Tag: formation and promotion of a company

Questions Related to formation and promotion of a company

Registration is compulsory for ________.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. club

  2. company

  3. HUF

  4. proprietorship

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Correct Option: B
Explanation:

Mandatory Company Registration. Hence, a business with any amount of turnover or capital can be operated as a Proprietorship or Partnership or Limited Liability Partnership or Private Limited Company. However, the Companies Act 2013, does require mandatory company registration

The companies are governed by the Companies Act _________.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. 1956

  2. 1936

  3. 2013

  4. 1856

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Correct Option: C
Explanation:

Companies Act 2013. An Act to consolidate and amend the law relating to companies. The Companies Act 2013  is an Act of the Parliament of India on Indian Company Law which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company.

Which of the following can be treated as the official signature of the company?
1. Rubber stamp
2. A common seal
Select correct answer from the options given below:

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. 1 - Yes

    2 - Yes

  2. 1 - No

    2 - No

  3. 1 - Yes

    2 - No

  4. 1 - No

    2 - Yes

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Correct Option: D
Explanation:

A company seal (sometimes referred to as the corporate seal or common seal) is an official seal used by a company. Company seals were predominantly used by companies in common law jurisdictions, although in modern times, most countries have done away with the use of seals.

Below mentioned are factors that have allowed small companies to act like they are big ones. Pick the right one _______________.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. Competition

  2. Economic development

  3. Both a & b

  4. Technology

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Correct Option: C
Explanation:

Competition and economic development are two factors that have allowed small companies to act like they are big in this dynamic environment and competitive market.

E-form no. 2 can be signed by___________________.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. Attorney entitled to appear before high count

  2. Company secretary in whole time practice

  3. Chartered Accountant in work time practice

  4. All of the above

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Correct Option: D
Explanation:
E-form no. 2 can be signed by :
Attorney entitled to appear before high count
Company secretary in whole time practice
Chartered Accountant in work time practice.

Which company was formed by seven engineers with a capital of Rs. 10000____________.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. Asian Paints

  2. Bharti Airtel

  3. Infosys

  4. None of the above

Show answer
Correct Option: C
Explanation:

Infosys was conceived in 1981 in Pune by Narayan Murthy, Nandan Nilekani, N S Raghavan, S Gopalakrishnan, S D Shibulal, K Dinesh and Ashok Arora, all former employees of Patni Computer Systems. The company was started with meager initial capital of Rs 10,000 and was named Infosys Consultants. 

E-form no. 32 is filled for________________.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. Appointment of director

  2. Appointment of manager

  3. Appointment of secretary

  4. All of the above

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Correct Option: D
Explanation:

E- form 32 is generally filled with registrar for conforming appointment of director, manager, or secretary of company.

A company created jointly by two or more companies for mutual advantage is called _____________.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. Consolidation

  2. Merger

  3. Joint Venture

  4. None of the above

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Correct Option: A
Explanation:

Action or process of combining two or more companies into a single more effective or coherent whole known as consolidation.

An act is said to be ultra vires Company when it is beyond the powers___________.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. of the Company,

  2. of the Directors,

  3. of the Directors but not the Company,

  4. Conferred on the Company by the Articles.

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Correct Option: D
Explanation:

 In corporate law, ultra vires describes acts attempted by a corporation that are beyond the scope of powers granted by the corporation's objects clause, articles of incorporation or in a clause in its Bylaws, in the laws authorizing a corporation's formation, or similar founding documents.

Which of the following is benefit from Incorporation of a Company?

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. Loss of Privacy

  2. Possibility of Frauds

  3. Greater Public Accountability

  4. Independent Legal Entity

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Correct Option: D
Explanation:
Separate Legal Entity:
Under Company law, a company becomes a separate legal entity as compared to its members. The company is distinct and different from its members in law. It has its own seal and its own name, its assets and liabilities are separate and distinct from those of its members. It is capable of owning property, incurring debt, and borrowing money, employing people, having a bank account, entering into contracts and suing and being sued separately.