Stakeholders in commercial organisation - class-XI

Question 1 Multiple Choice (Single Answer)

In a company person making investment are called _____.

partners
members
shareholders
contributors

Question 2 Multiple Choice (Single Answer)

As a stakeholder, Government expects ________.

Quality goods at reasonable prices
More and more non-monetary benefits
The company to pay taxes promptly and is environment friendly
All of the above

Question 3 Multiple Choice (Single Answer)

External stakeholders get influenced by the company's activity.

True
False

Question 4 Multiple Choice (Single Answer)

Which of the following represent Executive Managers as internal stakeholders of a company?

Managers
Auditor
CEO or CFO
All of the above

Question 5 Multiple Choice (Single Answer)

Only a company, which is limited by shares have shareholders. Whereas every company or organization have stakeholders.

True
False

Question 6 Multiple Choice (Single Answer)

Responsibility of the company towards internal stakeholders is _____.

Secondary
Primary
Additional
Optional

Question 7 Multiple Choice (Single Answer)

For meeting the expectations of the stakeholders, the key aspect(s) is/are ________.

Providing value to the stakeholders on a regular basis
Defining the requirements out of projects clearly before they begin
Execute the project towards its objective for being successful
All of the above

Question 8 Multiple Choice (Single Answer)

The survival of any business can be directly linked to the ability of business to retain its customers. This is because ______________________.

Customers look beyond the intrinsic product quality attributes
It is mandated by Law that companies take care of customer loyalty
Customers are the one and only factor that bring profits or losses to a business
None of the above

Question 9 Multiple Choice (Single Answer)

As profits increase, more and more non-monetary benefits are expected by which of the following stakeholders?

Government
Creditors
Debtors
Employees

Question 10 Multiple Choice (Single Answer)

Among the stakeholders, shareholder mainly focuses on ___________________.

Performance of the company
Return on Investment
Appointment of Auditors
Managing customers

Question 11 Multiple Choice (Single Answer)

A customer is an individual who receives or purchases a product or service. While a stakeholder is an individual, group, or organization who is affected by the outcome of a product or service.

True
False

Question 12 Multiple Choice (Single Answer)

Directors can be sued by stockholders, if they have __________.

declared unlawful dividends
grossly neglected the interests of stockholders
Either (a) or (b)
None of the above

Question 13 Multiple Choice (Single Answer)

When a shareholder wants to rematerialize his shares he should write to _____________.

DP
company
registered office of the company
bank where his DP account is

Question 14 Multiple Choice (Single Answer)

Generally, a shareholder is a stakeholder of the company while a stakeholder is not necessarily a shareholder.

True
False

Question 15 Multiple Choice (Single Answer)

If authorized by the____________ a company may received from a shareholder the amount remaining unpaid on shares, even though the amount has not been called up which is known as calls-in-advance.

Memorandum of Association (MOA)
Articles of Associtaion (AOA)
Prospectus
Securities Exchange Board of India.

Article of Association(AOA):-

The Articles of Association or AOA are the legal document that along with the memorandum of association serves as the constitution of the company. It is comprised of rules and regulations that govern the company’s internal affairs.

The articles of association are concerned with the internal management of the company and aims at carrying out the objectives as mentioned in the memorandum. These define the company’s purpose and lay out the guidelines of how the task is to be carried out within the organization.

The articles of association cover the information related to the board of directors, general meetings, voting rights, board proceedings, etc.

The articles of association are the contracts between the shareholders and the organization and among the shareholder themselves. This document often defines the manner in which the shares are to be issued, dividend to be paid, the financial records to be audited and the power to be given to the shareholders with the voting rights.

The articles of association can be considered as the user manual for the organization that comprises of the methodology that can be used to accomplish the company’s day to day operations. This document is a binding on the shareholders and the organization and has nothing to do with the outsiders. Thus, the company is not accountable for any claims made by any external party.

The articles of association is comprised of following provisions:

• Share capital, call of share, forfeiture of share, conversion of share into stock, transfer of shares, share warrant, surrender of shares, etc.

• Directors, their qualifications, appointment, remuneration, powers, and proceedings of the board of directors meetings.

• Voting rights of shareholders, by poll or proxies and proceeding of shareholders general meetings.

• Dividends and reserves, accounts and audits, borrowing powers and winding up.

It is mandatory for the following types of companies to have their own articles:

1. Unlimited Companies: The article must state the number of members with which the company is to be registered along with the amount of share capital, if any.

2. Companies Limited by Guarantee: The article must define the number of members with which the company is to be registered.

3. Private Companies Limited by Shares: The private company having the share capital, then the article must contain the provision that, restricts the right to transfer shares, limit the number of members to 50, prohibits the invitation to the public for the further subscription of shares in the form of shares or debentures.

Question 16 Multiple Choice (Single Answer)

A shareholders is a _________ of a company.

owner
employee
promoter
none of the above

Question 17 Multiple Choice (Single Answer)

Which of the following letter is sent to the share holders whenever an amount becomes payable on shares?

Share Application Letter
Share Allotment Letter
Share Call Letter
None of above

Question 18 Multiple Choice (Single Answer)

Receiving dividends is a group right of share holders.

True
False
Partly True
Partly False

Stakeholders in commercial organisation - class-XI

Questions