The charter of a company which defines the limitations and powers of the company is called
A. Memorandum of Association
B. Articles of Association
C. Statutory Report
D. Certificate of Commencement
Answer: Option A
Solution(By Examveda Team)
The memorandum of association of a company is the charter and defines the limitation of the power of the company established under Companies Act. Memorandum of Association is the most important document of a company. It states the objects for which the company is formed. It contains the rights, privileges and powers of the company. Hence it is called a charter of the company. It is treated as the constitution of the company. It determines the relationship between the company and the outsiders.This Question Belongs to Commerce >> Accounting
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Comments ( 2 )
Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Right answer (A) are the memorandum of association
On Memorandum of association, powers and limitations of company are listed. In AOA powers and limitations of comapny personnel are listed.