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B Com Exam  >  B Com Test  >  Company Law  >  Test: Company Law- 2 - B Com MCQ

Company Law- 2 - Free MCQ Practice Test with solutions, B Com Law


MCQ Practice Test & Solutions: Test: Company Law- 2 (10 Questions)

You can prepare effectively for B Com Company Law with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Company Law- 2". These 10 questions have been designed by the experts with the latest curriculum of B Com 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 10 minutes
  • - Number of Questions: 10

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Test: Company Law- 2 - Question 1
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What is the primary characteristic that distinguishes a chartered company from other types of companies?

Detailed Solution: Question 1

Chartered companies are incorporated under a special charter granted by a monarch. This charter defines the company's powers and nature of business. An example of a chartered company is The East India Company.

Test: Company Law- 2 - Question 2
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Which type of company derives its powers from a Special Act passed by the Central or State legislature?

Detailed Solution: Question 2

Statutory companies are incorporated by a Special Act passed by the legislature. They derive their powers from the Acts constituting them and are formed to meet specific social needs.

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Test: Company Law- 2 - Question 3
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What is the primary difference between a company limited by shares and a company limited by guarantee?

Detailed Solution: Question 3

In a company limited by shares, the liability of each member is limited to the unpaid amount on their shares. In a company limited by guarantee, members promise to pay a fixed amount in the event of liquidation, and their liability is limited to this guarantee amount.

Test: Company Law- 2 - Question 4
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How many members are required to form a private company according to the Indian Companies Act, 1956?

Detailed Solution: Question 4

According to the Indian Companies Act, 1956, a private company must have a minimum of two members to be formed.

Test: Company Law- 2 - Question 5
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What is the main distinction between the managerial remuneration of a public company and a private company?

Detailed Solution: Question 5

In a public company, the total managerial remuneration cannot exceed 11% of net profits. There is no such restriction in a private company.

Test: Company Law- 2 - Question 6
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What is the main feature that distinguishes a public company from a private company?

Detailed Solution: Question 6

A key distinction is that a public company can invite the general public to subscribe for its shares, while a private company is restricted from doing so.

Test: Company Law- 2 - Question 7
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Which historical text provides evidence of corporate organizations in ancient India?

Detailed Solution: Question 7

The Arthashastra, a text from ancient India, provides evidence of corporate organizations in the form of guilds and trade partnerships, showcasing the presence of corporate principles in early commerce.

Test: Company Law- 2 - Question 8
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What type of corporate organization was referred to as 'Sreni' in ancient India?

Detailed Solution: Question 8

'Sreni' refers to guilds in ancient India. These were corporate organizations of people following the same trade, art, or craft, similar to modern-day associations.

Test: Company Law- 2 - Question 9
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In ancient Indian corporate organizations, what was the purpose of the institution called 'Sreni'?

Detailed Solution: Question 9

The 'Sreni' played a role in engaging in long-distance travel and trade, indicating the early use of partnership-like forms for business activities.

Test: Company Law- 2 - Question 10
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How did ancient Indian partnerships regulate the division of assets and liabilities among partners?

Detailed Solution: Question 10

Ancient Indian partnerships divided assets and liabilities based on the relative contributions of partners, considering their skill, labor, and capital investments. This promoted fairness and accountability in the partnership.

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About this B Com Practice Test

This test contains 10 MCQs on Company Law- 2 with detailed solutions for each question. It is part of the Company Law course on EduRev, designed to align with the current B Com syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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If you found this Company Law- 2 MCQ Test helpful, you can further enhance your B Com preparation with in-depth courses on EduRev, for all the subjects and topics available in Company Law course. The course offers:
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