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Indian Companies Act Law Best 78 GK MCQ SET:-1
Q71. A Private company can commence business as soon as it receives
(A) Certification of incorporation
(B) Letter of intent
(C) Occupation certificate
(D) None of the above
Answer: Certification of incorporation
Q72. On incorporation of a company, the Registrar of Companies, in addition to the Certificate of Incorporation, issues a unique identification number, namely . . . . . . . .
(A) Unique corporate number
(B) Corporate identification number
(C) Company identification number
(D) Unique identification number
Answer: Corporate identification number
Q73. A Director appointed to fill up casual vacancy will hold office
(A) For a term of 5 years
(B) For a term of 3 years
(C) Up to next meeting of the Board
(D) Up to date of expiry of term of office of outgoing Director
Answer: Up to date of expiry of term of office of outgoing Director
Q74. A public company can borrow money
(A) After one year of incorporation
(B) After obtaining certificate of commencement of business
(C) Before incorporation
(D) Soon after incorporation
Answer: After obtaining certificate of commencement of business
Q75. What do you mean by pursuit ?
(A) Authorising the destruction of corporations for the purpose of engaging in any lawful enterprise, business, pursuit, or occupation, is not restricted in meaning to a scheme for making money, but includes any object consistent with the interest of society
(B) Authorising the dissolution of corporations for the purpose of engaging in any lawful enterprise, business, pursuit, or occupation, is not restricted in meaning to a scheme for making money, but includes any object consistent with the interest of society
(C) Authorising the formation of corporations for the purpose of engaging in any lawful enterprise, business, pursuit, or occupation, is not restricted in meaning to a scheme for making money, but includes any object consistent with the interest of society
(D) Authorising the reconstruction of corporations for the purpose of engaging in any lawful enterprise, business, pursuit, or occupation, is not restricted in meaning to a scheme for making money, but includes any object consistent with the interest of society
Answer: Authorising the formation of corporations for the purpose of engaging in any lawful enterprise, business, pursuit, or occupation, is not restricted in meaning to a scheme for making money, but includes any object consistent with the interest of society
Q76. Under the Companies Act every person subscribing to the Memorandum of a company must take at least
(A) 100 shares
(B) 20 shares
(C) 10 shares
(D) 1 share
Answer: 1 share
Q77. When there is no profit in one year or the profit of a company is not enough to pay the fixed dividend on preference shares, the arrears of dividend are to be carried forward and paid before a dividend is paid on the ordinary shares. This is called:
(A) Participating preference shares
(B) Cumulative preference shares
(C) Non-cumulative preference shares
(D) Non-Participating preference shares
Answer: Cumulative preference shares
Q78. Which among the following is regarded as the most important document of a company ?
(A) Annual Report
(B) Prospectus
(C) Articles of Association
(D) Memorandum of Association
Answer: Memorandum of Association