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Business Studies MCQ Class 11 Chapter 7

1. A person cannot hold directorship in more than ____ public companies.
(a) 3
(b) 10
(c) 20
(d) 7

2. 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

3. Preliminary Contracts are
(a) binding on the Company
(b) binding on the Company, if ratified after incorporation
(c) binding on the Company, after incorporation
(d) not binding on the Company

4. _____ 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

5. ______ means the total amount of called up capital on the shares issued and subscribed by the shareholders on capital account.
(a) Called-up capital
(b) subscribed capital
(c) nominal capital
(d) Paid-up capital

6. Par value of shares means the ____ value of the shares.
(a) Actual
(b) face
(c) Market
(d) dividend

7. Stages in the formation of a public company are in the following order
(a) Promotion, Commencement of Business, Incorporation, Capital Subscription
(b) Incorporation, Capital Subscription. Commencement of Business, Promotion
(c) Promotion, Incorporation, Capital Subscription, Commencement of Business
(d) Capital Subscription, Promotion, Incorporation, Commencement of Business

8. The shares of a ______ company can be freely transferable.
(a) Private ltd.
(b) Public ltd.
(c) Partnership
(d) all of the above

9. The Prospectus must be issued to the public within ____ days of its date.
(a) 30
(b) 60
(c) 90
(d) 100

10. A proposed name of Company is considered undesirable if
(a) It is identical with the name of an existing company
(b) It resembles closely with the name of an existing company
(c) It is an emblem of Government of India, United Nations etc.
(d) In case of any of the above

11. _______ 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

12. A private company means a company which has a minimum paid up capital of Rs.______.
(a) 1,00,000
(b) 5,00,000
(c) 50,00,000
(d) none of the above

13. Minimum number of members to form a public company is ______.
(a) 5
(b) 7
(c) 12
(d) 21

14. 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

15. The company needs to obtain prior permission 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

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