Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Setting up of Business Entities and Closure Total Number of Question: 40 Time: 41 Minutes Please check your email after completion of test for result. All the best... Name Phone No Email State 1. Which document serves as the charter of a company outlining its objectives and scope? Articles of Association Memorandum of Association Board Resolution Shareholders’ Agreement None 2. The Articles of Association primarily deal with: The company’s external relationships The internal management rules of the company The company’s financial structure Licensing requirements None 3. For a public company, which of the following is mandatory at the time of incorporation? A minimum of two directors A minimum of three directors A minimum of five directors No directors are required at incorporation None 4. A one-person company (OPC) must have a nominee to take over in the event of: Insolvency Death or incapacity of the sole member Merger Change in business activities None 5. Which document is necessary for obtaining a Digital Signature Certificate (DSC) for company registration? PAN Card Identity and Address Proof of the proposed directors Memorandum of Association Board Resolution None 6. Which of the following registrations is compulsory for any business dealing with taxable supplies? Import Export Code (IEC) GST Registration Udyam Registration FSSAI License None 7. The Shops and Establishments Act regulates: Manufacturing processes The rights and obligations of employers and employees in commercial establishments Environmental compliance Foreign investments None 8. Which certificate is mandatory for a business engaged in food processing? ISO Certification FSSAI License GST Registration MSME Certification None 9. Under the Companies Act, 2013, which of the following is a mandatory annual compliance requirement? Filing of Income Tax Return Annual Return and Financial Statements filing with ROC Conducting a Board Meeting Audit by a Chartered Accountant None 10. The Udyam Registration is primarily associated with which of the following? Micro, Small and Medium Enterprises (MSMEs) Public Limited Companies Foreign Companies Start-ups only None 11. Which body is responsible for ensuring corporate governance practices in companies? Ministry of Corporate Affairs National Company Law Tribunal Stock Exchanges Board of Directors None 12. A merger involves: One company taking over another without a change in structure Combining two or more companies to form a new entity A hostile takeover A company dissolving its subsidiary None 13. Demerger refers to: Splitting a company into two or more distinct entities Merging with a competitor Liquidating a company Taking over another company None 14. Which of the following is a key advantage of corporate restructuring? Increased compliance costs Enhanced operational efficiency Reduced market presence Complicated management structure None 15. In the context of corporate restructuring, the term “amalgamation” is best defined as: The dissolution of a company The merger of two or more companies into one A type of takeover A corporate audit process None 16. Which of the following taxes is applicable on the sale of goods and services? Excise Duty GST Income Tax Corporate Tax None 17. A company is subject to Corporate Tax if it is registered as: A Partnership Firm A Private or Public Company A One Person Company only A Sole Proprietorship None 18. The Tax Deducted at Source (TDS) mechanism is designed to: Avoid double taxation Ensure timely tax collection Provide tax exemptions Facilitate foreign investments None 19. Which of the following is NOT directly related to GST compliance? Issuance of GST Invoice Monthly GST Return Filing Annual Income Tax Audit Maintaining proper tax records None 20. Under the GST regime, the reverse charge mechanism applies to: All supplies made by registered dealers Specified goods and services where the recipient pays tax Exempt supplies Exports only None 21. A wholly-owned subsidiary in India means that the parent company owns: Less than 50% of the shares 100% of the shares Exactly 50% of the shares None of the above None 22. A branch office of a foreign company is allowed to: Carry out all commercial activities in India Operate only as a liaison office Engage in export activities only Function without any regulatory oversight None 23. Under the automatic route of FDI, foreign investment in which sector is generally permitted without prior government approval? Multi-brand retail Defense manufacturing IT & software services Real estate None 24. Which of the following is a benefit for foreign companies setting up in India? Exemption from local laws Access to a rapidly growing consumer market Guaranteed government subsidies No tax liabilities None 25. In order to set up a joint venture with an Indian entity, a foreign company must comply with: Only its home country regulations Both Indian and home country laws Only Indian laws No specific legal requirements None 26. Voluntary winding-up of a company is initiated by: The National Company Law Tribunal The creditors The company’s shareholders or members The government None 27. Compulsory winding-up is typically ordered by: The company’s Board of Directors The Registrar of Companies A court or tribunal The Ministry of Corporate Affairs None 28. Which of the following is a key step in the liquidation process? Issuing new shares Appointing a liquidator Increasing the share capital Expanding business operations None 29. The Insolvency and Bankruptcy Code (IBC) applies to: Only financial institutions All corporate and individual insolvency cases Only manufacturing companies Only foreign companies None 30. A company may be struck off the register if it: Fails to hold regular board meetings Does not commence business within one year of incorporation Refuses to merge with another company Has a low market share None 31. The Companies Act, 2013 is applicable to: Only public companies Both private and public companies Sole Proprietorships only Partnership Firms only None 32. Which section of the Companies Act, 2013 primarily deals with the winding-up of companies? Section 270 Section 248 Section 396 Section 301 None 33. In case of an amalgamation, which document is required to be prepared by the companies involved? Amalgamation Scheme Memorandum of Association Articles of Association Board Resolution only None 34. Under which circumstances can a company be ordered for compulsory winding-up? Persistent losses over five years Inability to pay its debts Failure to increase its paid-up capital Reduction in profit margins None 35. Which of the following is NOT a common ground for winding up a company? Just and equitable grounds Inability to pay debts Expiration of the company’s registered office lease Special resolution passed by the company None 36. Which of the following initiatives is aimed at simplifying business regulations for start-ups? Make in India Startup India Digital India Atmanirbhar Bharat None 37. The concept of ‘corporate social responsibility’ (CSR) in companies is enforced under: The Companies Act, 2013 The Income Tax Act The SEBI Regulations The Insolvency and Bankruptcy Code None 38. A ‘strike off’ of a company implies that: The company has been liquidated voluntarily The company has been removed from the register due to non-compliance The company has merged with another The company is undergoing insolvency proceedings None 39. Which of the following measures can help avoid unnecessary delays during the business closure process? Early preparation of statutory records Avoiding board meetings Delaying the appointment of a liquidator Increasing operational complexity None 40. In the context of corporate restructuring, a ‘reverse merger’ is best described as: A private company merging with a public company to become publicly listed Two companies merging and then splitting A company merging with its competitor to form a new entity The liquidation of a subsidiary followed by acquisition None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test. Look out for results and future opportunities. Stay Connected !! Your quiz time is about to finish. Few seconds left. 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