Capital of a company is divided in to units of equal amounts is called Shares

The directors, having only limited powers to influence the day-to-day management of the company
TRUE
In the case of a company there is separation of ownership and management , the company is managed
y !irectors TRUE
The asic document is a letter issued y the "ead of the !epartment or #ffice, specifying $%%
The shareholders of a company are personally liale for the dets of the company &$%SE
'overnment !epartments()odies($gencies can open savings account provided they satisfy the
following conditions $%%

If the *oint stoc+ company ecomes insolvent , the shareholders will loseonly the capital
Trusts are created to carry on some activities for the enefit of a person or a group of persons +nown as
)eneficiaries
)oard(,anaging Committee('overning )ody resolution should mention mode of operation with
designated powers, list of authori-ed signatories, acceptance of the terms and conditions C#,.U%S#R/
$ company which is owned 0ointly y a group of persons and has a legal e1istence separate from that of
the owner is called *#I2T ST#C3 C#,.$2/
Shares cannot e transferred to third parties without the consent of other shareholders in case of
.RI4$TE
The an+ has to allow operation strictly in accordance with the provisions of the trust deed and should
not allow the Trustees to $%%
)an+ accounts can e opened only for --------------societies and associations U2RE'ISTER!
Shareholders can also inspect certain records of the company, which are specified in C#,.$2IES $CT
The Companies $ct, 5678 has specified matters which need to e approved y the shareholders such as
$%%
$ company can e formed y the --------------- or the initial share holders registering it with the -------------
------------- under the Companies $ct 5678, or y an act passed y the .arliament .romoters, Registrar of
companies



9ho are appointed y the author of the trust for carrying out the activities of the trust for the enefit of
the eneficiaries TRUSTEES
S"' stands for SE%& "E%. 'R#U.
The two ma0or types of companies are .ulic and .rivate limited Companies TRUE
9ho is responsile for managing the company in accordance with the policies approved y the )oard
,!
The signatures of the authorised signatories have to e otained in the account opening form and got
verified y the "#!
The )oard has the right to change and appoint new ,anaging director TRUE
The decisions of the )oard are recorded y way of :Resolutions: which are entered in the ,I2UTES
)##3
.rivate %imited Companies can invite suscription from the pulic to shares( deentures; TRUE
9hom will the court appoint while winding up of the company to sell the assets, recover the assets due
to the company and settle the liailities of the company %I<UI!$T#R
2ame of the .rivate %imited Companies should contain The word :.rivate %td:
The procedure to e followed for opening the account of a clu will depend upon its C#2STITUTI#2
In a *oint stoc+ companies the director is elected y the S"$RE"#%!ERS
#ther societies should e registered with RE'ISTR$R #& $SSUR$2CE
,a1imum memers e1cluding employees and e1-employees of .rivate %imited Companies are 7=
The responsiility cast on the an+ in the case of the account of a Trust is #2ER#US
In the case of )an+s, the R)I has directed that the )oard should meet atleast ------------- times a year 5=
.ulic trust is formed for the enefit of --------------at large S#CIET/
9hat document defines o0ectives and powers of the company ,E,# #& $SS#CI$TI#2
The certificate of commencement of usiness is required for oth .ulic limited and .rivate %imited
Companies &$%SE
To start the company ,it has to get the certificate from the Registrar called commencement of usiness

9hat is $rticles of $ssociation It specifies the internal rules and regulations governing the company;



In case of an emergency such as merger or appointment of a new ,!, which needs to e approved y
the shareholders, the )oard can convene E1traordinary 'eneral meeting
%iquidators have power to orrow money against the properties of the company TRUE
Trust formed for the enefit of a specific person or group of persons in a family is .RI4$TE TRUST
%i+e .artners shareholders can participate in day to day management of the 0oint stoc+
companyShareholders 5
The document that specifies the o0ectives of the trust is TRUST !EE!
Shareholders can inspect certain records of the company y giving notice to the
SECRET$R/
Trust can e .rivate Trust and .ulic trust TRUE
)an+ accounts are operated y the Secretary and Treasurer *#I2T%/
9ho cannot open Savings account according to R)I $%%
2$)$R! stands for 2ational )an+ for $gricultural and Rural !evelopment
.eople dealing with the company cannot proceed against the company for any --------------transactions
entered in to with the company U%TR$4IRES
9ho has to prescrie model documents for lending money to S"'s 2$)$R!
Self "elp 'roups are registered association &$%SE
In the event of death or resignation of any authorised signatory, operations in the account has to eans
Stopped and fresh resolution of the managing committee otained
Clus should e registered as $%%
The trustees have to record their decisions through resolutions TRUE
The cheques and instructions have to e signed y the authori-ed signatories #2 )E"$%& #& T"E
C#,.$2/
,a1imum memers e1cluding employees and e1-employees in .rivate %imited Company is 7=
The $ssociation of persons registered for Co-operative Societies should e ,#RE T"$2 >=
The mode of election of the president, treasurer, secretary and other office earers of the society
defines in The )ye laws of Society


The Trust deed specifies $%%
$ccording to Companies $ct the )oard of meeting should conduct atleast --------------times in a year ?
#n the death or resignation of a trustee, the procedure specified in the trust deed has to e followed in
continuing operation of the account TRUE
9hat account can e opened for government departments, odies, and companies current account