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

Here you will find NCERT MCQ Questions for Class 11 Business Studies with Answers PDF Free Download based on the important concepts and topics given in the textbook as per CBSE new exam pattern. This may assist you to understand and check your knowledge about the chapters. Students also can take a free test of the Multiple Choice Questions of Class 11 Business Studies. Each question has four options followed by the right answer. These MCQ Questions are selected supported by the newest exam pattern as announced by CBSE.

Q.1 The Prospectus must be issued to the public within__________days of its date.

(a) 30
(b) 60
(c) 90
(d) 100

Q.2 _______means the total amount of called up capital on the shares issued and subscribed by the shareholders on the capital account.

(a) Called-up capital
(b) subscribed capital
(c) nominal capital
(d) Paid-up capital

(a) Called-up capital

Q.3 Par value of shares means the ______ value of the shares

(a) Actual
(b) face
(c) Market
(d) dividend

(b) face

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

(a) 5
(b) 7
(c) 12
(d) 21

(b) 7

Q.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

Q.6 A person cannot hold directorship in more than ______public companies

(a) 3
(b) 10
(c) 20
(d) 7

Q.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

(b) Articles of Association

Q.8 Among the following which documents are not mandatory to be submitted to the registrar along with an incorporation application by a private company.

(a) Address of Registered office & undertaking
(b) Undertaking and statement of capital
(c) Statement of capital & list of directors
(d) List of directors and statement of capital

(a) Address of Registered office & undertaking

Q.9 The articles of association need to be signed by

(a) All proposed directors
(b) Registrar
(c) Subscribers of memorandum
(d) None of the above

Q.10 “Men may come and men may go but the company exists”- this explains which characteristics of the company as per companies Act 1956.

(a) Separate legal entity
(b) Perpetual Succession
(c) Capacity to sue
(d) None of the above

(b) Perpetual Succession

Q.11 ______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

Q.12 A copy of the ___________must accompany each from of application for shares offered to the public.

(a) Memorandum of association
(b) Prospectus
(c) Articles of association
(d) None of the above

(b) Prospectus

Q.13 _______cannot give invitation to the public to subscribe for any shares in or debentures of the company

(a) Subsidiary company
(b) Statutory Company
(c) Private company
(d) Registered company

Q.14 A proposed name of a Company is considered undesirable if

(a) It is identical to the name of an existing company
(b) It resembles closely the name of an existing company
(c) It is an emblem of the Government of India, the United Nations, etc
(d) In case of any of the above

(d) In case of any of the above

Q.15 Application for approval of name of a company is to be made to

(a) SEBI
(b) Registrar of Companies
(c) Government of India
(d) Government of the State in which Company is to be registered

(b) Registrar of Companies

Q.16 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

(b) Registrar

Q.17 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

(b) Articles of Association

Q.18 Private company prohibits any invitation or acceptance of deposits from persons other than its ______

(a) Members
(b) directors
(c) Partners
(d) Banks

(a) Members

Q.19 Which of the following is not a clause of memorandum of association

(a) situation
(b) capital
(c) subscription
(d) directors

(d) directors

Q.20 The company will be considered as separate person and different from its members from the date (when the) _________

(a) start of business
(b) Apply for registration
(c) receive incorporation certificate
(d) mentioned in certificate

(d) mentioned in certificate

Q.21 The certificate of capital will be issued by

(a) Registrar of companies Act
(b) Controller of companies Act.
(c) Registrar of capital issues
(d) controller of capital issues

(d) controller of capital issues

Q.22 Section 12 of Companies Act 1956, deals with

(a) Incorporation
(b) Share capital
(c) Number of Directors
(d) Shareholders

(a) Incorporation

Class 11 Business Studies MCQs Multiple Choice Questions with Answers

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