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 economics economic thoughts economics thoughts of great thinkers economic thinking economic thought

Which of the following is not the forms of Ownership, in the context of Principle of Ownership.

  1. Ownership with the private sector

  2. Formation of trust

  3. Formation of Capitalism

  4. Formation with the public sector
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Capitalism is an economic system, not a form of ownership within the context of Gandhian or social welfare principles, which typically focus on private, public, or trust-based ownership.

Multiple choice sectoral organisation of business private, public and global enterprises business studies

The company which is incorporated under a special royal charter issued by the king or head of the state is called _______.

  1. Statutory companies

  2. Registered companies

  3. Chartered company

  4. Cooperative organisation
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A royal charter is a formal document issued by a monarch as letters patent, granting a right or power to an individual or a body corporate. They were, and are still, used to establish significant organisations such as cities (with municipal charters) or universities and learned societies.

A corporate charter  simply referred to as "charter" or "articles of incorporation" is a written document filed with a U.S. state by the founders of a corporation detailing the major components of a company such as its objectives, its structure and its planned operations.

Multiple choice sectoral organisation of business private, public and global enterprises business studies

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

  1. Roosevelt

  2. Schumpeter

  3. Prof. Robson

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

According to President Roosevelt,- “It is clothed with the powers of the government but possessed of the flexibility and initiative of a private enterprise.” Public corporations are free to take quick decisions which is very necessary for the success of a business concern. There is no government interference. There is no rigidity in their working as in case of departmental undertakings. The flexibility is necessary in the case of business undertakings. Its management is vested in a Board of Directors, appointed or nominated by the Government. But there is no Governmental interference in the day-to-day working of the corporation.

Multiple choice sectoral organisation of business private, public and global enterprises business studies

The organization form of public sector enterprise does not include ______.

  1. departmental undertaking

  2. statutory (or public) corporation

  3. government company

  4. subsidiary to public company
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The subsidiaries remain private. They are private subsidiaries of a public company. 

Think about it if a subsidiary went public, that would mean that its shares were being offered to the public, instead of all being owned by the parent company, and so it would no longer be a subsidiary.

Multiple choice sectoral organisation of business private, public and global enterprises business studies

Accepting of deposits from public in case of private company is ____________.

  1. prohibited

  2. restricted

  3. acceptable

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

Companies borrow from various sources like banks and various other financial institutions. Whereas,Public Limited Companies borrow from mass public by accepting public deposits.

Private Companies are strictly prohibited from accepting any loan or deposits from the public. As per definition of Private limited Company as given under section 2 clause 68 of Companies Act, 2013. Private Company means a Company which by its articles prohibits any invitation to the public to subscribe for any securities of the company.

Multiple choice sectoral organisation of business private, public and global enterprises business studies

Every business undertaking is _______ entity.

  1. an independent

  2. a dependent

  3. a social

  4. none of above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Every business undertaking is an independent entity. It has its own assets and liabilities. It has its own way of functioning. The profits earned or losses incurred by one firm cannot be accounted for by any other firm. It has its own assets and liabilities. The debts owned by one undertaking cannot be recovered from any other undertaking.
Multiple choice sectoral organisation of business private, public and global enterprises business studies

In Private Company, member of the company is not less than_________.

  1. Seven

  2. Ten

  3. Two

  4. Eight
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Minimum 2 and maximum 200 members: A private company can have a minimum of just two members(but just one is enough if it a One Person Company), and maximum of upto 200 members. Transferability of shares restricted: Private companies cannot freely transfer their shares to the public like public companies.

Multiple choice sectoral organisation of business private, public and global enterprises business studies

Which of the following are kinds of companies?

  1. Private companies

  2. Producer companies

  3. Both (a) and (b)

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

A company is any entity that engages in business. Companies can be structured in different ways. For example, your company can be a sole proprietorship, a partnership, or a corporation. Depending on which different type of company you're dealing with, it may be owned by one person or a group of people.

Multiple choice sectoral organisation of business private, public and global enterprises business studies

Company's corporate personality was brought forward in the case of ___________________.

  1. Macaura V. Northan Assurance Co. Ltd

  2. Jons V. Lipman

  3. CIT V. Meenakshi Mills Ltd.

  4. Salomon V Salomon and Co. Ltd.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Salomon v Salomon & Co Ltd [1897] AC 22 (law cite link) was the case that got me interested in corporate law. The principle from the case is very simple - a company is a separate legal entity and thus a juristic "person" in the eyes of the law. Piercing the corporate veil refers to a situation in which courts put aside limited liability and hold a corporation's shareholders or directors personally liable for the corporation's actions or debts. Veil piercing is most common in close corporations.

Multiple choice business organisation management - process or functions, managerial role and levels levels of management management - process and levels functions and levels of management

Owner group is represented as _______.

  1. administrators

  2. managers

  3. auditors

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Owner group is represented as administrators. Administrators are responsible to make plans and strategies for carrying out all the activities in the organization. Adminstrators ensure that organizational goals are achieved in an efficient manner.