CBSE Class 11 Business Studies Formation of a Company Quiz 1

1. Preliminary Contracts are

A binding on the Company B binding on the Company, if ratified after incorporation C binding on the Company, after incorporation D not binding on the Company

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

A Promotion, Commencement of Business, Incorporation, Capital Subscription B Incorporation, Capital Subscription. Commencement of Business, Promotion C Promotion, Incorporation, Capital Subscription, Commencement of Business D Capital Subscription, Promotion, Incorporation, Commencement of Business

3. A proposed name of Company is considered undesirable if

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

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

A 5 B 7 C 12 D 21

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

A one city to another city B with in the same city C one state to another D one country to another country

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

A 3 B 10 C 20 D 7

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

A Memorandum of Association B Articles of Association C Prospectus D 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.

A Called-up capital B subscribed capital C nominal capital D Paid-up capital

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

A Equity B non preference C Preference D all of the above

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

A Actual B face C Market D dividend