COMMERCE : MCQ
Which of the following is not the characteristic of sole proprietorship?
Single ownership
One man control
Non-flexibility
Whole profit to proprietorship
What is the advantage of sole proprietorship
Small capital
Hasty decision
Limited capital
Limited managerial ability
The agreement of partnership
Must be oral
Must be in writing
Must be writing in the stamp paper
Can be either oral or in writing
Partnership may come into existence
By the operation of law
By an express agreement
By an express or implied agreement
By inheritance of property
Management of a Jointstock company is entrusted to
The Registrar of companies
The Board of Directors
The shareholder
The debenture holders
Registration is compulsory in the case of
A Sole trader
A partnership
A joint stock company
A joint hindu family business
In a co-operative society
One share one vote principle is followed
One man one vote principle is followed
A member must have 2 votes
Shares are transferable
Co-operative society can be started
Only in villages
In towns and villages
Only in cities
Only in State headquarters
The most suitable form of organisation for operating defence industries is
Government Company
Public corporation
Departmental organisation
Board organization
The share capital of the government company must not be less than
75%
60%
95%
51%
A multinational company is also known as
Global giant
Partnership
Co-operative society
Public corporation
Membership by birth is main feature in
Sole trader
Joint Hindu family business
Co-operative society
Partnership
Sole trading business can be started by:
At least two persons
At least seven persons
Any one person
The liability of a soletrader is:
Limited only to his investment in the business
Limited to total property of the business
Unlimited
Sole proprietorship is suitable for:
Large scale concerns
Medium scale concerns
Small scale concerns
Decision-making process in soletrading business is:
Quick
Slow
Neither quick nor slow
A sole trader :
Cannot keep his business secrets
Can keep his business secrets
None of the above
Risk featuring capacity in a sole trading concern is
Limited
Unlimited
None
A sole trading concern is
Not flexible
Highly flexible
Lesser flexible
"One man control is the best in the world" is said by
O.R.Krishnaswami
P.K. Ghosh
Y.K. Bhushan
William R. Basset
A partnership is formed by
Agreement
Relationship among person
The direction of government
The basis of partnership is
Utmost good faith
Money available for investment
Desire to work together
A partnership firm may be registered under
1949 Act
1956 Act
1932 Act
Registration of partnership is
Compulsory
Optional
Not necessary
In partnership there exists a relationship of
Principal and agent
Owner and servant
Employer and employee
Partnership was started in the year
1907
1932
1949
1956
_________ is described as an extension of the ‘Principle of Agency’.
Partnership
Sole tradership
Company
Co-operatives
A partner who takes active part in the management of the partnership firm is
Sleeping partner
Nominal partner
Managing partner
Sub partner
The authority to a partner is expressly conferred by an agreement, it is called :
Implied authority
Express authority
None of these
Every partner has the right to receive interest on loans and advances at the rate of ________ per annum.
6%
10%
12%
15%
Registration of a joint stock company is
Compulsory
Optional
Compulsory for public limited companies and optional for private limited companies
Optional for public limited companies and compulsory for private limited companies
The minimum number of members for a public limited company is
2
3
7
10
The liability of shareholders of a private limited company is limited to
The paid up value of the shares
Amount remaining unpaid on the shares
The extent of private assets
Amount called up
A private limited company can commence business
Immediately on receiving the certificate of incorporation
Only after the certificate of commencement of business is received
On getting name approval from the Registrar
On filing all the documents necessary for formation with the Registrar
The existence of a company comes to a close
On the death of all its promoters
On death of all the directors of the Board
On transfer of shares by most of its original members
None of the above
Table A of the Companies Act is a
Model minutes book
model form of balance sheet
Model of Articles of Association
Model of memorandum of association
Which of the following documents define the scope of a company’s activities?
Momorandum of Association
Articles of Association
Prospectus
Statutory Declaration
Which of the following is created by a Special Act of Parliament or in State Assemblies?
Chartered company
Foreign company
Government company
Statutory company
Which of the following companies must file with the Registrar a statement in lieu of prospectus?
A public limited company which raises funds from the public through issue of shares
A public limited company which has made arrangement for racing its capital from directors and their relatives
A private limited company
All of them
The minimum subscription specified in the prospectus must be received within
90 days
120 days
130 days
60 days
A preference share has priority in
Dividend only
Only in return of capital at the time of winding up
Voting rights
Both dividend and return of capital on winding up
Shares can be forfeited for
Non-payment of any debt due to the company
Not attending three annual general meetings consecutively
For non payment of call money
For violent activities at the annual general meetings
Where the shares are issued at a discount and the nominal value of share is Rs.100, the maximum discount that can be allowed is
Rs.5
Rs. 10
Rs. 20
Rs. 15
Debenture holders of a company are its
Creditors
Members
Credit customers
Borrowers
Debenture holders are entitled to receive interest in the following circumstances
When there are profits
When shareholders also get dividend
Every year irrespective of loss
All the above
First directors are appointed by
Members in statutory meeting
Members in the first Annual General meeting
By being named in the Articles of Association
Registrar of Companies
A director is acting as
Agent of the company
Trustee of the company
Chief executive officer of the company
All of these
A person can hold directorship of not more than _________ public limited companies.
10
15
20
Limitless
The value of qualification shares of a director in a public limited company shall not exceed
Rs. 5,000
Rs. 5,00,000
Rs. 50,000
Rs. 500
The overall maximum managerial remuneration in a public limited company shall not exceed
11% of net profits
11% of paid up capital and free reserves
5% of net profits
5% of paid up capital and free reserves
A company secretary is appointed by
Government
The Institute of Company Secretaries of India
The Board of Directors
Shareholders in Annual General Meetings
A company should compulsorily appoint a qualified company secretary, having a paid up capital of more than
Rs. 5 Lakh
Rs. 50 Lakh
Rs. 25 Lakh
Rs. 15 Lakh
Which of the following must hold a statutory meeting ?
Statutory Companies
Private Limited Companies
Public Limited Companies
Chartered Companies
The interval between two annual general meetings shall not exceed
15 months
12 months
18 months
20 months
Which of the following business is not transacted at the Annual General Meeting?
Appointment of auditors
Issue of debentures
Appointment of directors in place of those retiring
Declaration of dividend
Who can call Extraordinary General Meeting ?
Company Law Tribunal
Board of Directors on its own or on the requisition of members
By the requisitionists themselves on Board’s failure to convene
All of these
The list of business to be transacted at the meeting is
Agenda
Minutes
Resolution
How many types of shareholders' meetings are there?
Two
Three
Four
None of these
Quorum is fixed by
Memorandum of Association
Articles of Association
Prospectus
None of the above
How many directors should certify the statutory report?
2
3
4
5
Issuing shares at a discount requires _______________ resolution.
Ordinary
Special
Resolution requiring special notice
Meetings of Directors are called as
Board meetings
Shareholder's meetings
Extra Ordinary General Meeting
Statutory Meeting
In a company, voting may be of _____________ types.
2
3
4
None
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