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 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.

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

Every company needs company secretary. So in the case of sec 25 companies the same is the case. Do you agree with this statement?

  1. Agree

  2. Disagree

  3. Sec. 25 companies are not companies so no need of company secretary

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

The company secretary is responsible for the efficient administration of a company, particularly with regard to ensuring compliance with statutory and regulatory requirements and for ensuring that decisions of the board of directors are implemented. Despite the name, the role is not clerical or secretarial.

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

Company secretary has duties under__________.

  1. Income tax Act.

  2. Companies Act.

  3. Indian stamp Act.

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

The company secretary has to follows the rules and check that the company complies with the law under :

  1. Income tax act
  2. Companies act
  3. Indian stamp act

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

_____ is a voluntary association of persons who work together to promote their economic interest.

  1. Sole proprietorship

  2. Company

  3. Co-partnership

  4. Co-operative
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A cooperative is defined as a voluntary association of individuals who join together to achieve common economic goals through mutual help.

Multiple choice commercial studies sources of business finance - 2 preference shares equity and preference shares equity shares and preference shares

A closely held company is:

  1. When most of the controlling management and shareholders are same.

  2. When only are person has all the shares

  3. A registration of companies

  4. Both A & B
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A closely held corporation is any company that has only a limited number of shareholders; its stock is exchanged only infrequently but is often listed on public exchanges. Most of the controlling management and shareholders are same. 

Multiple choice commercial studies sources of business finance - 2 preference shares equity and preference shares equity shares and preference shares

A shareholder who can vote conditionally is a/an __________.

  1. equity shareholder

  2. preference shareholder

  3. member

  4. none of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
The preference shareholders enjoy a preferential position over equity shareholders in two ways, receiving the fixed rate of dividend, receiving their capital after claims of the company's creditors is settled. Preference shareholders generally do not enjoy any voting rights but can vote conditionally.
Multiple choice commercial studies sources of business finance - 2 preference shares equity and preference shares equity shares and preference shares

Preference share holders have a right to vote on every resolution of a company.

  1. True

  2. False

  3. Partly True

  4. Partly False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
As per section 47 of companies act,2013, Every member of company who is holding any preferential share capital (Preference shareholders) shall in respect of such capital have right to vote only on-
1. Resolutions placed before company which directly affects rights attached to their shares(preference), and
2. Any on resolution for winding-up of the company.
Multiple choice elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business
Before the Annual General Meeting the secretary has to draft the annual/directors report.

  1. True

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

True, the duties of the secretary before the annual general meeting is to prepare the annual report of all the directors in consultation with the chairman .

Multiple choice elements of business fundamentals of business activities factors affecting business interrelationship between industry, commerce and trade other aspects of a business

_________ is the statement which defines the goals of company.

  1. Mission

  2. Vision

  3. Business Module

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

Vision statement is a statement that defines what company is and what it does whereas the main purpose of mission statement is to get across the ambitions of an organisation in short.

Multiple choice commercial applications public sector enterprises role of government and development policies government companies government and taxes

The Registrar of Companies is appointed by the Central Government.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Sub-section 75 of Section 2 of the Companies Act 2013 defines "Registrar" as : "Registrar" means a Registrar, or an Additional, a Joint, a Deputy or an Assistant Registrar, having the duty of registering companies under this Act (i.e. the companies act 2013). 
With the power vested under section 396 of the companies act 2013 (earlier section 609 of the companies act 1956), the Central Govt. appoints Registrars, and Additional, Joint, Deputy and Assistant Registrars for various States and Union Territories in India. 
Apart from the primary duty of registering companies incorporated in the respective states and the Union Territories, ROC’s are also responsible for ensuring that the Companies comply with statutory requirements under the said Act.
Multiple choice commercial applications public sector enterprises role of government and development policies government companies government and taxes

For the administration of the Companies Act, the main body set up by the central government is the Company Law Board.

  1. True

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

An Act to consolidate and amend the law relating to companies. The Companies Act 2013 is an Act of the Parliament of India on Indian company law which regulates incorporation of a company, responsibilities of a company, directors, dissolution of a company.

Multiple choice commercial applications public sector enterprises role of government and development policies government companies government and taxes

The full time officer appointed by the Central Government for the administration of the company law in each state is the Registrar of companies.

  1. True

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

It is true that Registrar of companies is a full time officer appointed by the Central Government for the administration of the company law in each state. There are 22 registrar of companies operating from offices in all major states of India. 

Multiple choice commercial applications public sector enterprises role of government and development policies government companies government and taxes

Official Liquidator is appointed by the Central Government under section 448 of the Companies Act, 1956.

  1. True

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

For the purposes of this Act, so far as it relates to the winding up of companies by the Tribunal, the Central Government may appoint as many Official Liquidators, Joint, Deputy or Assistant Official Liquidators as it may consider necessary to discharge the functions of the Official Liquidator. The liquidators so appointed under this section shall be whole-time officers of the Central Government. The salary and other allowances of the Official Liquidator, Joint Official Liquidator, Deputy Official Liquidator and Assistant Official Liquidator shall be paid by the Central Government.

Multiple choice commercial applications public sector enterprises role of government and development policies government companies government and taxes

Registrar of companies is a full time officer appointed by the Central Government for the administration of the company law in each state.

  1. True

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

It is true that Registrar of companies is a full time officer appointed by the Central Government for the administration of the company law in each state. There are 22 registrar of companies operating from offices in all major states of India.