MCQOPTIONS
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MCQOPTIONS
This section includes 189 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Commerce (B Com) knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
A person shall not be eligible for appointment as a managing or whole-time director or a manager of a company if he had been detained for any period under the__________ |
| A. | Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974. |
| B. | Prevention of Money Laundering Act, 2001 |
| C. | Foreign Exchange Management Act, 1999 |
| D. | None of the above |
| Answer» B. Prevention of Money Laundering Act, 2001 | |
| 52. |
No Company shall appoint any individual as its managing director for a term exceeding______ at a time |
| A. | 5 years |
| B. | 2 years |
| C. | 6 years |
| D. | 1 year |
| Answer» B. 2 years | |
| 53. |
No company shall appoint any individual as its managing director for a term exceeding: |
| A. | 3 years at a time |
| B. | 5 years at a time |
| C. | 4 years at a time |
| D. | 2 years at a time |
| Answer» C. 4 years at a time | |
| 54. |
No person can be managing director of __________public or private company (which is a subsidiary of a public company). |
| A. | more than 1 |
| B. | more than 2 |
| C. | more than 3 |
| D. | more than 4 |
| Answer» B. more than 2 | |
| 55. |
Reappointment of Managing director and Whole time director shall not be made earlier than |
| A. | 3 months before the expiry of his term |
| B. | 12 months before the expiry of his term |
| C. | 9 months before the expiry of his term |
| D. | 6 months before the expiry of his term |
| Answer» C. 9 months before the expiry of his term | |
| 56. |
If the office of any whole-time key managerial personnel is vacated, the resulting vacancy shall be filled-up by the Board at a meeting of the Board within a period of |
| A. | 3 months from the date of such vacancy |
| B. | months from the date of such vacancy |
| C. | 6 months from the date of such vacancy |
| D. | none of the above |
| Answer» D. none of the above | |
| 57. |
A company may be wound up by the Court by: |
| A. | Special resolution |
| B. | Inability to pay debts |
| C. | Default |
| D. | All of the above |
| Answer» E. | |
| 58. |
The number of members of a private Company is limited to |
| A. | 100 |
| B. | 150 |
| C. | 200 |
| D. | 250 |
| Answer» D. 250 | |
| 59. |
Section 12 of the Companies Act 1956, deals with |
| A. | Incorporation |
| B. | Share Capital |
| C. | Number of Dorectors |
| D. | Shareholders |
| Answer» B. Share Capital | |
| 60. |
The application for registration of a company should be presented to the _______ of the state appointed under Companies Act 1956 |
| A. | Controller |
| B. | Registrar |
| C. | Governor |
| D. | Registration Officer |
| Answer» C. Governor | |
| 61. |
A company formed and registered under the Act of 2013 for a future project or to hold an asset or an intellectual property is called__________ |
| A. | Dormant Company |
| B. | (b)Nidhis Company |
| C. | (c) Foreign Company |
| D. | (d) Unlimited Company |
| Answer» B. (b)Nidhis Company | |
| 62. |
Part of authorized capital which is actually offered to the public for sale is called |
| A. | Paid-up capital |
| B. | (b) Subscribed capital |
| C. | (c) Issued capital |
| D. | (d)Authorised Capital |
| Answer» D. (d)Authorised Capital | |
| 63. |
According to Companies Act, 2013, the first annual general meeting of a company should be held within a period of ________from the date of closing of the first financial year of the company. |
| A. | 7 months |
| B. | 8 months |
| C. | 9 months |
| D. | 10 months |
| Answer» D. 10 months | |
| 64. |
According to Companies Act,minimum number of members in case of public company |
| A. | 1 |
| B. | 2 |
| C. | 5 |
| D. | 7 |
| Answer» E. | |
| 65. |
A director who is known as an executive director is: |
| A. | Manager |
| B. | Whole time director |
| C. | Managing director |
| D. | None of the above |
| Answer» C. Managing director | |
| 66. |
A director or manager in a company may be paid remuneration by way of |
| A. | a specified percentage of the net profits of the company |
| B. | Monthly payment |
| C. | partly by monthly payment and partly at a specified percentage of net profits of the company. |
| D. | (d)All of the above |
| Answer» E. | |
| 67. |
Debentures that are not negotiable instruments are: |
| A. | Registered debentures |
| B. | Bearer Debentures |
| C. | Redeemable debentures |
| D. | Secured debentures |
| Answer» B. Bearer Debentures | |
| 68. |
_______means closing of a place of employment, or suspension of work, or refusal by an employer to continue to employ any number of persons employed by him. |
| A. | Lay-off |
| B. | Lock out |
| C. | Retrenchment |
| D. | Strike |
| Answer» C. Retrenchment | |
| 69. |
The affairs of the company are being conducted in a manner prejudicial to public interest or in a manner prejudicial to the interests of the company is known as- |
| A. | Oppression |
| B. | Mismanagement |
| C. | Winding up |
| D. | None of the above |
| Answer» C. Winding up | |
| 70. |
In the administration of the affairs of the company, who determine the fate of the company: |
| A. | Minority shareholders |
| B. | Directors |
| C. | Majority shareholders |
| D. | Chairman |
| Answer» D. Chairman | |
| 71. |
Which of the following is an act of oppression & mismanagement? |
| A. | Continuous losses to the company in spite of the efforts by the members and directors |
| B. | Payment of no dividend or low dividend |
| C. | Payment of salary to the directors and not declaring the dividend |
| D. | Sale of asset for the benefits of directors themselves |
| Answer» E. | |
| 72. |
Which of the following is an act of oppression &mismanagement |
| A. | Continuous losses to the company in spite of the efforts by the members and directors |
| B. | Payment of no dividend or low dividend |
| C. | Payment of salary to the directors and not declaring the dividend |
| D. | Sale of asset for the benefits of directors themselves |
| Answer» E. | |
| 73. |
A person liable to contribute to the assets of a Company in the event of its being wound up is called |
| A. | Shareholder |
| B. | Company Member |
| C. | Contributory |
| D. | None of the above |
| Answer» D. None of the above | |
| 74. |
A Commissioner for Employee's Compensation is appointed by |
| A. | Corporate Body |
| B. | Board of Directors |
| C. | State Government |
| D. | None of the above |
| Answer» D. None of the above | |
| 75. |
When a company has control over another company it is known as: |
| A. | Controlled company |
| B. | Subsidiary company |
| C. | Holding company |
| D. | None of the above |
| Answer» D. None of the above | |
| 76. |
In case of a private company, __________personally present shall be the quorum for a meeting of the company. |
| A. | members |
| B. | 2 members |
| C. | 3 members |
| D. | 4 members |
| Answer» C. 3 members | |
| 77. |
The meetings of a company can be classified as: |
| A. | Meetings of the shareholders |
| B. | Meetings of debenture holders |
| C. | Meetings of directors |
| D. | All of the above |
| Answer» E. | |
| 78. |
The most method to ascertain the sense of a meeting and commonly used voting method at company meeting is: |
| A. | Voting by show of hands |
| B. | Voting by Poll |
| C. | Voting by secret ballot |
| D. | None of the above |
| Answer» B. Voting by Poll | |
| 79. |
Any rule in the articles of the association contrary to the memorandum is ____________. |
| A. | Invalid |
| B. | Void |
| C. | Valid |
| D. | Voidable |
| Answer» B. Void | |
| 80. |
The total face value of the shares which the company is authorized to issue by its Memorandum of Association is |
| A. | Nominal capital |
| B. | Issued capital |
| C. | Subscribed capital |
| D. | Paid up capital |
| Answer» B. Issued capital | |
| 81. |
Companies that have implied powers to borrow, even without any specific power to do so in their memorandum or articles are: |
| A. | Private companies |
| B. | Public companies |
| C. | Non trading companies |
| D. | Trading companies |
| Answer» E. | |
| 82. |
Closure means the permanent closing down of a place of employment or part thereof. |
| A. | Lay-off |
| B. | Lock out |
| C. | Retrenchment |
| D. | Closure |
| Answer» E. | |
| 83. |
A director may be removed from his office by: |
| A. | The shareholders |
| B. | The Company Law Board |
| C. | The Central Government |
| D. | All of the above |
| Answer» E. | |
| 84. |
Which of the following does not amount to mismanagement? |
| A. | merely because company is making losses |
| B. | arrangement with creditors in company s bonafide interest |
| C. | removal of directors |
| D. | all of the above |
| Answer» E. | |
| 85. |
Any invitation issued to the public inviting it to deposit money with the company or to take share or debentures of the company such invitation may be in the form of a document or a notice, circular, advertisement etc is known as |
| A. | Prospectus |
| B. | Documents |
| C. | Promotion |
| D. | All of the above |
| Answer» B. Documents | |
| 86. |
The ___________________ is a director who is entrusted with substantial powers of management. |
| A. | First Directors |
| B. | Whole Time Directors |
| C. | Managing Directors |
| D. | Board of Directors |
| Answer» D. Board of Directors | |
| 87. |
The Memo and Articles are ____________, which may be inspected by anybody at the office of the Registrar of Companies. |
| A. | Shareholder Documents |
| B. | Company Documents |
| C. | Public Documents |
| D. | Director Documents |
| Answer» D. Director Documents | |
| 88. |
Within how many days should the certified copy of order of Tribunal be filled with Registrar |
| A. | 30 days |
| B. | As per specified in order |
| C. | 60 days |
| D. | 90 days |
| Answer» B. As per specified in order | |
| 89. |
The following persons may apply to the Company Law Board for relief in case of oppression & mismanagement: |
| A. | In the case of a company having a share capital not less than 100 members of the company |
| B. | In the case of a company not having a share capital not less than 1/5th of the total number of its members |
| C. | By an order of the Central government |
| D. | All of the above |
| Answer» E. | |
| 90. |
If the company is not in a position to pay its debts and the directors make no declaration of solvency it is called- |
| A. | Members Voluntary Winding up |
| B. | Creditors Voluntary Winding up |
| C. | Compulsory Winding Up |
| D. | Voluntary Winding Up by the Supervision of the Tribunal |
| Answer» C. Compulsory Winding Up | |
| 91. |
The official record of the proceedings of the meetings of directors or shareholders of a company is: |
| A. | Resolution |
| B. | Meetings |
| C. | Quorum |
| D. | Minutes |
| Answer» D. Minutes | |
| 92. |
If the directors make o declaration of solvency before the members pass a winding up resolution, the winding up will be: |
| A. | Members voluntary winding up |
| B. | Winding up by the Court |
| C. | Creditors voluntary winding up |
| D. | Winding up subject to supervision of the court |
| Answer» D. Winding up subject to supervision of the court | |
| 93. |
Disablement which incapacitates an employee for all work which he was capable of performing at the time of the accident is called |
| A. | Total Disablement |
| B. | Partial Disablement |
| C. | Temporary Partial Disablement |
| D. | Permanent Partial Disablement |
| Answer» B. Partial Disablement | |
| 94. |
Who are the persons who can file petition for winding up of the company |
| A. | Company & its Contributories. |
| B. | The Central Government or State Government. |
| C. | Both (a) and (b) |
| D. | Registrar on his own account |
| Answer» D. Registrar on his own account | |
| 95. |
The maximum amount which a company is authorised to raise by issue of shares and upon which it pays the stamp and registration fee is : |
| A. | Issued capital |
| B. | Called up capital |
| C. | Subscribed capital |
| D. | Nominal or registered capital |
| Answer» E. | |
| 96. |
What are the powers of the tribunal on receipt of petition for winding up? |
| A. | To dismiss it with or without cost |
| B. | To make interim orders |
| C. | To appoint provisional liquidator |
| D. | All of above |
| Answer» E. | |
| 97. |
_________is a sum of money given by the employer to the employee at the end of his service. |
| A. | Gratuity |
| B. | Salary |
| C. | Wages |
| D. | Bonus |
| Answer» B. Salary | |
| 98. |
A document which shows on the face of it, that the company has borrowed a certain sum of money from the holder thereof upon certain terms and conditions is known as- |
| A. | Equity shares |
| B. | Debentures |
| C. | Mortgage |
| D. | Preference Shares |
| Answer» C. Mortgage | |
| 99. |
Which of the following is applicable in case of winding up of a company? |
| A. | Companies Act,2013 |
| B. | Insolvency and Bankruptcy Code,2016 |
| C. | Both a and b |
| D. | Neither (a) nor (b) |
| Answer» D. Neither (a) nor (b) | |
| 100. |
In which of the following cases majority rule does not prevail? |
| A. | Where the act is ultra vires the company |
| B. | where the act is illegal to the company |
| C. | where the act infringes personal rights |
| D. | all of the above |
| Answer» E. | |