1.

A company is known as the another company if it has control over that

other company.
Answer : Holding

2. A copy of the must accompany each from of application for shares

offered to the public.
Answer : Prospectus

3. A Government Company means any company in which not less than 51%
of the paid-up share capital is held by
Answer: Both a and b

4. A person cannot hold directorship in more than public companies

Answer: 03

5. A private company means a company which has a minimum paid up

capital of Rs.---
Answer: 500,000

6. A private company means a company which has a minimum paid up

capital of Rs.—
Answer: 100,000

7. A proposed name of Company is considered undesirable if

Answer: in case of any of the above
8. A prospectus is issued by
Answer: A public company seeking investment from public

9. A statement of nominal capital must be given at the time of incorporation by

the company
when the share capital is less than
Answer: 25 lakh
10. Among the following which documents are not mandatory to be submitted
to the registrar
along with incorporation application by a private company.
Answer: Address of registered office & undertaking
11. Application for approval of name of a company is to be made to
Answer: Rigisterar of Companies
12. "Men may come and men may go but the company exist"- this explains
which characteristics of the company as per companies Act 1956
Answer: perpetual Sucession
13. For example Par value is Rs10 and it is issued at Rs15 then Rs5 is the
amount
Answer: Premium
14. If a company is instructed to change its name which resembles the name of
an existing company then the company can change the name by
Answer: Passing an ordinary resolution

15. If the company can make arrangements for raising the capital privately so
that pubic appeal unnecessary, the company is required to prepare a
Answer: Statement in lieu of prospectus
16. If the proposed nominal capital is more than 25 lakh at the time of
incorporation then the
company needs to submit along with the application
Answer: Certificate of Capital
17. Preliminary Contracts are
Answer: not binding on the Company
18. Minimum number of members required to apply for incorporation
certificate in a public
Itd company is
Answer: 7
19. Minimum number of members to form a private company is
Answer: 2
20. Minimum number of members to form a public company is
Answer: 7
21. Number of clauses in Memorandum of Association is
Answer: 6
22. Number of documents to be submitted, by a public Itd company, to the
registrar while
applying for incorporation of the company is
Answer: 7
23. Par value of shares means the value of the shares
Answer: Dividend
24. Powers, rights, remuneration, qualification and duties of directors are
discussed clearly in
Answer: Articles of association
25. Preliminary Contracts are signed
Answer: Before the In corporation
26. Private company prohibits any invitation or acceptance of deposits from
persons other
than its company of
Answer: Member
27. Section 12 of Companies Act 1956, deals with
Answer: Incorporation
28. Stages in the formation of a public company are in the following order
Promotion,incorporation,Capital,Subscription,Commencement of business
29. The address of the registered office of the company must be notified to the
registrar
Within days of registration, if it is not done at the time of incorporation
Answer :30
30. The application for registration of a company should be presented to the
registrar of the
state in which the of the company is to be situated
Answer: Business office
31. The application for registration of a company should be presented to the
Of the state appointed under Companies Act 1956
Answer:Rigisterar
32. The articles of association needs to be signed by
Answer: Subscriber of memorandum
33. The certificate of capital will be issued by
Answer: Controller of Capital issues
34. The company needs to obtain prior permision from central government
when it changes the
address of its registered office from
Answer: one state to another
35. The company will be considered as separate person and different from its
members from
the date (when the)
Answer: mentioned in certificate
36. The dividend payable to Share holders is payable on fixed figure or percent
Answer: Preference
37. The liability of the members of the company can be limited by
Answer: Both a & b
38. The Prospectus must be issued to the public within days of its date
Answer: 90

39. The shares of a company can be freely transferable

Answer: Public ltd

40. When the registered office of a company is changed within a city then it
has to be
intimated to the registrar within days of such change
Answer: 30

41. Which of the following clause of Memorandum of Association cannot be

altered
Answer: object
42. Which of the following is not a clause of memorandum of association
Answer:Directors
43. means the total amount of called up share capital which is actually paid to
the company
by the members
Answer: Paid up capital
44. are the company created by special act of the legislature
Answer: Statutory
45.
share capital has priority both in repayment of dividend as well as capital.
Answer: Preference
46: cannot give invitation to the public to
subscribe for any shares in or debentures of
the company
Answer: Private company
47.
means the total amount of called up capital on the shares issued and
subscribed by
the shareholders on capital account.
Answer: Called up capital
48.
capital means the sum mentioned in the capital clause of Memorandum of
Association
Answer: Nominal Capital
Question 1

Debenture holders are

A) Debtors of the Company
B) Creditors of the Company
C) External users
D) Owners of the Company
Answer B
Question 2
Debentures indicate the
A) Short-term Borrowings of a Company
B) Directors’ shares in a company
C) The Investment of Equity-Shareholders
(D)Long-term Borrowings of a CompanyAnswer D
Question 3
In debenture, interest payable is

A) Transferred to general reserve

B) Transferred to falling fund investment account
C) Charged against the firm’s profits
D) Appropriation of the company’s profits

Answer C
Question 4
The owner of the debenture is qualified for
A) Fixed-rate interest
B) Company’s voting rights
C) Firm’s Profits share
D) Fixed dividend
Answer A
Question 5

When a company is liquidated, the debenture holders have a prior right for :
A) Principal amount
B) Interest
C) Both (a)and (b)
D) None of these
Answer C
Question 6
Which of the below-mentioned statement is not true?

A) The issue price and redemption value of debentures cannot differ

B) Interest on debenture is a charge against profits
C) It is common to prefix debentures with the agreed interest rate
D) A debenture is a kind of public borrowing

Answer A
Question 7
Point out the false statements
A) A firm can buy its own debentures and shares
A business can issue debentures with voting rights
An organisation can issue redeemable debentures.
Answer C
Question 8

Of the following which one is not a characteristic of Bearer Debentures

A) They are transferable by mere delivery.
B) The interest on it is paid to the holder irrespective of identity.
C) They are treated as negotiable instruments.
D) Their transfer requires a deed of transfer
Answer D
Question 9
Debenture Application A/c is in the form of

A) Current Account
B) Nominal Account
C) Personal Account
D) Real Account
Answer C
Question 10

The form of a discount on issue of Debentures is in the nature of

A) Deferred Revenue Expenditure
B) Capital loss
C) Revenue loss
D) None of the above
Answer B