CBSE  /  Class 11  /  Business Studies  /  Formation of a Company

  • 1. 
    Preliminary Contracts are

  • binding on the Company
  • binding on the Company, if ratified after incorporation
  • binding on the Company, after incorporation
  • not binding on the Company

  • 2. 
    Stages in the formation of a public company are in the following order

  • Promotion, Commencement of Business, Incorporation, Capital Subscription
  • Incorporation, Capital Subscription. Commencement of Business, Promotion
  • Promotion, Incorporation, Capital Subscription, Commencement of Business
  • Capital Subscription, Promotion, Incorporation, Commencement of Business

  • 3. 
    A proposed name of Company is considered undesirable if

  • It is identical with the name of an existing company
  • It resembles closely with the name of an existing company
  • It is an emblem of Government of India, United Nations etc.
  • In case of any of the above

  • 4. 
    Minimum number of members to form a public company is

  • 5
  • 7
  • 12
  • 21

  • 5. 
    The company needs to obtain prior permision from central government when it changes the address of its registered office from

  • one city to another city
  • with in the same city
  • one state to another
  • one country to another country

  • 6. 
    A person cannot hold directorship in more than ____ public companies

  • 3
  • 10
  • 20
  • 7

  • 7. 
    Powers, rights, remuneration, qualification and duties of directors are discussed clearly in

  • Memorandum of Association
  • Articles of Association
  • Prospectus
  • none of the above

  • 8. 
    __________ means the total amount of called up capital on the shares issued and subscribed by the shareholders on capital account.

  • Called-up capital
  • subscribed capital
  • nominal capital
  • Paid-up capital

  • 9. 
    _____________ share capital has priority both in repayment of dividend as well as capital.

  • Equity
  • non preference
  • Preference
  • all of the above

  • 10. 
    Par value of shares means the __________ value of the shares

  • Actual
  • face
  • Market
  • dividend
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