MGT401 Current Solved Online Quiz

In financial year 2010, a company XYZ (Pvt.) Ltd. was established with
registered office in Islamabad. According to Companies Ordinance 1984,
what will be the maximum number of shareholders of company XYZ (Pvt.)
Ltd.?

Select correct option:

20

50

15

:A Private limited company can be formed at least by:

Select correct option:

2 members

3 members

1 member

07 members

Which of the following is/are example(s) of development activities?

Select correct option:

The design of tools, jigs, moulds and dies involving new technology

The design, construction and testing of pre-production or pre-use prototypes and

models
The design, construction and operation of a pilot plant

All of the given options

Which of the following is an artificial person recognized by law?

Select correct option:

Limited company

Partnership

Sole-proprietorship

Trust

What is the minimum limitation for subscribers for holding shares of the
company?

Select correct option:

One share

Five shares

Ten shares

Hundred shares

In which situation, a company will be treated as related party?

Select correct option:

If it has the ability to control the other company

If it has significance influence over financial and operating matters of other
company

If it is associated with other company

All of the given options

In how many categories companies are classified according to Section 15 (2) of

Companies Ordinance 1984?

Select correct option:

Which one of the following is an appropriation by a limited liability company?

Select correct option:

Directors' salaries

Free Sample Distribution

Dividends

Loan interest
 Which organization does not necessarily required share capital at the time of
incorporation?

Select correct option:

Bank

University

Insurance Company

Private Limited Company

Which of the following entities is not profit oriented entity?

Sole propietorship

partnership

companies

foundations

Which of the following IAS deals with Revaluation of Assets?

IAS-16

IAS-07

IAS-01

IAS-23
Written down value of an asset = ----------------

Original cost – Accumulated depreciation

Original cost – Appreciation

Book value – Accumulated depreciation

Original cost – Salvage value

A Private limited company can be formed at least by:

2 members

3members

1 member

7 members

Which one of the following is(are) recorded under the Equity section of the
Balance Sheet?

Share Premium

Reserves

Accumulated Profit

All of the given options

Which of the following is (are) intangible resources for a company?

Software licensing

Royalty

Production rights

All of the given options

According to IAS-16, which of the following asset has unlimited life?

Building

Motor Vehicle

Machinery

Land

Which of the following represents the Qualifying Asset?

Inventory routinely manufactured

Asset ready for use

Manufacturing plants

None of the given options

Which of the following is recorded under Long Term Liabilities section of the
Balance Sheet?

Debentures

Creditors

Provision for Taxation

Dividend Payable

In which of the following situations a company operates beyond the scope of its
objectives enlisted in Memorandum of Association (MOA)?

Ultra Virus

Ultra Violence

Ultra Vires

Ultra Wires

Which of the following may consist of more than 20 persons in case of

partnership?

Firms of Lawyers

Firms of Doctors NOT CONFIRM

Firms of Associates
All of the given options

In which document the information about how to run the business is stated?

Memorandum of Association

Memorandum of Understanding

Articles of Association

Annual Report

How the significant influence of investing company can be observed?

As member of the Board of Directors (BODs) of the investee company

operating policy making process of the investee company

transaction between investor and investee companies

All of the given options

If ABC Co. acquires the production rights from XYZ Co. as part of its business
combination then at which value ABC will record the cost of acquiring the
production rights in its books of accounts at the time of acquisition?

fair value
book value

realization value

replacement value

Which of the following is original and planned investigation undertaken with the
prospect of gaining new scientific or technical knowledge and understanding?

Select correct option:

Research

Development

Audit

Accounting