Formation of a Company

Which of the following is the correct sequence in the formation of a public company?

1. Incorporation → Promotion → Capital Subscription → Commencement
2. Promotion → Incorporation → Capital Subscription → Commencement
3. Promotion → Capital Subscription → Incorporation → Commencement
4. Capital Subscription → Promotion → Incorporation → Commencement

The document inviting the public to buy shares is called:

1. Memorandum
2. Articles
3. Prospectus
4. Annual Report

Which clause states the liability of members?

1. Liability Clause
2. Object Clause
3. Association Clause
4. Name Clause

Which clause of the Memorandum specifies the state in which the registered office is situated?

1. Name Clause
2. Capital Clause
3. Registered Office Clause
4. Liability Clause

Which company can commence business immediately after incorporation?

1. Public Company
2. Government Company only
3. Private Company
4. Listed Company only

Preliminary contracts are entered into by:

1. Directors after incorporation
2. Promoters before incorporation
3. Shareholders after allotment
4. Auditors after registration

Which authority issues the Certificate of Incorporation?

1. Reserve Bank of India
2. Registrar of Companies
3. SEBI
4. Ministry of Finance

The minimum subscription refers to:

1. Maximum amount of share capital
2. Minimum amount to be raised before share allotment
3. Profit earned by the company
4. Dividend paid to shareholders

A prospectus is issued by:

1. Partnership Firm
2. Sole Proprietorship
3. Public Company
4. Cooperative Society

Which stage comes immediately after incorporation?

1. Promotion
2. Capital Subscription
3. Liquidation
4. Winding Up

Which certificate gives a company its legal existence?

1. Certificate of Commencement of Business
2. Certificate of Incorporation
3. Prospectus
4. Share Certificate

Which document contains the internal rules and regulations of a company?

1. Memorandum of Association
2. Articles of Association
3. Prospectus
4. Share Certificate

Which document contains the objectives of a company?

1. Prospectus
2. Memorandum of Association
3. Articles of Association
4. Certificate of Incorporation

A person who undertakes to form a company is called a:

1. Director
2. Shareholder
3. Promoter
4. Auditor

The first stage in the formation of a company is:

1. Incorporation
2. Promotion
3. Capital Subscription
4. Commencement of Business