Free MCQ’s Quiz for Class 11 Business Studies – Chapter 7 – Formation of a Company with Answers is prepared based on the latest CBSE Exam Pattern for the Academic Session. Students can solve NCERT based Class 11th Business Studies – ‘Formation of a Company’ Multiple Choice Questions with Answers to know their preparation level on the Success Roar Classes website.

Here, we have provided Free MCQ’s Quiz on Class 11 Business Studies – Chapter 7 – Formation of a Company. Formation of a Company explains the stages in a company’s development and also the steps that must be completed at each stage to provide a realistic sense of these characteristics. To be properly understood, procedures can be divided into 3 separate phases, (i) promotion, (ii) incorporation, and (iii) capital subscription.

To make you perfect in this topic – Formation of a Company, we are here with a set of MCQs Quiz that will help you in brushing up the understanding of the concepts.

Free MCQ’s on Formation of a Company.

Free MCQ’s on Formation of a Company

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#1. The Directors' powers, rights, salary, qualifications, and responsibilities are all described in detail in:-

Memorandum of Association

Memorandum of Association

Prospectus

Prospectus

Articles of Association

Articles of Association

None of the above

None of the above

#2. The face value of the shares is referred to as:-

Actual value of the shares

Actual value of the shares

The par value of the shares

The par value of the shares

Market value of the shares

Market value of the shares

Dividend value of the shares

Dividend value of the shares

#3. How many members are required to form a public company?

50

50

10

10

7

7

12

12

#4. An individual cannot hold a director position in over ___ public companies.

3

3

10

10

20

20

7

7

#5. Every company, whether private or public, must be incorporated.

True

True

False

False

#6. A public company planning a public offering may file a statement in place of a prospectus.

True

True

False

False

#7. After incorporation, a private company can begin operations.

True

True

False

False

#8. In a private corporation, state the minimum and the maximum number of members. There must be a minimum of two members and a maximum is _____.

50

50

100

100

20

20

7

7

#9. What are the minimum and the maximum number of members in a public company?

Minimum of seven members and maximum is unlimited.

Minimum of seven members and maximum is unlimited.

Minimum of two members and maximum is unlimited.

Minimum of two members and maximum is unlimited.

Minimum of seven members and maximum is twenty.

Minimum of seven members and maximum is twenty.

Minimum of seven members and maximum is fifty.

Minimum of seven members and maximum is fifty.

#10. Powers, rights, salary, qualifications, and directors responsibilities are all described in detail in

Memorandum of Association

Memorandum of Association

Article of Association

Article of Association

Prospectus

Prospectus

None of the above

None of the above

finish