Tổng hợp câu hỏi trắc nghiệm môn Corporation Law (có đáp án chi tiết) năm 2022

TỔNG HỢP CÂU HỎI TRẮC NGHIỆM MÔN CORPORATION LAW (CÓ ĐÁP ÁN CHI TIẾT) NĂM 2022 Question 1 Which one of the following is an unincorporated organisation? a) General partnership b) Limited liability part.Question 1 Which one of the following is an unincorporated organisation? a) General partnership. b) Limited liability partnership. c) Public limited company. d) Private limited company. Question 2 The maximum number of persons who are legally allowed to operate in a partnership is: a) 2 b) 20 c) There is no legal limit d) 100 Question 3 A partner who is entitled to a share of the profits from a partnership is known as: a) A salaried partner. b) A managing partner. c) An equity partner. d) A limited liability partner. Question 4 The Partnership Act 1890 section 24 sets out rights of partners (in default of their own agreement). Which one of the following is not included in section 24? a) The right to take part in the management of the business. b) The right to a salary. c) The right to share equally in the capital and profits of the business. d) The right to be indemnified by the firm for any liabilities incurred or payments made in the course of the firms business. Question 5 Limited liability partnerships were introduced by which Act of Parliament? a) Limited Partnership Act 1907. b) Limited Liability Partnership Act 2000. c) Partnership Act 2000. d) Companies Act 2006. Question 6 Which one of the following statements about limited liability partnerships (LLPs) is incorrect? a) An LLP has a legal personality separate from that of its members. b) The liability of each partner in an LLP is limited. c) Members of an LLP are taxed as partners. d) A limited company can convert to an LLP. Question 7 Which of the following is not a method of creating a company? a) A written agreement made by the directors. b) Registration under the Companies Act 2006. c) Act of Parliament. d) Grant of Royal Charter. Question 8 A Community Interest Company (CIC) can be set up as which of the following? a) A private company limited by guarantee only. b) A private company limited by shares or a private company limited by guarantee only. c) A private or public company limited by shares or a private company limited by guarantee. d) None of the above, it is a type of partnership. Question 9 Sparkle Ltd is a private limited company limited by shares. It has one director. How many shareholders does the law require it to maintain? a) One provided it is a different person from the director. b) Five. c) Two. d) One which can be the same person as the director. Question 10 An organisation running a business has the following attributes: the assets belong to the organisation, it can create a floating charge over its assets, change in membership does not alter its existence, and members cannot transfer their interests to others. What type of organisation is it? a) A private limited company b) A limited liability partnership c) A general partnerships d) A public limited company Question 1 Persons who take the procedural steps to set up a company and who make business preparations for the company are known as: a) Directors. b) Shareholders. c) Registrars. d) Promoters. Question 2 Joe and Jamel wish to form a new company, which of the following documents must be lodged with the Registrar of Companies? 1) Memorandum of Association. 2) An application for registration. 3) A statement of compliance. 4) The appropriate fee. a) 1, 2 and 4 b) 1,2,3, and 4 c) 1,3, and 4 d) 2 and 4 Question 3 Under the Companies Act 2006 the document that states the subscribers wish to form a company and have agreed to become members of that company is called: a) The Company Articles. b) The Statement of Compliance. c) The Memorandum of Association. d) The Company Guarantee. Question 4 What is the internet registry for .uk domain names? a) Companies House. b) Nominet UK. c) Dot.com UK. d) Internet Registration UK. Question 5 Companies set up under the provisions of the Companies Act 2006 have one major constitutional document called: a) The Company Constitution. b) The Memorandum of Association. c) The Articles of Association. d) The Object Clause. Question 6 Will a court permit an alteration of a companys articles to be enforced if the alteration is to give the company the power to expel shareholders? a) Yes, there are no restrictions on expelling shareholders. b) Yes, provided there is a good reason and it is for the benefit of the company as a whole. c) No, the Companys Act 2006 does not permit a shareholder to be expelled from a company. d) No, the common law does not permit a shareholder to be expelled from a company. Question 7 Which one of the following statements relating to debentures is incorrect? a) Debenture stock is transferable. b) A company may not purchase its own debentures. c) A debenture holder is a creditor of the company. d) A debenture is the written document issued by a company setting out the terms of a loan. Question 8 Which one of the following is not a right of a shareholder? a) To receive a dividend declared by the company b) To attend and vote a meetings c) To receive the companys accounts d) To manage company affairs Question 9 Shares issued with special rights attached to them are known as: a) Ordinary shares b) Preference shares c) Rightsshares d) Debenture shares Question 10 What are redeemable shares? a) Shares that cannot be transferred on the stock market. b) Shares kept by a company to be sold at a later date. c) Shares which when issued carry a right by the company to buy them back. d) Shares that carry rights in preference to other shares.

Question 1

Which one of the following is an unincorporated organisation?

a) General partnership

b) Limited liability partnership

c) Public limited company

d) Private limited company

a) The right to take part in the management of the business

b) The right to a salary

c) The right to share equally in the capital and profits of the business

d) The right to be indemnified by the firm for any liabilities incurred or

payments made in the course of the firm's business

Question 5

Limited liability partnerships were introduced by which Act of Parliament?

a) Limited Partnership Act 1907

b) Limited Liability Partnership Act 2000

c) Members of an LLP are taxed as partners

d) A limited company can convert to an LLP

Question 7

Which of the following is not a method of creating a company?

a) A written agreement made by the directors

b) Registration under the Companies Act 2006

c) Act of Parliament

d) Grant of Royal Charter

Question 8

A Community Interest Company (CIC) can be set up as which of the following?

a) A private company limited by guarantee only

b) A private company limited by shares or a private company limited by

a) A private limited company

b) A limited liability partnership

c) Registrars

d) Promoters

Question 2

Joe and Jamel wish to form a new company, which of the following documents must

be lodged with the Registrar of Companies?

a) The Company Articles

b) The Statement of Compliance

c) The Memorandum of Association

d) The Company Guarantee

Question 5

Companies set up under the provisions of the Companies Act 2006 have one major constitutional document called:

a) The Company Constitution

b) The Memorandum of Association

c) The Articles of Association

d) The Object Clause

Question 6

Will a court permit an alteration of a company's articles to be enforced if the alteration

is to give the company the power to expel shareholders?

a) Yes, there are no restrictions on expelling shareholders

b) Yes, provided there is a good reason and it is for the benefit of the

company as a whole

c) No, the Company's Act 2006 does not permit a shareholder to be

expelled from a company

d) No, the common law does not permit a shareholder to be expelled from

a company

Question 7

Which one of the following statements relating to debentures is incorrect?

a) Debenture stock is transferable

b) A company may not purchase its own debentures

c) A debenture holder is a creditor of the company

d) A debenture is the written document issued by a company setting out

the terms of a loan

Question 8

Which one of the following is not a right of a shareholder?

a) To receive a dividend declared by the company

b) To attend and vote a meetings

c) To receive the company's accounts

d) To manage company affairs

What are redeemable shares?

a) Shares that cannot be transferred on the stock market

b) Shares kept by a company to be sold at a later date

c) Shares which when issued carry a right by the company to buy them

back

d) Shares that carry rights in preference to other shares

Question 1

Which one of the following statements is incorrect?

a) The statutory minimum age of a director is 18

b) There is no statutory maximum age for directors

c) A public limited company must have at least two directors

d) There are no legal qualifications necessary for being a director Question 2

What is the legal minimum number of directors for a private limited company?

What is a shadow director?

a) A director who does not attend Board meetings

b) A person who is not appointed as a director but whose directions or

instructions the directors of a company follow

c) A person appointed to attend Board meetings and vote in place of a

c) Insolvency Act 1986

d) Company Directors Disqualification Act 1986

Question 6

Which one of the following statements is correct?

a) A company can never have unrestricted objects

b) Where a director acts without authority from the Board of Directors, all

transactions entered into with third parties will be void

c) Where a director acts outside or beyond the powers given to him by the

company, all transactions entered into with third parties acting in good faith will

be voidable by the company

d) Where a director acts outside or beyond the powers given to him by the

company, all transactions entered into with third parties acting in good faith are deemed to be free of any limitations under the company's constitution

Question 7

The Companies Act 2006 ss171-177 imposes various duties on directors Which of the following is not imposed by the Act?

a) To promote the success of the company

b) To attend the minimum of two Board meetings annually

c) To exercise independent judgment

d) To exercise reasonable skill care and diligence

c) You need no qualifications

d) Have been a secretary of a public company for at least three years out

of the last five

Question 10

Which one of the following statements is not correct?

a) It is a criminal offence for anyone to knowingly or recklessly give an

auditor misleading, false or deceptive information

b) An auditor has the duty to audit a company's accounts, and to report to

the shareholders on whether the accounts give a true and fair view of the financial position of the company and have been properly prepared in

accordance with the Companies Act 2006

c) The auditor cannot be an officer or employee of the company or in

partnership with someone who is an officer or employee of the company

d) An Auditor cannot be removed before the expiry of his term of office Question 1

Decisions passed by shareholders are known as:

a) Resolutions

b) Provisions

c) Articles

d) Memorandums

Question 2

Which one of the following statements is incorrect?

a) Notice of meetings must be given to every member and every director b) All companies must hold annual general meetings

c) Directors and secretaries of public companies that fail to hold an annual

general meeting are liable to a fine

d) The directors of a company can be required to hold a general meeting

by the company's auditors if the auditors intend to resign

Question 3

Which of the following meetings are all shareholders invited to?

1) annual general meeting

What is meant by voting by poll?

a) Where each shareholder or his proxy present at the meeting, has one

vote irrespective of the number of shares they hold

b) Where each shareholder has the right to vote in writing

c) Where the chairman of the meeting casts the final vote

d) Where each shareholder or their proxies present at the meeting use as

many votes as their shareholding allows them

Question 5

What percentage of shareholders is needed to pass special resolution?

a) It must be unanimous

b) Not less than 90%

c) Not less than 75%

d) More than 50%

Question 6

Which one of the following statements is correct?

a) Where a written resolution is proposed a copy of the resolution must

always be sent by post to every shareholder

b) Written resolutions can only be proposed by directors

c) Written resolution can only be proposed by shareholders

d) Public companies cannot pass written resolutions

Question 7

What is a derivative claim?

a) A claim brought by a company against one of its directors for

negligence., default or breach of duty or breach of trust

b) A claim brought by minority shareholders on the grounds that they have

been unfairly treated by the majority of shareholders

c) Where a shareholder, in place of the company, brings a claim against a

director of the company for negligence, default or breach of duty or breach of trust

d) A petition to have the company wound up

Question 8

How is voluntary liquidation of a company commenced?

a) By a Court Order

b) By an ordinary resolution of shareholders

c) By a special resolution of shareholders

d) By a decision of the Board of Directors

Question 9

Where an individual uses price-sensitive information, which has not been made public, relating to the present or future value of company securities for his own profit it is called:

A at its own initiative

B on the application of least 100 members of the company

C on the application of members holding at least 10% voting rights

D any of the above

ANSWER: D

5 A director’s election takes place in a general meeting through a separated Resolution passed

by a _ majority

C a special resolution and union governments approval

D a special resolution and company law board approval

ANSWER: C

9 A share certificate once issued by the company binds it in two ways, namely by estoppel as

to title and _

10 Share capital of a company means

A equity share capital

B preference share capital

C equity and preference share capital

D equity and preference share capital and debentures

ANSWER: C

11 A shareholder in a company _

A can be its debentureholder

B cannot be its debentureholder

C alone can become its debentureholder

D must also become its debentureholder within a year of being a shareholder ANSWER: A

12 The dividend on preference capital is paid _

A whenever there are profits

B only if there are profits

C even if there are no profits

D only when the directors recommend it

Ques For every special resolution passed the form attached should be

(a) Form no.32

(d) both (a) & (b)

Ques In case of alternation of AOA to deletion or insertion of provisions defining

private company shall be passed by resolution through postal ballot

Ques Is a document showing title

(a) Share certificate

(b) Share warrant

|(c) Both (a) & ((b)

(d) None of the above

Ans (c)

Ques Extension of time limit is possible only in which of the following?

(a) Shares

(b) Debentures

(c) Both (a) & (b)

(d) None of the above

Ans (b)

Ques years of imprisonment will be imposed in case of issue of prospectus

with untrue statements

Ques The liability of members if company is limited by shares

(a) Unpaid value of shares

Ques Name of the member is struck off from the register in case of

(a) Issue of share certificate

(b) Share warrant

(c) Forfeiture

(d) None of the above

Ans (b)

Ques If the company has not received permission for listing from stock exchange and

repayment of amount delayed by more than 8 days the minimum interest should be paid is

(c) Both (a) & (b)

(d) None of the above

(b) No

Ans (a)

Ques X, is a director of X Company and X is also a director of Y Company this

means X Co and Y Co both are same

Related: Compound interest questions

Ques Can a Minor be a subscriber

Ques Central Government permission is required in case of _ conversion

(a) Private to public

Ques In case minimum subscription is not received and refund is delayed % of

interest to be paid by the company

(a) 5

(b) 6

(c) 7

(d) 8

Ans (b)

Related: Trigonometry questions

Ques Paying back of capital is called

Ques Proxies cannot vote on _

(a) Show of hands

(b) Poll

(c) Both (a) & (b)

(d) None of the above

Related: Mensuration Questions and Answers Ques If the company failed to refund application money with in 130 days from the

Ques X Company is holding majority of shares in Y company Will X and Y

companies will be the same

Ques Contribution shall be made by the employer is of basic wages

and D.A allowance and retaining

Ques _ % of shares should be held by a company in another company so as to

Ques In case of Non -Profit making Companies books of accounts are required to be

preserved for _ years

Government and 55% held by people then that Company is

(a) Government Company

(b) Private Company

(c) Public Company

(d) None of these

Ans (c)

Ques XYZ Co, is having 15% share capital held by X Company and 50% held by

Central Government and 10% held by State Government and 25% held by other

people then that company will be

(a) Government Company

Ques XYZ Co is a holding of XZ Pvt Company XZ Co issued deferred shares The

issue is valid or void

Ques are the shares issued by the company to it employees or directors for

consideration other than cash

(c) Both (a) & (b)

(d) None of the above

Related: Food trivia questions

Ques Signature of memorandum and articles should be done by number of

persons in case of public company

Ques In the MOA there are 6 classes We can alter all clauses expect one clause

What is that clause?

(a) Objects clause