Chapter 7 : Formation of a Company

1. Minimum number of members to form a private company is
(a) 2
(b) 3
(c) 5
(d) 7
(a) 2

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

3. Application of 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.
(b) Registrar of Companies

4. A proposed name of Company is 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
(d) in case of any of the above.

(d) in case of any of the above.

5. A prospectus is issued by
(a) A private company
(b) A public company seeking investment from public.
(c) A public enterprise
(d) A public company

(d) A public company

 

6. Stages in the formation of a public company are in the following manner
(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
► (c) Promotion, Incorporation, Capital Subscription, Commencement of Business

7. Preliminary Contracts are signed
(a) before the incorporation
(b) after incorporation but before capital subscription
(c) after incorporation but before commencement of business
(d) after commencement of business
(a) before the incorporation

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