CBSE Class 11 Business Studies Formation of a Company MCQs Set 03

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

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

Answer: A

Question. A company is known as the _______company of another company if it has control over that other company.
(a) Subsidiary
(b) Holding
(c) Controlling
(d) Statutory

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 options

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. 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. The Prospectus must be issued to the public within ______________ days of its date.
(a) 30
(b) 60
(c) 90
(d) 100

Answer: C

Question. Application for approval of name of a company is to be made to
(a) SEBI
(b) Registrar of Companies
(c) Government of India
(d) Government of the State in which Company is to be registered

Answer: B

Question. The certificate of capital will be issued by
(a) Registrar of Companies Act
(b) Controller of companies Act
(c) Registrar of capital issues
(d) Controller of capital issues

Answer: D

Question. Par value of shares means the __________ value of the shares
(a) Actual
(b) face
(c) Market
(d) dividend

Answer: B

Question. Powers, rights, remuneration, qualification, and duties of directors are discussed clearly in
(a) Memorandum of Association
(b) Articles of Association
(c) Prospectus
(d) None of the options

Answer: B

Question. What do you mean by Technical feasibility?
Answer : Technical feasibility means analyzing an idea which may be great but technically impossible to execute. It could be because of the desired raw material or technology is not easily available.

Question. In a company, who is known to be the first directors of the company?
Answer : In a company, the promoter decides who will sign the memorandum of association of the proposed company. Whoever signs the memorandum, they will also be the first directors of the company.

Question. What do you mean by Economic feasibility?
Answer : A plan or a project can be technically and financially feasible but the outcome of it being profitable is very limited.

Question. What do you mean by the promoter?
Answer : In common, a promoter is a person who has control over the operation of a company directly, indirectly or as a shareholder. According to his advice, the director or the board members of the company takes the decision.

Question. How many members should sign a memorandum of association in a public company?
Answer : A minimum of seven members should sign a memorandum of association in a public company.

Question. State the three stages in the formation of a company.
Answer : The three stages in the formation of a company are.
- Promotion
- Incorporation
- Subscription of a company