Business Law MCQS With Answers 221 to 230

 

Business Law

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.

1. Incorporation
2. Private company
3. Company
4. Public company

Correct answer: (C)
Company

222. Accounts of a company must be audited by an ______________

1. Chartered Accountant
2. Auditor
3. Board of Directors
4. All of these.

Correct answer: (B)
Auditor

223. A public company has been defined in sec ______________

1. 3(1)(iv)
2. 3(1)(i)
3. 3(1)(iii)
4. 3(1)(ii)

Correct answer: (A)
3(1)(iv)

224. The shorter versions of a prospectus is also known as ______________

1. Deemed prospectus
2. Incomplete prospectus
3. Abridged prospectus
4. Red Herring Prospectus

Correct answer: (C)
Abridged prospectus

225. The articles of Association and the memorandum of Association are drafted by ______________

1. Auditor
2. Director
3. Secretary
4. Register

Correct answer: (C)
Secretary

226. The board of directors delegate the power to ______________

1. Issue debentures
2. Issue of shares
3. Invest the fund
4. Make loans

Correct answer: (D)
Make loans

227. Holding company is defined in section ______________ of the companies Act.

1. 4(4)
2. 2(2)
3. 3(4)
4. 3(1)

Correct answer: (A)
4(4)

228. The other name of indoor management is called ______________

1. Golden rule
2. Constructive notice
3. Indoor rule
4. Tarquand rule

Correct answer: (D)
Tarquand rule

229. The statement in lieu of prospectus is drafted in accordance with the particulars set in part I of the ______________ the Act

1. Schedule I
2. Schedule IV
3. Schedule III
4. Schedule II

Correct answer: (D)
Schedule II

230. The right given to a particular class of shareholders are called the ______________

1. Special rights
2. General rights
3. Class right
4. None of the above

Correct answer: (D)
None of the above

Business Law

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