Chapter Exam

Chapter 26: Companies Act 2013 — Online MCQ Test

Q: Under the Companies Act, 2013, what is the minimum number of persons required to form a private company?

Answer: B. 2 — A private company must have at least 2 members. This is a basic requirement under company law.

Q: Who is called the person who conceives an idea of a company and takes steps to form it?

Answer: B. Promoter — A promoter is the person who plans, organises and takes necessary steps to incorporate a company.

Q: A company issues additional shares to existing shareholders in proportion to their existing holding. These are called:

Answer: A. Right shares — Right shares are first offered to existing shareholders based on their shareholding, usually at a predetermined price.

COMMERCE · CLASS 12th · Tamil Nadu State Board

Practice Chapter 26: Companies Act 2013 with a free chapter-wise online MCQ test for Tamil Nadu State Board CLASS 12th COMMERCE. This chapter covers: This chapter covers Indian company law corporate incorporation procedures promoter roles and share capital. Students learn about share types bonus shares rights shares share warran.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 26: Companies Act 2013 — Important Questions & Answers (FAQ)

Frequently asked questions from Tamil Nadu State Board CLASS 12th COMMERCE — Chapter 26: Companies Act 2013, with answers and explanations. These are sample questions; the exam has its own separate question set.

Under the Companies Act, 2013, what is the minimum number of persons required to form a private company?

A. 1
B. 2 ✓
C. 3
D. 7

Answer: B. 2
A private company must have at least 2 members. This is a basic requirement under company law.

Who is called the person who conceives an idea of a company and takes steps to form it?

A. Auditor
B. Promoter ✓
C. Liquidator
D. Debenture holder

Answer: B. Promoter
A promoter is the person who plans, organises and takes necessary steps to incorporate a company.

A company issues additional shares to existing shareholders in proportion to their existing holding. These are called:

A. Right shares ✓
B. Bonus shares
C. Sweat equity shares
D. Deferred shares

Answer: A. Right shares
Right shares are first offered to existing shareholders based on their shareholding, usually at a predetermined price.

Which of the following is the correct order of company incorporation steps?

A. Certificate of incorporation → Name approval → MOA filing
B. Name approval → Filing of documents → Certificate of incorporation ✓
C. MOA filing → Name approval → Commencement of business
D. Commencement of business → Certificate of incorporation → Name approval

Answer: B. Name approval → Filing of documents → Certificate of incorporation
A company first gets name approval, then files the required documents, and finally receives the certificate of incorporation.

Which of the following is the most appropriate explanation for share warrants?

A. They are documents issued to a company’s creditors
B. They are instruments that entitle the holder to the shares specified therein ✓
C. They are issued only for preference shares
D. They are used to pay dividend to shareholders

Answer: B. They are instruments that entitle the holder to the shares specified therein
A share warrant is a negotiable instrument that entitles the bearer to the shares mentioned in it. It is different from an ordinary share certificate.

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Chapter 27: Company Management