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 commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

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

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Only a company, which is limited by shares have shareholders. Whereas every company or organization have stakeholders. This is a true statement since stakeholders refer to any individual or organization who have interest or concern regarding the business.

Multiple choice commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

Responsibility of the company towards internal stakeholders is _____.

  1. Secondary

  2. Primary

  3. Additional

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

Responsibility of the company towards internal stakeholders is primary since internal stakeholders are entities within the business organization. For example: employees, managers, etc.

Multiple choice commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

Among the stakeholders, shareholder mainly focuses on ___________________.

  1. Performance of the company

  2. Return on Investment

  3. Appointment of Auditors

  4. Managing customers
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Among the stakeholders, shareholder mainly focuses on Return on Investment. ROI refers to the proportionate return on the capital employed by the investors.

Multiple choice commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

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

  1. declared unlawful dividends

  2. grossly neglected the interests of stockholders

  3. Either (a) or (b)

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

Stockholders can initiate legal action against directors for breaches of fiduciary duty, which includes actions like declaring unlawful dividends or gross negligence in managing company interests.

Multiple choice commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

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

  1. DP

  2. company

  3. registered office of the company

  4. bank where his DP account is
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When a shareholder wants to rematerialize his shares he should write to depository participant.In dematerialization of shares depository participant  passes the physical shares to company for making it into electronic form. Depository participant refers to the agent between depository and investors

Multiple choice commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

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

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Generally, a shareholder is a stakeholder of the company while a stakeholder is not necessarily a shareholder. Stakeholders include employees, managers, officials, customers etc. Stakeholders involve those individuals or organization who are not the owners only.

Multiple choice commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

A shareholders is a _________ of a company.

  1. owner

  2. employee

  3. promoter

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

A shareholders is an owner of a company since they own the shares of stock of a company. They are also known as the members of the corporation.

Multiple choice function, distinction and objectives of chambers of commerce role of chambers of commerce & industry and trade associations internal trade commerce business studies

Write down the full form of FICCI.

  1. Federation of Indian Chamber of Companies and Industry

  2. Federation of Indian Chamber of Commerce and Industry

  3. Federation of International Chamber of Commerce and Industry

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

The Federation of Indian Chambers of Commerce and Industry is an association of business organisations in India. Established in 1927, on the advice of Mahatma Gandhi by GD Birla and Purushottam Das Thakurdas, it is the largest, oldest and the apex business organisation in India.

Multiple choice organization of commerce and management cooperative organisation features, organisation, advantages and disadvantages of cooperative organisation cooperative societies cooperative society introduction to huf joint hindu family business

AMUL is a __________.

  1. company

  2. co-operative society

  3. co-operation

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

AMUL (Anand Milk Union Limited) is a well-known Indian dairy cooperative society based in Gujarat.

Multiple choice organization of commerce and management cooperative organisation features, organisation, advantages and disadvantages of cooperative organisation cooperative societies cooperative society introduction to huf joint hindu family business

Feature(s) of a public corporation is/are ___________________________.

  1. It is genearlly not exempt from the rigid rules applicable to the expenditure of public funds.

  2. A public Corporation is managed by board of directors who are appointed by the public financial institutions.

  3. The primary motive of the corporation is public service rather than private profits.

  4. All of above.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Public corporations are established by special acts of parliament to provide essential services to the public, prioritizing service over profit generation.

Multiple choice organization of commerce and management cooperative organisation features, organisation, advantages and disadvantages of cooperative organisation cooperative societies cooperative society introduction to huf joint hindu family business

The co-operative society has perpetual succession because it is not affected due to ________________.

  1. Death of any member

  2. Insolvency of any member

  3. Lunacy of any member

  4. Any of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A cooperative society is a separate legal entity. Its existence is independent of the status of its members, meaning it continues regardless of death, insolvency, or lunacy of any member.

Multiple choice organization of commerce and management cooperative organisation features, organisation, advantages and disadvantages of cooperative organisation cooperative societies cooperative society introduction to huf joint hindu family business

In case of co-operative society, no member detects the terms and conditions of the functioning because "_________" is the thumb rule.

  1. One man two vote

  2. One man one vote

  3. Two man one vote

  4. No man no vote
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The fundamental principle of a cooperative society is democratic control, which is expressed as one man, one vote, regardless of the amount of capital contributed.

Multiple choice organization of commerce and management joint hindu family business and cooperative society cooperative organisation features, organisation, advantages and disadvantages of cooperative organisation cooperative societies introduction to huf

Which of the following are examples of "Producers Co-operative Society"?
(1)   APPCO
(2)  Kendriya Bhandar  
(3)  Apna Bazar 
(4)  Haryana Handloom 
(5)  Gujarat Co-operative Milk Marketing 
       Federation
(6)  Employee's Housing Societies 
The correct answer is :-

  1. (1), (2), (3) & (6)

  2. (1), (3) & (5)

  3. (2), (4) & (6)

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

APPCO (Andhra Pradesh State Handloom Weavers Cooperative Society) and Haryana Handloom are examples of producer cooperatives, as they assist in the production and marketing of handloom goods.

Multiple choice organization of commerce and management joint hindu family business and cooperative society cooperative organisation features, organisation, advantages and disadvantages of cooperative organisation cooperative societies introduction to huf

Amongst all of the following which statements about co-operative business organizations is true?

  1. All co-operative are only for public sector

  2. Profits are shared equally amongst members

  3. They are owned by government

  4. Workers have no say in decision making
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A key feature of cooperative societies is that surplus or profit is distributed among members based on their participation or patronage, rather than just capital investment.

Multiple choice organization of commerce and management joint hindu family business and cooperative society cooperative organisation features, organisation, advantages and disadvantages of cooperative organisation cooperative societies introduction to huf

What is corporate personality?

  1. Corporate personality means that the members in general meeting are regarded by the law as a person.

  2. Corporate personality means that the board of directors is regarded by the law as a person.

  3. Corporate personality means that the company as an entity is regarded by the law as a person.

  4. Corporate personality means that all of the companies within a corporate group are regarded by the law as one person.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Corporate personality is the fact stated by the law that a company is recognized as a legal entity distinct from its members. A company with such personality is an independent legal existence separate from its shareholders, directors, officers and creators. This is famously known as the veil of incorporation.