Business Law (MCQs) Set-4

Q.31. Shares can be freely transferable in ______

1. Public company
2. Private company
3. Registered company
4. Government company

Answer: (A) Public company

Q.32. If the Articles of a company conflict with the memorandum.

1. The articles shall prevail
2. The memorandum shall prevail
3. The directors will resolve the conflict
4. The court will resolve the conflict.

Answer: (B) The memorandum shall prevail

Q.33. Which Doctrine seeks to promote the company from the outsiders?

1. The doctrine of indoor management
2. The doctrine of Ultra virus
3. The doctrine of constructive notice
4. None of these

Answer: (C) The doctrine of constructive notice

Q.34. Sec.25 related to _____ companies

1. Holding
2. Licensed
3. Subsidiary
4. Existing

Answer: (B) Licensed

Q.35. When one company controls the management of another company, the format is called a ______ company

1. Existing
2. Holding
3. Subsidiary
4. Licensed

Answer: (C) Subsidiary

Q.36. A Public company May issue a prospectus called ______

1. Red herring Prospectus
2. Shelf prospectus
3. A bridged prospectus
4. Deemed prospectus

Answer: (A) Red herring Prospectus

Q.37. ______ is a person who holds the shares for the benefit persons

1. Trustee
2. Member
3. Shareholder
4. Company

Answer: (A) Trustee

Q.38. The history of the Indian Company Law began in the year of

1. 1850
2. 1908
3. 1913
4. 1956

Answer: (A) 1850

Q.39. ______ is compulsory for unlimited companies, private companies limited by guarantee.

1. Memorandum of association
2. Articles of Association
3. Prospectus
4. Statement in lieu

Answer: (B) Articles of Association

Q.40. The annual return should be filed by a company with the Registrar within the date of the annual general meeting of the company.

1. 40
2. 60
3. 30
4. 50

Answer: (B) 60