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Class 11 Formation of a Company worksheet
CBSE Business Studies. Promotion, feasibility studies, the memorandum and its clauses, articles, incorporation documents, prospectus and minimum subscription. Every sheet has 20 questions in three sections and an answer key, and the numbers change every time.
Sample questions
Real questions from this chapter, as the app sets them. Tap Answer to see the answer and working.
Section A · multiple choice
- 1.
The person who conceives the idea of a business and takes steps to form a company is the:
- shareholder
- auditor
- director
- promoter
Answer
(d) promoter
- 2.
What is meant by “certificate of incorporation”?
- conclusive proof that a company legally exists
- the least amount that must be raised before allotment
- beyond the powers given by the objects clause
- contracts made by promoters before incorporation
Answer
(a) conclusive proof that a company legally exists
- 3.
Which step belongs to the capital subscription stage?
- identifying a business opportunity
- fixing up signatories to the memorandum
- appointing bankers, auditors and legal advisers
- applying to a stock exchange for listing
Answer
(d) applying to a stock exchange for listing
Section B · short answer
- 4.
Who is a promoter?
Answer
A person who identifies a business opportunity and takes the steps needed to bring a company into existence.
- 5.
Explain each term: (a) ultra vires (b) certificate of incorporation
Answer
(a) beyond the powers given by the objects clause (b) conclusive proof that a company legally exists
Section C · long answer
- 6.
Explain the steps taken by a promoter during the promotion stage.
Answer
Identification of a business opportunity, feasibility studies, name approval, fixing up signatories to the memorandum, appointment of professionals, and preparation of necessary documents.
Fresh sheets for your child
In the app, every Formation of a Company sheet is new: the app remembers the questions your child has already had and leaves them out. Print the sheet as a PDF, or use notebook mode and write the answers in a notebook.
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