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Indian Companies Act Law Best 78 GK MCQ SET:-1

Q31. Which one of the following is primary source of equity ?

(A) Custom
(B) Written law
(C) Judicial decision
(D) Conscience

Answer: Conscience

Q32. Which section of the Companies Act, 2013 deals with corporate social responsibility ?

(A) Section 133
(B) Section 134
(C) Section 135
(D) Section 136

Answer: Section 135

Q33. Articles of a company can be altered by

(A) The directors of the company
(B) The official of the company
(C) Share holders by passing an ordinary resolution
(D) Share holders by passing a special resolution

Answer: Share holders by passing a special resolution

Q34. Directors of a company are

(A) Debtors of company
(B) Trustees of company
(C) Landlords of company
(D) Tenants of company

Answer: Trustees of company

Q35. In which of the following cases, the Court cannot order rectification of instrument-

(A) Where the instrument through fraud does not express their real intention
(B) Where the instrument through mutual mistake does not express their real intention
(C) Where the instrument is the articles of association of a company
(D) Where the rectification of the instrument can be done without prejudice to right acquired by third persons in good faith and for value

Answer: Where the instrument is the articles of association of a company

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Q36. A company shall be deemed to be unable to pay its debts:

(A) If the company has failed to pay the sum within 21 days after the receipt of such demand
(B) If any execution process issued on a decree in favour of a creditor is returned unsatisfied
(C) If it is proved to the satisfaction of the Tribunal that the company is unable to pay its debts
(D) All of the above

Answer: All of the above

Q37. Under which provision of the Companies Act, 2013, will members be liable for a reduction of the statutory minimum number of members, in the Company ?

(A) Section 3A
(B) Section 7
(C) Section 3
(D) Section 4

Answer: Section 3A

Q38. Which among the following remedies is available for a person who acted upon a false prospectus ?

(A) Damages for fraudulent misrepresentation
(B) Compensation for untrue statement
(C) Damages for non-compliance with the requirements of section 26 of the Companies Act, 2013
(D) All of these

Answer: All of these

Q39. Which two types of business structures are created via a process of incorporation ?

(A) Companies and sole proprietorships
(B) Partnerships and limited liability partnerships
(C) Companies and limited liability partnerships
(D) Companies and partnerships

Answer: Companies and limited liability partnerships

Q40. How is the net worth of a foreign Company calculated for the purpose of Corporate Social Responsibility

(A) The net worth will be calculated as per section 198 of Companies Act, 2013
(B) It shall be calculated as per section 197 of the Companies Act, 2013
(C) It shall be calculated as per section 197 and section 381 of the Companies Act, 2013
(D) It shall be calculated as per section 198 and section 381 of Companies Act, 2013

Answer: It shall be calculated as per section 197 and section 381 of the Companies Act, 2013