Chapter Exam

Chapter 6: Joint Stock Company — Online MCQ Test

Q: Which document is considered the 'Charter' or 'Constitution' of a Joint Stock Company?

Answer: B. Memorandum of Association — The Memorandum of Association defines the fundamental conditions and scope of the company's activities.

Q: What is the minimum number of members required to form a Public Limited Company?

Answer: C. 7 — According to the Companies Act, a public company requires at least 7 members for its formation.

Q: Which document contains the rules and regulations for the internal management of a company?

Answer: C. Articles of Association — The Articles of Association define the internal management policies and governance of the company.

Q: If a company acts beyond the powers defined in its Memorandum of Association, such acts are called:

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.

Q: A company is formed by seven people who all pass away in an accident. What happens to the company?

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.

COMMERCE · CLASS 11th · Tamil Nadu State Board

Practice Chapter 6: Joint Stock Company with a free chapter-wise online MCQ test for Tamil Nadu State Board CLASS 11th COMMERCE. 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.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 6: Joint Stock Company — Important Questions & Answers (FAQ)

Frequently asked questions from Tamil Nadu State Board CLASS 11th COMMERCE — Chapter 6: Joint Stock Company, with answers and explanations. These are sample questions; the exam has its own separate question set.

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.

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.

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.

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.

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.

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