A
Which Act governs companies operating in India?
A) Partnership Act, 1932
B) Companies Act, 2013
C) Contract Act, 1872
D) SEBI Act, 1992
B) Companies Act, 2013
A public company must have at least:
A) 2 members
B) 5 members
C) 7 members
D) 10 members
C) 7 members
A foreign company is incorporated:
A) In India only
B) Outside India and conducts business in India
C) By the Government of India
D) By Indian citizens only
B) Outside India and conducts business in India
Which of the following is a feature of an OPC?
A) Unlimited Liability
B) Public Subscription
C) Separate Legal Entity
D) Minimum 7 Members
C) Separate Legal Entity
Which of the following is an example of a Government Company?
A) Infosys
B) Tata Motors
C) ONGC
D) Microsoft Corporation
C) ONGC
According to Section 2(20) of the Companies Act, 2013, a company means:
A) Any business organization
B) Any partnership firm
C) A company incorporated under this Act or any previous company law
D) A government organization
C) A company incorporated under this Act or any previous company law
Property purchased by a company belongs to:
A) Shareholders
B) Directors
C) Company
D) Government
C) Company
Which feature states that a company is separate from its shareholders?
A) Limited Liability
B) Separate Legal Entity
C) Common Seal
D) Transferability of Shares
B) Separate Legal Entity
OPC stands for:
A) One Public Company
B) One Person Company
C) Open Partnership Company
D) Official Private Company
B) One Person Company
Which company generally has an unlimited number of shareholders?
A) OPC
B) Private Company
C) Public Company
D) Small Company
C) Public Company
A company has its own legal identity separate from:
A) Government
B) Directors only
C) Shareholders or members
D) Employees
C) Shareholders or members
Which feature ensures that a company continues despite the death of its members?
A) Separate Property
B) Perpetual Succession
C) Common Seal
D) Limited Liability
B) Perpetual Succession
The liability of shareholders is limited to:
A) Company's total debt
B) Their personal property
C) Amount unpaid on their shares
D) Company's turnover
C) Amount unpaid on their shares
Company limited by guarantee is commonly used for:
A) Stock exchanges
B) Non-profit organizations
C) Manufacturing firms
D) Banks
B) Non-profit organizations
A subsidiary company is controlled by:
A) Government
B) Public shareholders
C) Holding Company
D) Registrar of Companies
C) Holding Company
A company can sue and be sued because it is:
A) A partnership
B) A government entity
C) A legal entity
D) A trust
C) A legal entity
Which of the following is a compliance requirement under the Companies Act, 2013?
A) Maintaining books of accounts
B) Daily audit
C) Monthly AGM
D) Weekly ROC filing
A) Maintaining books of accounts
In an OPC, if the sole member dies:
A) Company closes immediately
B) Government takes over
C) Nominee takes over
D) Shares are cancelled
C) Nominee takes over
The maximum number of shareholders in a private company is:
A) 50
B) 100
C) 200
D) Unlimited
C) 200
A company limited by guarantee generally has:
A) Large share capital
B) No share capital
C) Unlimited liability
D) Foreign ownership only
B) No share capital
Shares of a public company can generally be:
A) Cancelled freely
B) Freely transferred
C) Sold only to directors
D) Transferred with court approval
B) Freely transferred
If a company cannot repay its loan, whose assets can be used to repay the debt?
A) Shareholders' personal assets
B) Directors' personal assets
C) Company's assets
D) Employees' assets
C) Company's assets
Which company can invite the public to subscribe to shares?
A) Private Company
B) OPC
C) Public Company
D) Dormant Company
C) Public Company
A government company is one in which the government holds at least:
A) 25% share capital
B) 49% share capital
C) 51% share capital
D) 75% share capital
C) 51% share capital
The paid-up capital of a Small Company should not exceed:
A) ₹2 Crores
B) ₹3 Crores
C) ₹4 Crores
D) ₹5 Crores
C) ₹4 Crores
Note: Now it's 10 Crores