Tag: promoter

Questions Related to promoter

Contracts which entered into, by Agents or trustees on behalf of a prospective Company before it has come into existence are 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. Provisional Contracts

  2. Pre-Incorporation Contracts

  3. Both Provisional and Pre-Incorporation Contracts

  4. None of the above

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Correct Option: B
Explanation:
As the name stands, these contracts are made before the formation of a company. For the formation of the company, the promoters are required to enter into various contracts with third parties e.g. purchasing some property or hiring the services of professions like lawyers, technicians, etc.

After the incorporation of the company such contracts are not attached to the company, as the company obtains legal entity status only after its incorporation.

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. Either 1 or 2

  2. Only 1

  3. 1 and 2

  4. Only 2

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Correct Option: D
Explanation:
A company being an artificial person cannot sign for itself. A seal with the name of the company embossed on it acts as a substitute for the company’s signatures. The company gives its assent to any contract or document by the common seal. A document which does not bear the common seal of the company is not binding on it.

A company may allot fully paid shares to promoters or any other party for the services rendered by them, share capital account is credited and ___________ debited.

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. Preliminary expenses account

  2. Goodwill account

  3. Capital reserve account

  4. Suspense account

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Correct Option: B

If a company makes default in holding AGM, then fine imposed on the company & every officer of the company who is in default is upto ___________.

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. 25,000

  2. 50,000

  3. 5,000

  4. 1,00,000

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Correct Option: D
Explanation:

If a company makes default in holding an annual general meeting.

Fine which may extend to Rs. 1,00,000 on the company and every officer of the company who is in default may be levied and for continuing default, with a further fine of Rs. 2500 per day during which the default continues may be levied.

Under the Companies Act, which of the following powers can be exercised by the Board of Directors ____________________.

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. Power to sell any of the companies undertakings

  2. Power to make calls

  3. Power to borrow in excess of paid up capital

  4. Power to appoint an auditor

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Correct Option: B
Explanation:
The Board of Directors of a company can exercise the following powers on behalf of the company only by means of resolutions passed at meetings of the Board:

To make calls on shareholders in respect of money unpaid on their shares;
To authorize buy-back of securities under section 68;
To issue securities, including debentures, whether in or outside India;
To borrow monies;
To invest the funds of the company;
To grant loans or give guarantee or provide security in respect of loans;
To approve financial statement and the Board’s report;
To diversify the business of the company;
To approve amalgamation, merger or reconstruction.

MCA stands 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. Ministry of Corporate affairs

  2. Manager of Company Acts

  3. Ministry of Corporate

  4. None of the above Administration

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Correct Option: A
Explanation:

MCA stands for Ministry of Corporate Affairs.

MCA regulates corporate affairs in India through the Companies Act, 1956, 2013 and other allied Acts, Bills and Rules. MCA also protects investors and offers many important services to stakeholders. 

A company is a _________ on the other hand a club is a ____________.

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. Trading association, non trading association

  2. Non trading association, trading association

  3. Trading association, trading association

  4. None of these

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Correct Option: A
Explanation:

Generally company used to indulge in activities of trading of goods and services whereas club indulge in non trading activities.

Secretarial Compliance Report is ___________________.

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. optional for a company

  2. required when a company does not have a whole-time secretary

  3. required if a company is not required to employ a whole time secretary and has a paid-up share capital of Rs. 10 lakh or more

  4. required for companies as are notified by the Central Government

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Correct Option: C

Which of the following is a part of top management?

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. The board of directors

  2. Chief executive

  3. Both (a) and (b)

  4. Manager

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Correct Option: C
Explanation:

Top level management consists of chairman, board of directors, CEO etc. Top level management has those persons who are important for leading and directing the efforts of other people.

Which of the following taxes has reduced the net earnings of companies?

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. Sales tax

  2. Capital gains tax

  3. Wealth tax

  4. Corporate income tax

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Correct Option: D
Explanation:

An assessment levied by a government on the profits of a company. The rate of corporate income tax paid by a business varies between countries, although since corporations are legal entities distinct from their owners and operators, they are typically taxed as if they were people.

Therefore corporate income tax has reduced the net earnings of companies.