Commerce Accountancy · Law Legal Studies

Business Organizations and Corporate Governance

1,402 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

Who are the real owners of Private Sector Companies among the followings?

  1. The government

  2. Shareholders

  3. Employees

  4. The community
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Any person, company, or other institution that owns at least one share in a company. A shareholder may also be referred to as a stockholder. Shareholders are the owners of a company. They have the potential to profit if the company does well, but that comes with the potential to lose if the company does poorly.

Multiple choice

The sub-agent is responsible to

  1. the principal

  2. the agent

  3. both the principal and the agent

  4. none of these

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 The sub-agent is responsible to the agent for his acts as he is appointed by the agent so it is right answer here.

Multiple choice

Pocket payment involves payment to

  1. managers

  2. promoters

  3. directors

  4. shareholders

  5. outsiders
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Pocket payment (or out-of-pocket cost) refers to costs that require immediate cash payment to external parties, such as suppliers or service providers.

Multiple choice

The SEBI Committee on Disclosures and Accounting Standards (SCODA) was in news recently for submitting its recommendations. Which of the statements about SCODA are correct? I.          Noted Chartered Accountant Y. H. Malegam T N Manoharan, president of ICAL was Chairman of the SCODA II.         SCODA has recommended mandatory rotation � every three years � of the partners of' the audit firms signing the accounts of a listed company. III.        SCODA has recommended that shareholders' approval be obtained for appointment of the accounting firm a company wishes to appoint

  1. I only

  2. I and II only

  3. III only

  4. I and III only
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Noted Chartered Accountant Y. H. Malegam was Chairman of SEBI Committee on Disclosures and Accounting Standard. SCODA has recommended mandatory rotation � every five years � of the partners of the audit firms signing the accounts of a listed company.

Multiple choice

What is the full form of CLB?

  1. Communities law board

  2. Company law board

  3. Constitutional law board

  4. Committee law board
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Company law board

Multiple choice

Through the 1800s, the form of the corporation took shape in an elaborate dance of wills. Entrepreneurs, torn between building legacies and extracting cash, led the dance; state legislators, torn between attracting corporations and limiting their power, followed. Abuses of corporate will led to new prohibitions, which sent businessmen scurrying for new ways to get around them. New types of technological webs bound the country: railroads, steamships, electric power, telegraph and telephone lines. The newly invented rotary press enabled printers to put out 100,000 copies of a magazine; this, in turn, allowed national advertising to sprout, which made it profitable for consumer product giants to build brands.

What is the underlying theme of the passage?

  1. The passage describes an idea and elaborates the same.

  2. The passage analyses various facets of corporate culture.

  3. The passage is a methodical description of an evolutionary process.

  4. The passage describes how MNCs dominate human life.

  5. The passage explains how individual traders turned themselves into corporates.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The passage is a description of the evolution of the corporate culture over the past two centuries. 

Multiple choice

A firm does not enjoy

  1. limited liability

  2. perpetual succession

  3. transferability of shares

  4. all of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The firm does not enjoy perpetual succession. The joint stock company enjoys all these features.

Multiple choice

A minor can never become

  1. a shareholder

  2. an agent

  3. a principal

  4. both (1) and (3)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A minor can neither become a shareholder nor a principal However, he can be an agent.