Chapter 6: Joint Stock Company — Online MCQ Test
COMMERCE · CLASS 11th · Tamil Nadu State Board
Practice Chapter 6: Joint Stock Company with a free chapter-wise online MCQ test.
This chapter covers: Focusing on corporate structures this chapter details company features classifications and formation steps. Students examine key corporate documents including Memorandum of Associa....
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Chapter 6: Joint Stock Company — Important Questions & Answers
Which document is considered the 'Charter' or 'Constitution' of a Joint Stock Company?
- A. Prospectus
- B. Memorandum of Association
- C. Articles of Association
- D. Certificate of Incorporation
Answer: B. Memorandum of Association
The Memorandum of Association defines the fundamental conditions and scope of the company's activities.
The Memorandum of Association defines the fundamental conditions and scope of the company's activities.
What is the minimum number of members required to form a Public Limited Company?
- A. 2
- B. 5
- C. 7
- D. 50
Answer: C. 7
According to the Companies Act, a public company requires at least 7 members for its formation.
According to the Companies Act, a public company requires at least 7 members for its formation.
Which document contains the rules and regulations for the internal management of a company?
- A. Memorandum of Association
- B. Prospectus
- C. Articles of Association
- D. Certificate of Commencement
Answer: C. Articles of Association
The Articles of Association define the internal management policies and governance of the company.
The Articles of Association define the internal management policies and governance of the company.
If a company acts beyond the powers defined in its Memorandum of Association, such acts are called:
- A. Ultra Vires
- B. Intra Vires
- C. Inter Vires
- D. Ex Post Facto
Answer: A. Ultra Vires
Acts performed by a company that fall outside the scope of its object clause are termed Ultra Vires and are void.
Acts performed by a company that fall outside the scope of its object clause are termed Ultra Vires and are void.
A company is formed by seven people who all pass away in an accident. What happens to the company?
- A. The company is dissolved immediately
- B. The company continues to exist
- C. The legal heirs automatically become directors
- D. The government takes over the assets
Answer: B. The company continues to exist
Due to perpetual succession, the legal existence of a company remains unaffected by the death of its shareholders.
Due to perpetual succession, the legal existence of a company remains unaffected by the death of its shareholders.