Question : Which company prohibits any invitation or acceptance of deposits from a person other than its member, directors, or their relatives?
Option 1: Public Company
Option 2: Private Company
Option 3: Both 1 and 2
Option 4: None of the above
Correct Answer: Private Company
Solution : Private companies, as defined under the Companies Act, 2013, are prohibited from inviting or accepting deposits from persons other than their members, directors, or their relatives. Private companies are restricted from raising funds by accepting deposits from the public as a measure to safeguard the interests of depositors and maintain financial stability within the company. Hence, the correct answer is option 2.
Question : Company Law prohibits any invitation or acceptance of deposits from persons other than its member, Directors or their relatives for :
Option 1: Private Company
Option 2: Public Company
Option 3: One Person Company
Option 4: None of the Above
Question : Forbids the acceptance of deposits from individuals other than its members, directors, or their relatives, for:
Option 3: Government Company
Option 4: Investment Company
Question : The operational period of a company is affected by:
Option 1: retirement of its member
Option 2: marriage of its member
Option 3: unsoundness of its member
Option 4: None of these
Question : The name of a public company ends with the word-
Option 1: Private Limited
Option 2: Association of Person (AOP)
Option 3: Limited
Question : Which shares are awarded by a Company to its directors or workers in recognition of their commitment and hard work towards the company?
Option 1: Bonus Shares
Option 2: Sweat Equity Shares
Option 3: Prefrence Shares
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