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Test: Formation of Company- 3 - B Com MCQ


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10 Questions MCQ Test - Test: Formation of Company- 3

Test: Formation of Company- 3 for B Com 2024 is part of B Com preparation. The Test: Formation of Company- 3 questions and answers have been prepared according to the B Com exam syllabus.The Test: Formation of Company- 3 MCQs are made for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Test: Formation of Company- 3 below.
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Test: Formation of Company- 3 - Question 1

What is the purpose of filing an application for the reservation of a company name under section 4(4) of the Companies Act, 2013?

Detailed Solution for Test: Formation of Company- 3 - Question 1
An application for the reservation of a company name is filed to obtain a name for the company's proposed incorporation or to change its existing name. This process ensures that the chosen name is available and compliant with legal requirements.
Test: Formation of Company- 3 - Question 2

What is the significance of the certificate of incorporation issued by the Registrar of Companies?

Detailed Solution for Test: Formation of Company- 3 - Question 2
The certificate of incorporation issued by the Registrar serves as conclusive evidence that all legal requirements for registration have been met. It confirms that the company is incorporated under the Companies Act, 2013.
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Test: Formation of Company- 3 - Question 3

According to section 4(2) of the Companies Act, 2013, what is a restriction on choosing a company name?

Detailed Solution for Test: Formation of Company- 3 - Question 3
Section 4(2) prohibits choosing a name that is identical or too similar to the name of an existing registered company. This is to avoid confusion and ensure distinctiveness among company names.
Test: Formation of Company- 3 - Question 4
According to section 7(1)(c) of the Companies Act, 2013, who is required to furnish a declaration during the company's incorporation process?
Detailed Solution for Test: Formation of Company- 3 - Question 4
Section 7(1)(c) requires a declaration from an advocate, chartered accountant, cost accountant, or company secretary in practice, and from a person named in the articles as a director, manager, or secretary of the company, stating that all requirements for registration have been complied with.
Test: Formation of Company- 3 - Question 5
What is the purpose of obtaining a Director Identification Number (DIN) under the Companies Act, 2013?
Detailed Solution for Test: Formation of Company- 3 - Question 5
Obtaining a Director Identification Number (DIN) is mandatory for individuals intending to become directors of a company. It helps identify and regulate the activities of company directors, ensuring their accountability and transparency.
Test: Formation of Company- 3 - Question 6
Under what circumstances can the Tribunal take action against a company incorporated with false information?
Detailed Solution for Test: Formation of Company- 3 - Question 6
The Tribunal can take action against a company incorporated with false information when an application is submitted to the Tribunal, and it is satisfied that the situation warrants action. The Tribunal may pass orders for regulating the company's management, altering its memorandum and articles, removing its name from the register, winding it up, or other suitable measures.
Test: Formation of Company- 3 - Question 7
What is the primary purpose of Rule 9 of the Companies (Incorporation) Rules 2014?
Detailed Solution for Test: Formation of Company- 3 - Question 7
Rule 9 of the Companies (Incorporation) Rules 2014 specifies the fees that need to be paid along with an application for the reservation of a company name. It provides the fee structure for this aspect of the company incorporation process.
Test: Formation of Company- 3 - Question 8
According to section 4(5)(i) of the Companies Act, 2013, for how long can a reserved name be held by the Registrar?
Detailed Solution for Test: Formation of Company- 3 - Question 8
Section 4(5)(i) states that upon receipt of an application under section 4(4), the Registrar may reserve the name for a period of 60 days from the date of the application. This gives the company time to complete the incorporation process.
Test: Formation of Company- 3 - Question 9
What is the primary objective of filing a verification of the registered office under section 12 of the Companies Act, 2013?
Detailed Solution for Test: Formation of Company- 3 - Question 9
Filing a verification of the registered office confirms the company's place of communication and business operations. It ensures that the company has a registered office capable of receiving communications and notices.
Test: Formation of Company- 3 - Question 10
What is the purpose of section 4(3) of the Companies Act, 2013?
Detailed Solution for Test: Formation of Company- 3 - Question 10
Section 4(3) of the Companies Act, 2013, restricts the use of certain words or expressions in company names that may create a false impression. This ensures that company names do not imply undue associations with government entities or use words that might mislead the public.
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