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Commerce · Q211

Legal Aspects of Business

Graduate and Post Graduate · Commerce · question 211

Q211

Consider the following statements: Assertion (A): The number of members in a company is 20 and hence the company is a private company. Reason (R): According to the Companies Act, 1956 a private company is one, the number of members of which does not exceed 50.

A.
Both A and R are true and R is the correct explanation of A
B.
Both A and R are true but R is not correct explanation of A
C.
Both A and R do not present the whole truth
Answer
D.
Both A and R are false

Answer: Option C

Solution

Answer: Option C
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