Formation of a Company MCQ Questions for Class 11 Business Studies Chapter 7 with Answers

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We have completed the NCERT/CBSE chapter-wise Multiple Choice Questions for Class 11 Business Studies book Chapter 7 Formation of a Company with Answers by expert subject teacher for latest syllabus and examination. You can Prepare effectively for the exam, Taking the help of the Class 11 Business Studies Objective Questions PDF free of cost from here. Students can take a free test of the Multiple Choice Questions of Formation of a Company. Each Questions has four options followed by the right answer. Download the Business Studies Quiz Questions with Answers for Class 11 free Pdf and prepare to exam and help students understand the concept very well.

MCQ Questions for Class 11 Business Studies with Answers

Q1. Which of the following clause of the Memorandum of Association cannot be altered?

(i) Name
(ii) Object
(iii) Situation
(iv) Liability

(iv) Liability

Q2. The Prospectus must be issued to the public within___ days of its date

(i) 30
(ii) 60
(iii) 90
(iv) 100

(iii) 90

Q3. A proposed name of Company is considered undesirable if

(i) It is identical with the name of an existing company
(ii) It resembles closely with the name of an existing company
(iii) It is an emblem of Government of India, United Nations etc.
(iv) In case of any of the above

(iv) In case of any of the above

Q4. Minimum number of members to form a public company is

(i) 5
(ii) 7
(iii) 12
(iv) 21

(ii) 7

Q5. Men may come and men may go but the company exist”- this explains which characteristics of the company as per companies Act 1956

(i) Separate legal entity
(ii) Perpetual Succession
(iii) Capacity to sue
(iv) None of the above

(ii) Perpetual Succession

Q6. A prospectus is issued by

(i) A private company
(ii) A public company seeking investment from public
(iii) A public enterprise
(iv) A public company

(ii) A public company seeking investment from public

Q7. Par value of shares means the __ value of the shares

(i) Actual
(ii) face
(iii) Market
(iv) dividend

(ii) face

Q8. Powers, rights, remuneration, qualification and duties of directors are discussed clearly in

(i) Memorandum of Association
(ii) Articles of Association
(iii) Prospectus
(iv) none of the above

(ii) Articles of Association

Q9. —share capital has priority both in repayment of dividend as well as capital.

(i) Equity
(ii) non preference
(iii) Preference
(iv) all of the above

(iii) Preference

Q10. Application for approval of name of a company is to be made to

(i) SEBI
(ii) Registrar of Companies
(iii) Government of India
(iv) Government of the State in which Company is to be registered

(ii) Registrar of Companies

Q11. The certificate of capital will be issued by

(i) Registrar of Companies Act
(ii) Controller of companies Act
(iii) Registrar of capital issues
(iv) Controller of capital issues

(iv) Controller of capital issues

Q12. A prospectus is issued by

(i) A private company
(ii) A public company seeking investment from public
(iii) A public enterprise
(iv) A public company

(ii) A public company seeking investment from public

Q13. The shares of a ___company can be freely transferable

(i) Private ltd
(ii) Public ltd
(iii) Partnership
(iv) all of the above

(ii) Public ltd

Q14. A private company means a company which has a minimum paid up capital of Rs.

(i) 1,00,000
(ii) 5,00,000
(iii) 50,00,000
(iv) none of the above

(i) 1,00,000

Q15. For example Par value is Rs10 and it is issued at Rs15 then Rs5 is the __ amount

(i) Profit
(ii) Market value
(iii) dividend
(iv) premium

(iv) premium

Q16. Which of the following is not a clause of memorandum of association

(i) situation
(ii) capital
(iii) subscription
(iv) directors

(iv) directors

Q17. Section 12 of Companies Act 1956, deals with

(i) Incorporation
(ii) Share capital
(iii) Number of Directors
(iv) Shareholders

(i) Incorporation

Q18. Application for approval of name of a company is to be made to

(i) SEBI
(ii) Registrar of Companies
(iii) Government of India
(iv) Government of the State in which Company is to be registered

(ii) Registrar of Companies

Q19. The articles of association need to be signed by

(i) All proposed directors
(ii) Registrar
(iii) Subscribers of memorandum
(iv) None of the above

(iii) subscribers of the memorandum

Q20. Among the following which documents are not mandatory to be submitted to the registrar along with incorporation application by a private company.

(i) Address of Registered office & undertaking
(ii) Undertaking and statement of capital
(iii) Statement of capital & list of directors
(iv) List of directors and statement of capital

(i) Address of Registered office & undertaking

Q21. A statement of nominal capital must be given at the time of incorporation by the company when the share capital is less than

(i) 50 Lakh
(ii) 1 crore
(iii) 10 Lakh
(iv) 25 Lakh

(iv) 25 Lakh

Q22. A prospectus is issued by

(i) A private company
(ii) A public company seeking investment from public
(iii) A public enterprise
(iv) A public company

(ii) A public company seeking investment from public

Q23. Section 12 of Companies Act 1956, deals with

(i) Incorporation
(ii) Share capital
(iii) Number of Directors
(iv) Shareholders

(i) Incorporation

Q24. Application for approval of name of a company is to be made to

(i) SEBI
(ii) Registrar of Companies
(iii) Government of India
(iv) Government of the State in which Company is to be registered

(ii) Registrar of Companies

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MCQ Questions for Class 11 Business Studies with Answers

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