What is the primary characteristic of a company?

A group of individuals working together for personal gain.

A group of individuals associated for a common objective.

A sole proprietorship business entity.

An organization focused on charitable activities.

What is the key difference between a registered company and an unregistered company?

A registered company has limited liability for its members, while an unregistered company has unlimited liability.

A registered company is formed and registered under the Companies Act, while an unregistered company is not legally recognized.

A registered company has a larger number of members than an unregistered company.

A registered company is always a public company, while an unregistered company is always a private company.

What defines a holding company in relation to another company?

It holds more than 25% of the paid-up capital of the other company.

It has control over the other company's management and affairs.

It owns more than 50% of the shares of the other company.

It is a subsidiary of the other company.

What is the main distinction between Indian companies and foreign companies?

Foreign companies can have a higher number of members compared to Indian companies.

Foreign companies are not required to register under the Companies Act.

Indian companies are formed under the Companies Act and have their registered office in India, while foreign companies are incorporated outside India and have a place of business in India.

Foreign companies are always subsidiaries of Indian companies.

What are the primary characteristics of a private company?

It can have unlimited liability for its members.

It must have at least seven members.

It can have a maximum of fifty members.

It is required to issue a prospectus for public subscription.

What makes a holding company different from a subsidiary company?

A holding company has control over a subsidiary company, while a subsidiary company controls the holding company.

A holding company is always a government company, while a subsidiary company is not.

A holding company has fewer members than a subsidiary company.

A holding company is controlled by a government entity, while a subsidiary company is privately owned.

What is the key characteristic of a foreign company operating in India?

It is registered under the Indian Companies Act.

It must have a minimum of seven members.

It has an established place of business in India.

It must be a subsidiary of an Indian company.

Company Law- 3 Free MCQ Practice Test with Solutions

	Company Law 81 docs\|44 tests

	Company Law 81 docs\|44 tests

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