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

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


MCQ Practice Test & Solutions: Test: Formation of Company- 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: Formation of Company- 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: Formation of Company- 2 - Question 1
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According to Section 4(3) of the Companies Act, 2013, when can a company use a word that gives the impression of a connection with the Central Government?

Detailed Solution: Question 1

Section 4(3) states that a company cannot use a word suggesting a connection with the Central Government without the previous approval of the Central Government.

Test: Formation of Company- 2 - Question 2
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What is the primary purpose of filing an application for the reservation of a company name?

Detailed Solution: Question 2

Filing an application for the reservation of a company name allows the Registrar to reserve a name for a proposed company. This process ensures that the proposed name is available and not already in use by other companies.

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Test: Formation of Company- 2 - Question 3
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According to Section 4(2) of the Companies Act, 2013, what is NOT a condition for a company's name?

Detailed Solution: Question 3

According to Section 4(2), the name of a company should not be identical or too closely resembling an existing company's name. It should not constitute an offense or be undesirable in the opinion of the Central Government. The State Government's approval is not a condition for the name.

Test: Formation of Company- 2 - Question 4
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What is the maximum duration for which the Registrar can reserve a company name upon receiving an application?

Detailed Solution: Question 4

According to Section 4(5)(i), the Registrar can reserve the company name for a maximum period of 60 days from the date of the application.

Test: Formation of Company- 2 - Question 5
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According to Rule 13 of Companies (Incorporation) Rules 2014, how should the memorandum and articles of association be signed?

Detailed Solution: Question 5

Rule 13 specifies that the memorandum and articles of association should be signed by each subscriber in the presence of at least one witness who will attest the signature.

Test: Formation of Company- 2 - Question 6
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What is the purpose of filing an affidavit under Section 7(1)(c) of the Companies Act, 2013?

Detailed Solution: Question 6

The affidavit is filed to confirm that all the requirements of the Companies Act and its rules regarding registration have been complied with, and that the information provided is correct and complete.

Test: Formation of Company- 2 - Question 7
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What document is filed to furnish the verification of the registered office of a newly incorporated company?

Detailed Solution: Question 7

The verification of the registered office is filed using Form no INC 22 as per Rule 25(1) of Companies (Incorporation) Rules 2014.

Test: Formation of Company- 2 - Question 8
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According to Section 7(2) of the Companies Act, 2013, what is the effect of the certificate of incorporation issued by the Registrar?

Detailed Solution: Question 8

The certificate of incorporation issued by the Registrar is conclusive evidence that the company has complied with all registration requirements and is considered incorporated under the Act.

Test: Formation of Company- 2 - Question 9
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What action can the Tribunal take if a company has been incorporated by furnishing false information?

Detailed Solution: Question 9

The Tribunal can pass various orders, including regulating the management, ordering changes in the memorandum and articles, removing the company's name from the register, ordering winding up, and other appropriate actions, based on the situation.

Test: Formation of Company- 2 - Question 10
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What is the primary purpose of a corporate identity number allotted to a company by the Registrar?

Detailed Solution: Question 10

A corporate identity number is allotted to a company as a distinct and unique identifier. It helps distinguish the company and is used for various official purposes, including communication with the Registrar.

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About this B Com Practice Test

This test contains 10 MCQs on Formation of Company- 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 Formation of Company- 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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