Commerce Accountancy · Law Legal Studies

Business Organizations and Corporate Governance

1,376 Questions

Business organizations and corporate governance explore company structures, stakeholder responsibilities, and regulatory frameworks under the Companies Act. These commerce topics are essential for Chartered Accountancy, company secretary exams, and banking probationary officer assessments. Practice these questions to master corporate formation, director roles, and business ownership types.

Companies Act 2013 provisionsCorporate stakeholder rolesPrivate limited company rulesDebenture holder rightsCompany incorporation rulesState-owned enterprises

Business Organizations and Corporate Governance Questions

Multiple choice

Alternate directors are appointed by the ___________.

  1. Board of Directors

  2. Promoters

  3. Underwriters

  4. Shareholders
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Board of Directors of a company may, if so authorised by its articles or by a resolution passed by the company in general meeting, appoint a person, not being a person holding any alternate directorship for any other director in the company, to act as an alternate director for a director during his absence for a period of not less than three months.

Multiple choice

Which of the following charges, in case of a company, does not require to be registered u/s 125 of Companies Act?

  1. A charge on book debts of the company

  2. A floating charge on stocks of the company

  3. A charge on immovable property of the company

  4. A charge relating to contingent liabilities of the firm like letter of credit bank guarantee
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Section 125 of Companies Act applies to the charges like: a charge for the purpose of securing any issue of debentures a charge on uncalled share capital of the company a charge on any book debts of the company a charge, not being a pledge, on any movable property of the company a floating charge on the undertaking or any property of the company including stock-in-trade a charge on calls made but not paid etc. However, a charge relating to contingent liabilities of the firm like letter of credit bank guarantee is not under this section.

Multiple choice

The term MoU in business means

  1. Merger or Undertaken

  2. Memorandum of Utility

  3. Memorandom of Understanding

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

MoU stands for Memorandum of Understanding, a formal agreement between two or more parties outlining the terms of a relationship or transaction. It's a precursor to a binding contract but still carries significant weight in business, government, and diplomatic contexts. It's not 'Merger or Undertaken' or 'Memorandum of Utility' - those are incorrect expansions.