BUSINESS STUDIES FOR CLASS 11 CHAPTER 7 FORMATION OF A COMPANY MCQS ALONG WITH ANSWERS

Free CBSE Business Studies Multiple Choice Questions for Class 11 along with answers, Chapter 7: Formation of a Company. Business Studies MCQs for Class 11 chapter-wise with answers are prepared based on the current exam pattern. Students can tackle MCQs with answers to realise their spadework level.

1. The application for registration of a company should be presented to the registrar of the state in which the _______________ of the company is to be situated.

(a) Manufacturing plant

(b) The first branch

(c) Business office

(d) Any of the above

Answer: (c) Business office

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

(a) Address of registered office and undertaking

(b) Undertaking and statement of capital

(c) Statement of capital, address of the office, and list of directors

(d) List of directors and statement of capital

Answer: (a) Address of registered office and undertaking

3. If a company is instructed to change its name, which resembles the name of an existing company then the company can change the name by ______.

(a) Passing a special resolution

(b) Obtaining permission from the Central Government

(c) Passing an ordinary resolution

(d) Both a and b

Answer: (c) Passing an ordinary resolution

4. If the proposed nominal capital is more than 25 lakh at the time of incorporation, then the company needs to submit ________________ along with the application.

(a) Statement of capital

(b) Certificate of incorporation

(c) Certificate of capital

(d) Certificate of incorporation

Answer: (c) Certificate of capital

5. _________ are companies created by a special act of the legislature.

(a) Registered company

(b) Public Ltd Company

(c) Private Ltd company

(d) Statutory company

Answer: (d) Statutory company

6. A Government Company means any company in which not less than 51% of the paid-up share capital is held by _____.

(a) Central Government

(b) State Government

(c) Both a and b

(d) Neither a nor b

Answer: (c) Both a and b

7. If the company can make arrangements for raising the capital privately, so that pubic appeal is unnecessary, the company is required to prepare a _________________.

(a) Prospectus

(b) Statement in lieu of Prospectus

(c) Certificate of Prospectus

(d) None of the above

Answer: (b) Statement in lieu of Prospectus

8. __________ means the total amount of called up share capital which is actually paid to the company by the members.

(a) Nominal capital

(b) Reserve capital

(c) Called up capital

(d) Paid-up capital

Answer: (d) Paid-up capital

9. 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

Answer: (b) Registrar of Companies

10. Preliminary Contracts are signed ______.

(a) Before the incorporation

(b) After incorporation but before the capital subscription

(c) After incorporation but before the commencement of business

(d) After commencement of business

Answer: (a) Before the incorporation

11. 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

Answer: (b) Registrar

12. The company will be considered as a 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 the certificate

Answer: (d) Mentioned in the certificate

13. ‘Men may come and men may go, but the company exists.’ – This explains the 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

Answer: (b) Perpetual Succession

14. ___________ cannot give an 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

Answer: (c) Private Company

15. 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

Answer: (b) Articles of Association

We trust that the offered Business Studies MCQs for Class 11 with respect to Chapter 7: Formation of a Company will help you. Assuming you have any questions with respect to CBSE Class 11 Business Studies Formation of a Company MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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