Company Management Additional One Mark Online Test

Company Management Additional One Mark Online Test (12th Standard Commerce)

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Which section of the Companies Act, 2013 defines a director as a director appointed to the Board of a company?

A.Section 2(34) B.Section 2(51) C.Section 149(1) D.Section 165

Which of the following is NOT listed as Key Managerial Personnel under Section 2(51) of the Companies Act, 2013?

A.Chief Executive Officer B.Company Secretary C.Chief Financial Officer D.Independent Director

Consider the following statements on the general composition of the Board of Directors:
1. The Board should have at least one woman director.
2. Not less than fifty percent of the Board should be non-executive directors.
Which of the statements given above is/are correct?

A.1 only B.2 only C.Both 1 and 2 D.Neither 1 nor 2

Under Section 149(3), every company should appoint a director who has stayed in India for a total period of not less than ________ days in the previous calendar year.

A.120 B.150 C.182 D.240

A public company must appoint at least two independent directors if its paid-up share capital is ________ or more.

A.Rs. 5 crores B.Rs. 10 crores C.Rs. 50 crores D.Rs. 100 crores

Which of the following public companies must appoint at least one woman director?
1. Every listed company
2. A public company with paid-up share capital of one hundred crore rupees or more
3. A public company with turnover of three hundred crore rupees or more
Select the correct answer:

A.1 and 2 only B.2 and 3 only C.1 and 3 only D.1, 2 and 3

A director appointed by the Board of Directors as a substitute for a director who is absent from India is called a/an ________.

A.Additional director B.Alternate director C.Nominee director D.Shadow director

A person who is not a member of the Board but has some power to run it is known as a ________.

A.Shadow director B.Resident director C.Independent director D.Whole-time director

A person who accepts appointment as a director in excess of the limit on directorships is punishable with a fine of not less than Rs. 5,000, which may extend to ________ for every day after the first day.

A.Rs. 10,000 B.Rs. 15,000 C.Rs. 25,000 D.Rs. 50,000

Q10

Assertion (A): Directors are not full-fledged agents of the company.
Reason (R): Directors are elected persons, whereas agents are appointed persons.

A.Both A and R are true and R is the correct explanation of A B.Both A and R are true but R is not the correct explanation of A C.A is true but R is false D.A is false but R is true

Q11

The directors of a company issue shares to the public and collect Rs. 100 per share, but do not pay Rs. 100 for the shares taken by themselves. In which legal position have they failed?

A.As agents B.As trustees C.As employees D.As officers

Q12

Under Section 152, in a public company, what portion of the total number of directors is generally appointed by the shareholders?

A.One-half B.One-third C.Two-thirds D.Three-fourths

Q13

Which number is compulsory for the appointment of a director of a company?

A.Permanent Account Number B.Director Identification Number C.Corporate Identity Number D.Membership number of the Institute of Company Secretaries

Q14

The company should file the particulars of appointment of directors with the Registrar of Companies within ________ of the appointment.

A.15 days B.30 days C.60 days D.90 days

Q15

Under Section 169, shareholders can remove a director before the expiry of his term by giving a special notice and passing a/an ________.

A.Ordinary resolution B.Special resolution C.Board resolution D.Circular resolution

Q16

The Central Government removes managerial personnel from office on the recommendation of the ________.

A.Registrar of Companies B.Board of Directors C.Company Law Board D.Shareholders in general meeting

Q17

A public company having adequate profits can pay remuneration to its directors, including the Managing Director and Whole-time Directors, and its managers, not exceeding ________ of the net profit.

A.5% B.9.91% C.11% D.15%

Q18

Where a company has no profit or inadequate profit and its effective capital is negative or less than 5 crore, the yearly remuneration payable shall not exceed ________.

A.Rs. 30 lakh B.Rs. 42 lakh C.Rs. 60 lakh D.Rs. 60 lakh plus 9.91% of the excess capital

Q19

The power to make calls on shareholders, to issue debentures and to approve financial statements are exercised by passing a resolution in a meeting. Under which head of directors' powers do they fall?

A.Statutory powers B.Managerial powers C.Powers only with a resolution D.Other powers

Q20

Match the power with its head:
(a) Power to contract with a third party - 1. Other powers
(b) To sell or lease any asset of the company - 2. Statutory powers
(c) Power to fill casual vacancy - 3. Managerial powers
(d) Power to invest the funds of the company - 4. Powers only with a resolution

A.(a)-3, (b)-4, (c)-1, (d)-2 B.(a)-4, (b)-3, (c)-2, (d)-1 C.(a)-3, (b)-1, (c)-4, (d)-2 D.(a)-2, (b)-4, (c)-1, (d)-3

Q21

Which of the following is a collective right of directors and not an individual right?

A.Right to inspect books of accounts B.Right to receive notices of board meetings C.Right to inspect minutes of board meetings D.Right to refuse to transfer shares

Q22

Consider the following statements on the right to recommend dividend:
1. Shareholders can compel the directors to pay dividend.
2. Shareholders can reduce the rate of dividend recommended by the Board.
Which of the statements given above is/are correct?

A.1 only B.2 only C.Both 1 and 2 D.Neither 1 nor 2

Q23

Among the specific duties of a director, he must hold the minimum qualification shares within ________ after his appointment.

A.One month B.Two months C.Three months D.Six months

Q24

In which of the following cases are directors NOT personally liable to outsiders?

A.When they contract with outsiders in their personal capacity B.When they contract as agents of an undisclosed principal C.When they enter into a contract on behalf of a prospective company D.When they act within the scope of powers vested in them

Q25

Directors are liable to the company for misfeasance. The word misfeasance covers ________.

A.Wilful negligence B.Mere failure to recover debts due to the company C.Acting within the powers given in the Articles D.Refusing to register a transfer of shares

Q26

Which one of the following is NOT a situation of criminal liability of directors?

A.Mis-statement in the prospectus B.Default in holding the Annual General Meeting C.Failure to issue share and debenture certificates D.Recommending a lower rate of dividend

Q27

The register of directors and Key Managerial Personnel is kept as per Rule ________.

A.7 B.12 C.17 D.21

Q28

Consider the following statements on the difference between a manager and a director:
1. A manager comes under the executive or middle level of management.
2. A director comes under top-level management and plays an important role in decision making.
Which of the statements given above is/are correct?

A.1 only B.2 only C.Both 1 and 2 D.Neither 1 nor 2

Q29

No individual can be appointed as Managing Director for more than ________ at a time.

A.Three years B.Five years C.Seven years D.Ten years

Q30

Consider the following statements on the number of directors:
1. A company can appoint a maximum of 15 directors.
2. To appoint more than 15 directors, a special resolution in general meeting and the approval of the Central Government are both needed.
Which of the statements given above is/are correct?

A.1 only B.2 only C.Both 1 and 2 D.Neither 1 nor 2

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About this Company Management test

This free online practice test covers Company Management from the 12th Standard Commerce (Samacheer Kalvi) syllabus. Choose the number of questions and an optional time limit, then answer and submit — everything is checked in your browser, with the correct answers and a worked explanation shown at the end. For the full solutions to every question in this set, see the solved MCQs page.

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