Class 11 Business Studies Chapter 7 Formation of a Company MCQ Questions with Answer

Formation of a Company Class 11 MCQ is one of the best strategies to prepare for the CBSE Class 11 Board exam. If you want to complete a grasp concept or work on one’s score, there is no method except constant practice. Students can improve their speed and accuracy by doing more Formation of a Company class 11 MCQ which will help them all through their board test.

Formation of a Company Class 11 MCQ Questions with Answer

Class 11 Business Studies MCQ with answers are given here to Chapter 7 Formation of a Company. These MCQs are based on the latest CBSE board syllabus and relate to the latest Class 11 Business Studies syllabus. By Solving these Class 11 MCQs, you will be able to analyze all of the concepts quickly in the Chapter and get ready for the Class 11 Annual exam.

Learn Formation of a Company Class 11 MCQ with answers pdf free download according to the latest CBSE and NCERT syllabus. Students should prepare for the examination by solving CBSE Class 11 Formation of a Company MCQ with answers given below.

Question 1 : A company is known as the _______company of another company if it has control over that other company.
(a) Subsidiary
(b) Holding
(c) Controlling
(d) Statutory

Answer :  B

Question 2 : A prospectus is issued by
(a) A private company
(b) A public company seeking investment from public
(c) A public enterprise
(d) A public company

Answer :  B

Question 3 : Stages in the formation of a public company are in the following order
(a) Promotion, Commencement of Business, Incorporation, Capital Subscription
(b) Incorporation, Capital Subscription. Commencement of Business, Promotion
(c) Promotion, Incorporation, Capital Subscription, Commencement of Business
(d) Capital Subscription, Promotion, Incorporation, Commencement of Business

Answer :  C

Question 4 : 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
(a) 60
(b) 45
(c) 30
(d) 7

Answer :  C

Question 5 : Par value of shares means the __________ value of the shares
(a) Actual
(b) face
(c) Market
(d) dividend

Question 6 : Minimum number of members to form a public company is
(a) 5
(b) 7
(c) 12
(d) 21

Answer :  B

Question 7 : The application for registration of a company should be presented to the _______________ of the state appointed under Companies Act 1956
(a) Controller
(b) Registration officer
(c) Governor
(d) Registrar 

Answer :  D

Question 8 : “Men may come and men may go but the company exist”- this explains which characteristics of the company as per companies Act 1956
(a) Separate legal entity
(b) Perpetual Succession
(c) Capacity to sue
(d) None of the above

Answer :  B

Question 9 : A prospectus is issued by
(a) A private company
(b) A public company seeking investment from public
(c) A public enterprise
(d) A public company

Answer :  B

Question 10 : Application for approval of name of a company is to be made to
(a) SEBI
(b) Registrar of Companies
(c) Government of India
(d) Government of the State in which Company is to be registered

Question 11 : For example Par value is Rs10 and it is issued at Rs15 then Rs5 is the ___________ amount
(a) Profit
(b) Market value
(c) dividend
(d) premium

Answer :  D

Question 12 : Statement in lieu of prospectus can be filed by
(a) Public company
(b) Private company
(c) Unregistered company
(d) None of the above

Answer :  A

Question 13 : The articles of association need to be signed by
(a) All proposed directors
(b) Registrar
(c) Subscribers of memorandum
(d) None of the above

Answer :  C

Question 14 : A private company means a company which has a minimum paid up capital of Rs.———
(a) 100,000
(b) 500,000
(c) 5,000,000
(d) none of the above

Answer :  B

Whoever needs to take the CBSE Class 11 Board Exam should look at this MCQ. To the Students who will show up in CBSE Class 11 Business Studies Board Exams, It is suggested to practice more and more questions. Aside from the sample paper you more likely had solved. These Formation of a Company Class 11 MCQ are ready by the subject specialists themselves.

Question 15 : Which of the following clause of Memorandum of Association cannot be altered
(a) Name
(b) Object
(c) Situation
(d) Liability

Question 16 : A Government Company means any company in which not less than 51% of the paid-up share capital is held by
(a) Central Government
(b) State government
(c) Both a & b
(d) Neither a nor b

Answer :  C

Question 17 : The certificate of capital will be issued by
(a) Registrar of Companies Act
(b) Controller of companies Act
(c) Registrar of capital issues
(d) Controller of capital issues

Answer :  D

Question 18 : _________ capital means the sum mentioned in the capital clause of Memorandum of Association
(a) Full capital
(b) Maximum capital
(c) share capital
(d) Nominal Capital

Answer :  D

Question 19 : Powers, rights, remuneration, qualification and duties of directors are discussed clearly in
(a) Memorandum of Association
(b) Articles of Association
(c) Prospectus
(d) None of the above

Answer :  B

Question 20 : Preliminary Contracts are
(a) binding on the Company
(b) binding on the Company, if ratified after incorporation
(c) binding on the Company, after incorporation
(d) not binding on the Company

Question 21 : A private company means a company which has a minimum paid up capital of Rs.————-
(a) 1,00,000
(b) 5,00,000
(c) 50,00,000
(d) None of the above

Answer :  B

Question 22 : Section 12 of Companies Act 1956, deals with
(a) Incorporation
(b) Share capital
(c) Number of Directors
(d) Shareholders

Answer :  A

Question 23 : _____ share capital has priority both in repayment of dividend as well as capital.
(a) Equity
(b) non preference
(c) Preference
(d) all of the above

Answer :  C

Question 24 : The liability of the members of the company can be limited by
(a) Share
(b) Guarantee
(c) Both a & b
(d) Neither a nor b

Answer :  C

Question 25 : Preliminary Contracts are
(a) binding on the Company
(b) binding on the Company, if ratified after incorporation
(c) binding on the Company, after incorporation
(d) not binding on the Company

Answer :  D

Question 26 : The application for registration of a company should be presented to the _______________ of the state appointed under Companies Act 1956
(a) Controller
(b) Registrar
(c) Governor
(d) Registration officer

Answer :  B

Question 27 : _______________ capital means the sum mentioned in the capital clause of Memorandum of Association
(a) Full capital
(b) Maximum capital
(c) share capital
(d) Nominal Capital

Answer :  D

Question 28 : The Prospectus must be issued to the public within ______________ days of its date.
(a) 30
(b) 60
(c) 90
(d) 100

You can easily get good marks If you study with the help of Class 11 Formation of a Company MCQ. We trust that information provided is useful for you. NCERT MCQ Questions for Class 11 Formation of a Company PDF Free Download would without a doubt create positive results. 

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