Q1Registered office verification deadline under Companies Act
2 marks hard
Case: Returning from Texas, USA, in January 2025, after undergoing a six months' course in Sound Engineering and music production, Aditya fully learnt and understood the nuances of music production; a skill which was always very close to his heart. He decided to open an audio-recording studio offering multi-lingual voice-over services, music composition, video post-production which is nothing but final phase of creation of videos where separate shots are assembled into a cohesive story and further, thought of providing services relating to other similar functions of creative nature. Initially, he un…
SurSangam Studios Private Limited was incorporated on 5 October 2025. Immediately after incorporation, Aditya informed the Registrar about the location of the registered office of the company. By which of the following dates must the company verify its registered office with the Registrar?
(A) 20th October 2025
(B) 4th November 2025
(C) 4th December 2025
(D) 3rd January 2026
Q2Name reservation validity period under SPICe+
2 marks hard
Case: Returning from Texas, USA, in January 2025, after undergoing a six months' course in Sound Engineering and music production, Aditya fully learnt and understood the nuances of music production; a skill which was always very close to his heart. He decided to open an audio-recording studio offering multi-lingual voice-over services, music composition, video post-production which is nothing but final phase of creation of videos where separate shots are assembled into a cohesive story and further, thought of providing services relating to other similar functions of creative nature. Initially, he un…
Suppose, Aditya obtained approval of the name "SurSangam Studios Private Limited" from the Registrar of Companies on 3 October 2025 for incorporating a new company. By which of the following dates will such approved name remain reserved by the Registrar in the first instance, within which the incorporation application must be filed?
(A) 10th October 2025
(B) 18th October 2025
(C) 23rd October 2025
(D) 2nd November 2025
Q3Small company classification criteria under Companies Act 20
2 marks hard
Case: Returning from Texas, USA, in January 2025, after undergoing a six months' course in Sound Engineering and music production, Aditya fully learnt and understood the nuances of music production; a skill which was always very close to his heart. He decided to open an audio-recording studio offering multi-lingual voice-over services, music composition, video post-production which is nothing but final phase of creation of videos where separate shots are assembled into a cohesive story and further, thought of providing services relating to other similar functions of creative nature. Initially, he un…
As several regulatory relaxations are available to a small company, Aditya wishes to know whether SurSangam Studios Private Limited can be treated as a small company. Which of the following statements is most suitable in this regard?
(A) Since Aditya did not specifically state at the time of incorporation that the company should be categorized as a small company, SurSangam Studios Private Limited cannot be considered a small company.
(B) Since Aditya did not specify such categorisation at the time of incorporation, SurSangam Studios Private Limited can be considered a small company only after completion of three financial years from the year of incorporation.
(C) Since Aditya did not specify such categorisation at the time of incorporation, SurSangam Studios Private Limited can be considered a small company only after completion of five financial years from the year of incorporation.
(D) SurSangam Studios Private Limited will be considered a small company if the prescribed limits relating to paid-up capital and turnover are not exceeded and the company is not covered under the excluded categories.
Q4Maximum members in a private limited company
2 marks hard
Case: Returning from Texas, USA, in January 2025, after undergoing a six months' course in Sound Engineering and music production, Aditya fully learnt and understood the nuances of music production; a skill which was always very close to his heart. He decided to open an audio-recording studio offering multi-lingual voice-over services, music composition, video post-production which is nothing but final phase of creation of videos where separate shots are assembled into a cohesive story and further, thought of providing services relating to other similar functions of creative nature. Initially, he un…
If SurSangam Studios Private Limited proposes to induct additional investors in the future, what is the maximum number of members it can have as per the Companies Act, 2013 (excluding present and former employees who are members)?
(A) 50
(B) 100
(C) 200
(D) No limit is prescribed
Q5Approval required for shifting registered office within same
2 marks hard
Case: Returning from Texas, USA, in January 2025, after undergoing a six months' course in Sound Engineering and music production, Aditya fully learnt and understood the nuances of music production; a skill which was always very close to his heart. He decided to open an audio-recording studio offering multi-lingual voice-over services, music composition, video post-production which is nothing but final phase of creation of videos where separate shots are assembled into a cohesive story and further, thought of providing services relating to other similar functions of creative nature. Initially, he un…
If SurSangam Studios shifts its registered office within the same city, which approval is required?
(A) Central Government only
(B) Regional Director only
(C) Board of Directors
(D) Special Resolution only
Q6Transfer of partner's share in LLP under LLP Act 2008
2 marks hard
Case: DEF LLP is a well-established limited liability partnership engaged in providing consulting services. It has four partners: A, B, C and D, each contributing equally to the capital and holding an equal share of the profits and losses, as detailed in the LLP agreement. The partnership operates smoothly until Partner A encounters significant financial difficulties due to personal business losses and decides to transfer his entire share of profits and losses in the LLP to Mr. X, an external investor, in exchange for financial assistance. The decision, although legal as per the LLP agreement, creat…
Can Partner A legally transfer their share of profits and losses to Mr. X?
(A) No, Partner A cannot transfer their share without the consent of all other partners.
(B) Yes, Partner A can transfer their share entirely in accordance with the LLP agreement.
(C) No, such transfers are not allowed under the LLP Act.
(D) Yes, but only if Mr. X becomes a partner in the LLP.
Q7Effect of share transfer on LLP dissolution
2 marks hard
Case: DEF LLP is a well-established limited liability partnership engaged in providing consulting services. It has four partners: A, B, C and D, each contributing equally to the capital and holding an equal share of the profits and losses, as detailed in the LLP agreement. The partnership operates smoothly until Partner A encounters significant financial difficulties due to personal business losses and decides to transfer his entire share of profits and losses in the LLP to Mr. X, an external investor, in exchange for financial assistance. The decision, although legal as per the LLP agreement, creat…
Does the transfer of Partner A's share to Mr. X result in the dissolution of DEF LLP?
(A) Yes, because transferring all rights indicates Partner A's disassociation.
(B) No, because the LLP Act, 2008 does not consider such transfers as grounds for dissolution.
(C) Yes, because all partners must agree to such transfers to avoid dissolution.
(D) No, unless it is explicitly stated in the LLP agreement.
Q8Rights of transferee of LLP share in management and financia
2 marks hard
Case: DEF LLP is a well-established limited liability partnership engaged in providing consulting services. It has four partners: A, B, C and D, each contributing equally to the capital and holding an equal share of the profits and losses, as detailed in the LLP agreement. The partnership operates smoothly until Partner A encounters significant financial difficulties due to personal business losses and decides to transfer his entire share of profits and losses in the LLP to Mr. X, an external investor, in exchange for financial assistance. The decision, although legal as per the LLP agreement, creat…
Does Mr. X gain any right to participate in DEF LLP's management or access its financial records?
(A) Yes, as he now holds Partner A's share in the LLP.
(B) No, unless expressly allowed by the LLP agreement.
(C) Yes, because it is essential to safeguard his investment.
(D) Yes, as external transferees are automatically included in LLP management.
Q9Ministry approval for cultural tours under FEMA
2 marks hard
Case: Progressive Management College have introduced a Global Management Diploma Course which is of 12 months duration. Out of 12 months, 11 months studies are held in India and rest of 1 month is earmarked for foreign tour. Rudra Pratap is the Principal of the college. After taking requisite permission from the competent Ministry, the cultural tour programme was chalked out and the team visited Malaysia, Singapore, Australia and New Zealand. Rudra Pratap's daughter Payal got admission in a medical college situated in California, United States of America. For fee and other expenses, Payal needs USD …
For the purpose of cultural tours, approval of which Ministry is required to be obtained?
(A) Ministry of Human Resources Development
(B) Ministry of External Affairs
(C) Ministry of Home Affairs
(D) Ministry of Commerce and Industry
Q10Foreign exchange withdrawal for education abroad under FEMA
2 marks hard
Case: Progressive Management College have introduced a Global Management Diploma Course which is of 12 months duration. Out of 12 months, 11 months studies are held in India and rest of 1 month is earmarked for foreign tour. Rudra Pratap is the Principal of the college. After taking requisite permission from the competent Ministry, the cultural tour programme was chalked out and the team visited Malaysia, Singapore, Australia and New Zealand. Rudra Pratap's daughter Payal got admission in a medical college situated in California, United States of America. For fee and other expenses, Payal needs USD …
For availing foreign exchange for studying abroad, which of the following option is correct?
(A) The transaction of withdrawal of foreign exchange of USD 2,25,000 for studying abroad is prohibited.
(B) The transaction of withdrawal of foreign exchange of USD 2,25,000 for studying abroad requires prior approval of Government of India.
(C) The transaction of withdrawal of foreign exchange of USD 2,25,000 for studying abroad requires prior approval of RBI.
(D) The transaction of withdrawal of foreign exchange of USD 2,25,000 for studying abroad do not require prior approval of RBI.
Q11Classification of cultural tour remittance under FEMA
2 marks hard
Case: Progressive Management College have introduced a Global Management Diploma Course which is of 12 months duration. Out of 12 months, 11 months studies are held in India and rest of 1 month is earmarked for foreign tour. Rudra Pratap is the Principal of the college. After taking requisite permission from the competent Ministry, the cultural tour programme was chalked out and the team visited Malaysia, Singapore, Australia and New Zealand. Rudra Pratap's daughter Payal got admission in a medical college situated in California, United States of America. For fee and other expenses, Payal needs USD …
The remittance of foreign exchange for arranging of cultural tour for the students is an example of:
(A) Capital Account Transactions
(B) Current Account Transactions
(C) Hybrid Transactions
(D) Amortised Transactions
Q12Filing of AGM report with Registrar under Companies Act 2013
2 marks easy
According to the provisions of the Companies Act, 2013, by what date should the company submit the AGM report to the Registrar? [Consider the date of AGM as 25th May 2024]
(A) 4th June 2024
(B) 9th June 2024
(C) 24th June 2024
(D) 25th June 2024
Q13Rectification of unregistered charge modification under Comp
2 marks easy
Best Limited initially created a charge in favor of LKJ Bank for a financial facility. This charge was duly registered. A few months later, LKJ Bank enhanced the credit facility by an additional ₹ 40 crore. However, due to an oversight, Best Limited failed to register the modification to the original charge with the Registrar of Companies. The company has now realized this error and is concerned about the potential impact on its records and compliance. As per the provisions of the Companies Act, 2013, what steps should Best Limited take to correct the situation regarding the unregistered modification of the charge?
(A) Ignore the oversight since the original charge was registered.
(B) Re-register only the original charge with the updated facility amount.
(C) File an application with the Central Government for rectification of the Register of Charges.
(D) Contact LKJ Bank to withdraw the enhanced facility until the registration is completed.
Q14Measurement of distance under General Clauses Act 1897
2 marks easy
ABC Limited operates a factory near a river. A recent Central Act mandates that factories must be located at least 3 kilometers away from any river. An environmental agency claims that ABC Limited's factory is only 2.5 kilometers away from the river, while ABC Limited argues that the distance is 4 kilometers, based on the road distance along a winding path leading to the river. As per the General Clauses Act, 1897, how should the distance between ABC Limited's factory and the river be measured to determine compliance with the Central Act?
(A) The distance should be measured along the shortest possible straight line (horizontal plane) between the factory and the river.
(B) The distance should be measured along the road/path actually travelled, as argued by ABC Limited.
(C) The environmental agency's estimate of 2.5 kilometres should be automatically accepted since it favors environmental protection.
(D) The distance should be measured based on any reasonable method, as long as it justifies the company's compliance.
Q15Entrenchment provisions in articles of association
2 marks easy
Entrenchment enhance the protection. ABC Limited, an existing private company willing to insert the provisions for entrenchment; it
(A) Can amend the article by passing an ordinary resolution
(B) Can amend the article by passing a special resolution
(C) Can amend the article agreed by all the members
(D) Can't amend article to make the provisions for entrenchment