. share capital has priority both in repayment of dividend as well as capital.
(a) Equity
(b) non preference
(c) Preference
(d) all of the above

Answer

C

Question. Section 12 of Companies Act 1956, deals with
(a) Incorporation
(b) Share capital
(c) Number of Directors
(d) Shareholders

Answer

A

Question. A prospectus is issued by
(a) A private company
(b) A public company seeking investment from public
(c) A public enterprise
(d) A public company

Answer

B

Question. Which of the following clause of Memorandum of Association cannot be altered
(a) Name
(b) Object
(c) situation
(d) liability

Answer

D

Question. A company in which 50.25% of shares are held by one State Government while the rest of the shares are held by private sector companies and by retail shareholders i. e., members of public, is a
(a) Government company
(b) Public company
(c) Corporation
(d) Private sector company

Answer

B

Question. The application for registration of a company should be presented to the _______ of the state appointed under Companies Act 1956
(a) Controller
(b) Registrar
(c) Governor
(d) Registration officer

Answer

B

Question. The articles of association need to be signed by
(a) All proposed directors
(b) Registrar
(c) Subscribers of memorandum
(d) None of the above

Answer

C

Question. Which of the following is not a clause of memorandum of association
(a) situation
(b) capital
(c) subscription
(d) directors

Answer

D

Question. Where title in shares of a company is in dispute, the matter has to be resolved by
(a) Court
(b) Arbitrator
(c) Company Law Board
(d) Central Government

Answer

A

Question. Which of the following forms of business organisation has limited liability to his members:
(a) Partnership
(b) Company
(c) Sole proprietorship
(d) Joint Hindu Family business

Answer

B

Question. The company will be considered as a separate person and different from its members from the date of _____
(a) Start of business
(b) Apply for registration
(c) Receive incorporation certificate
(d) Mentioned in the certificate

Answer

D

Question. A private company means a company which has a minimum paid up capital of Rs.————-
(a) 1,00,000
(b) 5,00,000
(c) 50,00,000
(d) None of the above

Answer

A

Question. Amit is performing a business activity in which he enjoys all the profits and bears all the risk alone, which type of organisation do you think Amit is running:
(a) Partnership
(b) Company
(c) Sole proprietorship
(d) Joint stock company

Answer

C

Question. ___________ cannot give an invitation to the public to subscribe for any shares in or debentures of the company
(a) Subsidiary company
(b) Statutory Company
(c) Private company
(d) Registered company

Answer

C

Formation of a Company Class 11 MCQ Questions with Answers