Moa MCQ

1. What is the purpose of Memorandum of Association?
A) To describe the purpose for which the company is formed.

B) To define the powers of the company.
C) To regulate the company's relations with the government.
D) To determine the liability of the shareholders.
2. What is the consequence if a company operates beyond the scope of

its Memorandum of Association?
A) The shareholders will be held personally liable.
B) The Memorandum of Association will be amended.
C) The company will be dissolved.
D) The action will be considered ultra vires and void.
3. What does Section 4 of the Companies Act, 2013 state?

A) The contents that the Memorandum of Association should contain.
B) The types of limited liabilities mentioned in the Memorandum of
Association.
C) The conditions for applying for a reservation of a company name.
D) The process of changing the registered office of a company.
4. Under what condition should a public company include 'Limited' in its
name?
A) If the company is listed on the stock exchange.
B) If a company is a public company.
C) If the company is a subsidiary of another company.
D) If the company has a high capital investment.
5. Which of the following names is not allowed for a company as per the
Memorandum of Association?
A) A name that includes a registered trademark.
B) A name that resembles a statutory name.
C) A difficult-to-pronounce name.
D) A name identical to or too nearly resembling the name of an existing
company.
6. What is the purpose of reserving a name for a company?

A) To ensure that the company can incorporate using the reserved name
within a specified period.
B) To limit the time for which the name is registered.
C) To give the company exclusive rights over the reserved name.
D) To protect the name from being used by another company.
7. What will happen if wrong information is found after making a
reservation of a name?
A) The Registrar can cancel the reservation and impose a fine if the
company has not been incorporated, or may take various actions if the
company has been incorporated.
B) The company will be suspended until the correct information is
provided.
C) The company will be forced to change the name immediately.
D) The reservation of the name will be cancelled without any
consequences.
8. What is the significance of the Registered Office clause in the

Memorandum of Association?
A) It determines the nationality and jurisdiction of courts for the
company.
B) It specifies the office in which the company will conduct its
operations.
C) It ensures that the company's name and address are displayed on
the outside of its office.
D) It helps in verifying the location of the registered office after
incorporation.
9. When does a company have to specify the exact location of its
registered office?
A) Before submitting the Memorandum of Association.
B) During the process of applying for a reservation of the company
name.
C) After incorporation.
D) At the time of registering with the Registrar.
10. What is the purpose of the Object Clause in the Memorandum of

Association?
A) To protect shareholders by limiting their liability.
B) To specify the amount and type of share capital in the company.
C) To provide legal protection to the company from being held liable.
D) To state the purpose for which the company is formed and limit its
scope of powers.
11. Who does the Object Clause provide protection to?

A) Shareholders, creditors, and public interest.
B) Directors and officers of the company.
C) Government authorities.
D) Employees of the company.
12. Which kind of limited liability protects the shareholders from being
held personally liable for the loss of the company?
A) Liability limited by Subscription.
B) Liability limited by Objects.
C) Liability limited by Guarantee.
D) Liability limited by Shares.
13. What does the Capital Clause state in the Memorandum of

Association?
A) The percentage of profit that will be distributed to shareholders.
B) The shareholding structure of the company.
C) The total amount of share capital in the company and how it is
divided into shares.
D) The duration for which the share capital is invested in the company.
14. What information should be mentioned in the Subscription Clause?

A) The qualifications and past experiences of the subscribers.
B) The names of the subscribers, the number of shares subscribed to,
and the signatures of the subscribers and witnesses.
C) The total number of shares available for subscription.
D) The subscription fee paid by each subscriber.
15. How many witnesses are required to sign the Memorandum of
Association?
A) Three.
B) Two.
C) One.
D) It depends on the number of subscribers.
16. What is required for a subscriber to fulfill their obligations?

A) To sign a separate agreement with the company.
B) To pay the entire subscription fee upfront.
C) To subscribe to at least one share.
D) To subscribe to a specific number of shares.
Answer Sheet
1. A
2. D
3. A
4. B
5. D
6. A
7. A
8. A
9. C
10. D
11. A
12. D
13. C
14. B
15. B
16. C

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1. What is the purpose of Memorandum of Association?

A) To describe the purpose for which the company is formed.

2. What is the consequence if a company operates beyond the scope of

3. What does Section 4 of the Companies Act, 2013 state?

6. What is the purpose of reserving a name for a company?

8. What is the significance of the Registered Office clause in the

10. What is the purpose of the Object Clause in the Memorandum of

11. Who does the Object Clause provide protection to?

13. What does the Capital Clause state in the Memorandum of

14. What information should be mentioned in the Subscription Clause?

16. What is required for a subscriber to fulfill their obligations?

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