Class 11 Business Studies - Chapter Formation of a Company NCERT Solutions | What are the legal effects of the 'C
What are the legal effects of the 'Certificate of Incorporation'?
The Certificate of Incorporation has several legal effects that are vital for the company’s existence. First, it signifies the official creation of the company, granting it a separate legal identity independent of its members. This means the company can own property, enter into contracts, and initiate or face legal proceedings in its name. Second, the certificate ensures perpetual succession, meaning the company’s existence is unaffected by changes in its ownership or management. Third, it establishes the principle of limited liability, protecting shareholders’ personal assets from business debts. Lastly, it gives the company the authority to operate as a recognized legal entity. This certificate, once issued, is conclusive proof of the company’s lawful formation and provides it with a framework to conduct business activities within legal boundaries.
More Questions From Class 11 Business Studies - Chapter Formation of a Company
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Analyze the significance of the 'Prospectus' in the formation of a public company.
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Define 'Memorandum of Association' and its significance.
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Elaborate on the contents of the 'Memorandum of Association' and their significance.
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Popular Questions of Class 11 Business Studies
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1. The structure in which there is separation of ownership and management is called
(a) Sole proprietorship (b) Partnership
(c) Company (d) All business organisations2. The karta in Joint Hindu family business has
(a) Limited liability (b) Unlimited liability
(c) No liability for debts (d) Joint liability3. In a cooperative society the principle followed is
(a) One share one vote (b) One man one vote
(c) No vote (d) Multiple votes4. The board of directors of a joint stock company is elected by
(a) General public (b) Government bodies
(c) Shareholders (d) Employees5. Profits do not have to be shared. This statement refers to
(a) Partnership (b) Joint Hindu family business
(c) Sole proprietorship (d) Company6. The capital of a company is divided into number of parts each one of which are called
(a) Dividend (b) Profit
(c) Interest (d) Share7. The Head of the joint Hindu family business is called
(a) Proprietor (b) Director
(c) Karta (d) Manager8. Provision of residential accommodation to the members at reasonable rates is the objective of
(a) Producer’s cooperative (b) Consumer’s cooperative
(c) Housing cooperative (d) Credit cooperative9. A partner whose association with the firm is unknown to the general public is called
(a) Active partner (b) Sleeping partner
(c) Nominal partner (d) Secret partner - Q:-
1. A government company is any company in which the paid up capital held by the government is not less than
(a) 49 per cent (b) 51 per cent
(c) 50 per cent (d) 25 per cent2. Centralised control in MNC’s implies control exercised by
(a) Branches (b) Subsidiaries
(c) Headquarters (d) Parliament3. PSE’s are organisations owned by
(a) Joint Hindu family (b) Government
(c) Foreign Companies (d) Private entrepreneurs4. Reconstruction of sick public sector units is taken up by
(a) MOFA (b) MoU
(c) BIFR (d) NRF5. Disinvestments of PSE’s implies
(a) Sale of equity shares to (b) Closing down private sector/public operations
(c) Investing in new areas (d) Buying shares PSE’s6. The equity-based joint venture does not include
(a) Cooperative development (b) Company
(c) Partnership (d) Limited liability partnership - Q:-
List any five major commercial cities of ancient India?
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1. A government company is any company in which the paid up capital held by the government is not less than
(a) 49 per cent (b) 51 per cent
(c) 50 per cent (d) 25 per cent2. Centralised control in MNC’s implies control exercised by
(a) Branches (b) Subsidiaries
(c) Headquarters (d) Parliament3. PSE’s are organisations owned by
(a) Joint Hindu family (b) Government
(c) Foreign Companies (d) Private entrepreneurs4. Reconstruction of sick public sector units is taken up by
(a) MOFA (b) MoU
(c) BIFR (d) NRF5. Disinvestments of PSE’s implies
(a) Sale of equity shares to (b) Closing down private sector/public operations
(c) Investing in new areas (d) Buying shares PSE’s6. The equity-based joint venture does not include
(a) Cooperative development (b) Company
(c) Partnership (d) Limited liability partnership
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