67 Views

Question : There are two statements marked as Assertion (A) and Reason (R). Read the statements and choose the prop rite option from the options given below
(A) Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
(C) Assertion (A) is false, but Reason ( R ) is true.
(D) Assertion (A) is true, but Reason (R) is false.
Question:
Assertion (A): A company must receive a minimum subscription on the public issue of shares
Reason (R): In default to receive a minimum subscription, the company could not allot its shares

Option 1: A

Option 2: B

Option 3: C

Option 4: D


Team Careers360 10th Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: A


Solution : Answer = (A) Both Assertion (A) and Reason (R) are true, but Reason (R) is the correct explanation of Assertion (A).

Assertion (A) is true because according to company law, a company must receive the minimum subscription amount as specified in the prospectus to proceed with the allotment of shares. Reason (R) is also true because if a company fails to receive the minimum subscription, it cannot allot shares as it would not meet the legal requirement for issuing shares. Thus, Reason (R) explains why Assertion (A) is true.
Hence, the correct option is 1.

Related Questions

Amity University-Noida B.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Amity University-Noida MBA Ad...
Apply
Ranked among top 10 B-Schools in India by multiple publications | Top Recruiters-Google, MicKinsey, Amazon, BCG & many more.
Narayana Business School MBA/...
Apply
Top 30 Private B-Schools Nationally and Top 3 in Gujarat | Highest CTC- 20 LPA | Average CTC- 8.4 LPA | 40% Pre-Placement Offers | 670+ Recruiters 
JAGSoM PGDM Admissions 2026
Apply
Highest CTC 51.38 LPA | Median CTC 10.32 LPA | Top 25% Average CTC 14.32 LPA
IFMR Graduate School of Busin...
Apply
Application Deadline 15th Jan’26 | UGC Approved Programs | Near 100% Placement Record | Up to 100% Scholarships | Highest CTC 21.32 LPA
Amity University-Noida Law Ad...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books