14 Questions
What is the function of a promoter in the formation of a company?
Conceiving a business idea and taking initiative to form a company
What is the first stage in the formation of a company?
Promotion
What does 'separate legal entity' mean in the context of a company?
The company's legal status is independent of its members
What is the capital of a company divided into?
'Shares'
What is one of the feasibility studies performed by the promoters in the formation of a company?
Technical feasibility study
Why does every company have to get its name approved from the registrar of companies?
To avoid conflicts with other companies' names
What is the principal document of a company?
Memorandum of Association (MOA)
What does MOA stand for in the context of company formation?
Memorandum of Association
Who appoints professionals like auditors and mercantile banks for a company?
Promoters
What is the purpose of a prospectus in the context of raising funds for a company?
Inviting the public to apply for purchase of shares or debentures
Who is responsible for disclosing all material facts to SEBI in India?
Companies
Why is alteration in the Memorandum of Association possible?
To adapt to changing business needs and circumstances
What is the significance of the Doctrine of outdoor management in relation to a company's operations?
It defines the boundaries within which a company can operate
Who signs the Memorandum of Association in the case of a private company?
At least two persons
Test your knowledge about the formation of a company as per Class 11 Business Notes. This quiz covers topics such as stages of formation, capital division, legal status, and governance under the Companies Act, 2013.
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