Business Law MCQs With Answers 221. ______________ is a voluntary association of persons formed to carry on some business for profit or to promote art, science, education or some charitable purpose.
Incorporation Private company Company Public company View answer Correct answer: (C)
222. Accounts of a company must be audited by an ______________
Chartered Accountant Auditor Board of Directors All of these. View answer Correct answer: (B)
223. A public company has been defined in sec ______________
3(1)(iv) 3(1)(i) 3(1)(iii) 3(1)(ii) View answer Correct answer: (A)
224. The shorter versions of a prospectus is also known as ______________
Deemed prospectus Incomplete prospectus Abridged prospectus Red Herring Prospectus View answer Correct answer: (C)
225. The articles of Association and the memorandum of Association are drafted by ______________
Auditor Director Secretary Register View answer Correct answer: (C)
226. The board of directors delegate the power to ______________
Issue debentures Issue of shares Invest the fund Make loans View answer Correct answer: (D)
227. Holding company is defined in section ______________ of the companies Act.
4(4) 2(2) 3(4) 3(1) View answer Correct answer: (A)
228. The other name of indoor management is called ______________
Golden rule Constructive notice Indoor rule Tarquand rule View answer Correct answer: (D)
229. The statement in lieu of prospectus is drafted in accordance with the particulars set in part I of the ______________ the Act
Schedule I Schedule IV Schedule III Schedule II View answer Correct answer: (D)
230. The right given to a particular class of shareholders are called the ______________
Special rights General rights Class right None of the above View answer Correct answer: (D)