Distinction between private and public companies - class-XI

Question 1 Multiple Choice (Single Answer)

A private company does not issue prospectus.

True
False

Question 2 Multiple Choice (Single Answer)

A private company can adopt Table 'A' in place of its Articles.

True
False

Question 3 Multiple Choice (Single Answer)

Minimum no. of directors in case of private company is ________.

1
2
3
4

Question 4 Multiple Choice (Single Answer)

Select out the feature which is NOT found in a private limited company?

Raising capital for the business is easier
Shares can be bought and sold on the Stock Exchange
Subscribers of the business have limited liability
The business continues after the death of shareholders

Question 5 Multiple Choice (Single Answer)

Which of the following statements about most public limited companies is true?

They are owned and controlled by the employees
They are owned by the directors but controlled by the shareholders
The are owned by shareholders but controlled by directors
They are owned and controlled by the promoters

Question 6 Multiple Choice (Single Answer)

Which of the following statements suits best to private limited company?

It is owned by the government
It is owned by shareholders who can sell their shares in the Stock Exchange
It is formed for the benefit of society at large
Its accounts can be kept private and it receives little coverage in the business

Question 7 Multiple Choice (Single Answer)

Out of these which statement is true?

Both private and public companies need one director
Private companies need two directors but public companies need 3
Private companies need one directors but public companies need two
Both private and public companies need two directors

Question 8 Multiple Choice (Single Answer)

In the words of " _______ "a public Corporation is an organization that is clothed with the power of the government, but is possessed with the flexibility and initiative of private enterprise."

Roosevelt
Schumpeter
Prof. Robson
Ronaldo

Question 9 Multiple Choice (Single Answer)

Every listed public company shall have at least __________ of the total number of directors as independent directors.

One-fourth
Two-third
One-third
Three-fourth

Question 10 Multiple Choice (Single Answer)

The maximum number of members in a private limited company is ________________.

$10$
$25$
$50$
Unlimited

Question 11 Multiple Choice (Single Answer)

Which of the following companies must appoint woman director ?
(I) Listed Company
(II) Every public company having paid up share capital of Rs.100 Crores or more as on the last date of latest audited financial statements.
(III) Every public company having borrowing of Rs.500 Crores or more as on the last date of latest audited financial statements.
(IV) Every other public company having net capital employed of Rs.500 Crores or more as on the last date of latest audited financial statements.
(V) Every public company having turnover of Rs.300 crore or more as on the last date of latest audited financial statements.
Select the correct answer from the options given below -

(I), (II), & (V) of the above
(II), (III), & (IV) of the above
(I) & (III) of the above
(I), (II), (III) & (IV) of the above

Question 12 Multiple Choice (Single Answer)

A company which can start a business after getting the certificate of incorporation is a ____________.

private company
public company
joint stock company
none of these

Question 13 Multiple Choice (Single Answer)

Private company need not hold the __________ .

Statutory meeting
Annual general meeting
Extra-ordinary general meeting
All of above

Question 14 Multiple Choice (Single Answer)

State the following statement is True or False:

The private company need not hold the statutory meeting.

True
False

Question 15 Multiple Choice (Single Answer)

Select the correct option given below:

The quorum for general meeting of a private company according to the Companies Act, 1956 is _______.

2
3
7
10

Question 16 Multiple Choice (Single Answer)

Write a word, term or a phrase which can substitute each of the following statements:
____________ quorum required for extra-ordinary general meeting of private company.

Two members
Three members
Five Members
Ten members

Question 17 Multiple Choice (Single Answer)

Fill in the Blanks:

A private company must have at least _________ Directors.

one
two
three
four

Question 18 Multiple Choice (Single Answer)

Select out the feature which is NOT found in a private limited company?

Raising capital for the business is easier.
Shares can be bought and sold on the Stock Exchange.
Subscribers of the business have limited liability
The business continues after the death of shareholders

Question 19 Multiple Choice (Single Answer)

Which of the following statements suits best to private limited company?

It is owned by the government
It is owned by shareholders who can sell their shares in the stock exchange
It is formed for the benefit of society at large
Its accounts can be kept private and it receives little coverage in the business

Question 20 Multiple Choice (Single Answer)

Which of the following statement is true?

Both private and public companies need one director
Private companies need two directors but public companies need 3
Private companies need one director but public companies need two
Both private and public companies need two directors

Question 21 Multiple Choice (Single Answer)

What is the disadvantage of a public corporation?

No legal entity
Excessive accountability
Lack of availability of managerial talent
No financial autonomy

Question 22 Multiple Choice (Single Answer)

Private corporation are owned by _______.

private firm
individual owner
government & local govt
none of the above

Question 23 Multiple Choice (Single Answer)

For public company is should start business only after getting certificate of _______________.

Incorporation
Certificate of Commencement of business
Both
None of these

Question 24 Multiple Choice (Single Answer)

It is required that Public Ltd. Co. should hold the statutory meeting just after getting certificate of commencement.

No, can hold after 6 months.
Yes
No, can hold within 6 months
No

Question 25 Multiple Choice (Single Answer)

Private company can allot shares without receiving minimum subscription

Yes
No
Unknown
None of the above

Question 26 Multiple Choice (Single Answer)

Minimum no of members to be present for a Public Ltd. company meeting is ___________.

5
2
7
3

Question 27 Multiple Choice (Single Answer)

State the following statement is True or False:
A public company can commence (start) its business only after obtaining the trading certificate.

True
False

Question 28 Multiple Choice (Single Answer)

Legal controls, restrictions are more & strict on public companies ____________.

True
False
Not relevant
Nothing applicable

Question 29 Multiple Choice (Single Answer)

State the following statements is True or False.

Every public company must hold a statutory meeting.

True
False

Question 30 Multiple Choice (Single Answer)

The statutory meeting is compulsory for a public company .

True
False

Question 31 Multiple Choice (Single Answer)

Select the correct option given below:

The quorum for general meeting of a public company according to the Companies Act, 1956 is _______.

2
5
8
10

Question 32 Multiple Choice (Single Answer)

State the following statement is True or False:

Before the statutory meeting the secretary has to draft the statutory report.

True
False

Question 33 Multiple Choice (Single Answer)

State the following statements is True or False:

The first general meeting of a public company is the Statutory meeting.

True
False

Question 34 Multiple Choice (Single Answer)

Fill in the blanks:

A public company must publish ________ for raising capital.

prospectus
articles of association
memorandum of association
None of these

Question 35 Multiple Choice (Single Answer)

In a public company there should be at least __________ Directors.

two
three
four
five

Question 36 Multiple Choice (Single Answer)

A company which has at least three Directors is a _______.

private company
public company
government organisation
None of these

Question 37 Multiple Choice (Single Answer)

Many private limited companies convert into public limited companies because _____.

they do not want to change their business
they want to gain the benefits of limited liability
they want to get guarantee from its members
they want to raise additional capital to expand the business

Question 38 Multiple Choice (Single Answer)

Which of the following statement about most public limited companies is true?

They are owned and controlled by the employees
They are owned by the directors but controlled by the shareholders
They are owned by shareholders but controlled by directors
They are owned and controlled by the promoters

Question 39 Multiple Choice (Single Answer)

Minimum paid up share capital in case of a public company is _______.

1 Lakh
3 Lakhs
5 Lakhs
7 Lakhs

Question 40 Multiple Choice (Single Answer)

Maximum no. of members in case of public company is _________.

0
Unlimited
50
100

Question 41 Multiple Choice (Single Answer)

The maximum number of members in a public company are _____.

$20$
$50$
$70$
There is no limit

Question 42 Multiple Choice (Single Answer)

Which one of the following statements in respect of a public limited company is correct?

There can be less than 7 members.
The convent of directors and their contract to purchase qualificationshares, if any, required must be filed.
Remuneration of directors is not controlled by any provision of companies Act
None of the above

Distinction between private and public companies - class-XI

Questions