{"id":17849,"date":"2022-05-27T17:30:57","date_gmt":"2022-05-27T12:00:57","guid":{"rendered":"https:\/\/mcq-questions.com\/?p=17849"},"modified":"2022-05-18T15:56:25","modified_gmt":"2022-05-18T10:26:25","slug":"mcq-questions-for-class-11-business-studies-chapter-7","status":"publish","type":"post","link":"https:\/\/mcq-questions.com\/mcq-questions-for-class-11-business-studies-chapter-7\/","title":{"rendered":"MCQ Questions for Class 11 Business Studies Chapter 7 Formation of a Company with Answers"},"content":{"rendered":"

Students who are searching for NCERT MCQ Questions for Class 11 Business Studies Chapter 7 Formation of a Company with Answers Pdf free download are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 11 Business Studies with Answers<\/a>. You can also verify your answers from our provided Formation of a Company Class 11 MCQs Questions with Answers. So, ace up your preparation with MCQ on Formation of a Company Class 11 Objective Questions.<\/p>\n

Formation of a Company Class 11 MCQs Questions with Answers<\/h2>\n

Question 1.
\nThe dividend payable to ___________ shareholders is payable on fixed figure or percent
\n(a) Equity
\n(b) Non-preference
\n(c) Preference
\n(d) All of the above<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Preference<\/p>\n<\/details>\n

\n

Question 2.
\nA company is known as the _______company of another company if it has control over that other company.
\n(a) Subsidiary
\n(b) Holding
\n(c) Controlling
\n(d) Statutory<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Holding<\/p>\n<\/details>\n

\n

Question 3.
\nA private company means a company which has a minimum paid up capital of Rs.______
\n(a) 1,00,000
\n(b) 5,00,000
\n(c) 50,00,000
\n(d) None of the above<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) 1,00,000<\/p>\n<\/details>\n

\n

Question 4.
\nThe Prospectus must be issued to the public within ______________ days of its date.
\n(a) 30
\n(b) 60
\n(c) 90
\n(d) 100<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) 90<\/p>\n<\/details>\n

\n

Question 5.
\n__________ means the total amount of called up capital on the shares issued and subscribed by the shareholders on the capital account.
\n(a) Called-up capital
\n(b) subscribed capital
\n(c) nominal capital
\n(d) Paid-up capital<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Called-up capital<\/p>\n<\/details>\n

\n

Question 6.
\nPar value of shares means the __________ value of the shares
\n(a) Actual
\n(b) face
\n(c) Market
\n(d) dividend<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) face<\/p>\n<\/details>\n

\n

Question 7.
\nAmong the following which documents are not mandatory to be submitted to the registrar along with an incorporation application by a private company.
\n(a) Address of Registered office & undertaking
\n(b) Undertaking and statement of capital
\n(c) Statement of capital & list of directors
\n(d) List of directors and statement of capital<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Address of Registered office & undertaking<\/p>\n<\/details>\n

\n

Question 8.
\nThe articles of association need to be signed by
\n(a) All proposed directors
\n(b) Registrar
\n(c) Subscribers of memorandum
\n(d) None of the above<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) subscribers of the memorandum<\/p>\n<\/details>\n

\n

Question 9.
\n“Men may come and men may go but the company exists”- this explains which characteristics of the company as per companies Act 1956.
\n(a) Separate legal entity
\n(b) Perpetual Succession
\n(c) Capacity to sue
\n(d) None of the above<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Perpetual Succession<\/p>\n<\/details>\n

\n

Question 10.
\n___________ cannot give an invitation to the public to subscribe for any shares in or debentures of the company
\n(a) Subsidiary company
\n(b) Statutory Company
\n(c) Private company
\n(d) Registered company<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Private company<\/p>\n<\/details>\n

\n

Question 11.
\nA proposed name of a Company is considered undesirable if
\n(a) It is identical to the name of an existing company
\n(b) It resembles closely the name of an existing company
\n(c) It is an emblem of the Government of India, the United Nations, etc.
\n(d) In case of any of the above<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) In case of any of the above<\/p>\n<\/details>\n

\n

Question 12.
\nApplication for approval of name of a company is to be made to
\n(a) SEBI
\n(b) Registrar of Companies
\n(c) Government of India
\n(d) Government of the State in which Company is to be registered<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Registrar of Companies<\/p>\n<\/details>\n

\n

Question 13.
\nThe application for registration of a company should be presented to the _______________ of the state appointed under Companies Act 1956
\n(a) Controller
\n(b) Registrar
\n(c) Governor
\n(d) Registration officer<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Registrar<\/p>\n<\/details>\n

\n

Question 14.
\nPowers, rights, remuneration, qualification, and duties of directors are discussed clearly in
\n(a) Memorandum of Association
\n(b) Articles of Association
\n(c) Prospectus
\n(d) None of the above<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Articles of Association<\/p>\n<\/details>\n

\n

Question 15.
\nPrivate company prohibits any invitation or acceptance of deposits from persons other than its ___________
\n(a) Members
\n(b) directors
\n(c) Partners
\n(d) Banks<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Members<\/p>\n<\/details>\n

\n

Question 16.
\nSection 12 of Companies Act 1956, deals with
\n(a) Incorporation
\n(b) Share capital
\n(c) Number of Directors
\n(d) Shareholders<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Incorporation<\/p>\n<\/details>\n

\n

Question 17.
\nThe shares of a _______________ company can be freely transferable
\n(a) Private ltd
\n(b) Public ltd
\n(c) Partnership
\n(d) All of the above<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Public ltd<\/p>\n<\/details>\n

\n

Question 18.
\nWhich of the following is not a clause of memorandum of association
\n(a) situation
\n(b) capital
\n(c) subscription
\n(d) directors<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) directors<\/p>\n<\/details>\n

\n

Question 19.
\nA private company means a company which has a minimum paid up capital of Rs._________
\n(a) 1,00,000
\n(b) 5,00,000
\n(c) 50,00,000
\n(d) None of the above<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) 5,00,000<\/p>\n<\/details>\n

\n

Question 20.
\nThe certificate of capital will be issued by
\n(a) Registrar of Companies Act
\n(b) Controller of companies Act
\n(c) Registrar of capital issues
\n(d) Controller of capital issues<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) Controller of capital issues<\/p>\n<\/details>\n

\n

Question 21.
\nWhich of the following clause of the Memorandum of Association cannot be altered?
\n(a) Name
\n(b) Object
\n(c) Situation
\n(d) Liability<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) Liability<\/p>\n<\/details>\n

\n

Question 22.
\nThe company will be considered as a separate person and different from its members from the date of __________
\n(a) Start of business
\n(b) Apply for registration
\n(c) Receive incorporation certificate
\n(d) Mentioned in the certificate<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) Mentioned in the certificate<\/p>\n<\/details>\n

\n

Question 23.
\nA prospectus is issued by
\n(a) A private company
\n(b) A public company seeking investment from public
\n(c) A public enterprise
\n(d) A public company<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) A public company seeking investment from public<\/p>\n<\/details>\n

\n

Use the above-provided NCERT MCQ Questions for Class 11 Business Studies Chapter 7 Formation of a Company with Answers Pdf free download and get a good grip on the fundamentals. Need any support from our end during the preparation of CBSE Class 11 Business Studies Formation of a Company MCQs Multiple Choice Questions with Answers then leave your comments below. We’ll revert back to you soon.<\/p>\n","protected":false},"excerpt":{"rendered":"

Students who are searching for NCERT MCQ Questions for Class 11 Business Studies Chapter 7 Formation of a Company with Answers Pdf free download are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 11 Business Studies with Answers. You can also verify your answers from …<\/p>\n

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