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 business organisation and correspondence middlemen 2 - retailer types of retail organisation types of retailing retail trade

The accounts of cooperative stores are audited for ____________.

  1. registrar of companies

  2. manager of the store

  3. registrar of cooperative societies

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

A co-operative society is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.

Multiple choice business organisation and correspondence middlemen 1 - wholesaler characteristics, necessity, services and survival of a wholesaler the characteristics of wholesalers wholesalers characteristics of wholesale trade kinds of mercantile agents or agent middlemen

Which of the following is a non-trading association?

  1. Company

  2. Partnership firm

  3. Club

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

Non-Trading Organizations. A business concern is an organization involved in activities of buying or selling goods and services with a view of making a profit. There are associations, clubs or societies which are not formed for the purpose of making profit. These are called non-trading organizations..

Multiple choice commerce discharge and breach of a contract discharge of contract performance, discharge, breach and remedies of contract business law and contract act

X bought shares in a Company on the faith of a prospectus that contained an untrue statement as to the Directorship of J. X had never heard of J and hence such statement was immaterial from his view point. X claimed damages for fraud. His claim will be dismissed on the ground that ______.

  1. there was no fraud at all

  2. fraud in Company Prospectus is not covered by Indian Contract Act

  3. the untrue statement had not induced him to buy the shares

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

For a claim of fraud to succeed, the misrepresentation must have induced the party to enter into the contract. If the statement was immaterial to the party, there is no inducement, and the claim fails.

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

 The organisations which are set up for providing service are called as _____.

  1. Profit organisations

  2. Not-for-profit organisations

  3. Sole trader

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

The organisations which are set up for providing services are called as not-for-profit organisations. They are set up for purpose other than profit for promoting science, religion, social cause etc. Hence, the organisation meant for a social cause are categorized as Not-for-profit organisation. 

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

Not-for-Profit organisations refer to the organisations that are used for the welfare of the _________ and are st up as charitable institutions which function without any profit motive.

  1. company

  2. society

  3. manager

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

The not-for-profit organisations are the ones which are responsible for the welfare of society and are a type of places which run without considering the profit. This type of organisation is funded mainly by the donations given by people and in return they are obliged to take care of the welfare of the society.  

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

Which of the following is generally considered as a non-profit oriented organization ?

  1. Charitable organization

  2. Corporation

  3. Audit firms

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

A Charitable organisation is an organization whose main objective is social well being. Charitable organisations often depend on donations. Corporation, Audit firms and Insurance companies work for profit motive. They can not be considered as Non- profit organizations. 

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

The affairs of the not-for-profit organisations are usually managed by a managing/executive committee elected by its _______.

  1. members

  2. owners

  3. shareholders

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

b'

Not for Profit organisations are formed for providing service to specific group or public at large such as education, health care, sports and so on. These are organised as charitable trusts/ societies and subscribers to such organisations are called members. These organisations have service as the main objective. Normally these organisations do not undertake any business activity and are managed by trustees/executive committee. these committee is elected by its members.

'

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

Not-for-Profit organisations affairs are usually managed by ________.

  1. manager committee

  2. employees committee

  3. executive committee

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

b'Not for Profit organisations are formed for providing service to specific group or public at large such as education, health care, sports and so on. These are organised as charitable trusts/ societies and subscribers to such organisations are called members. 

These organisations have service as the main objective. Normally these organisations do not undertake any business activity and are managed by trustees/executive committee. They also have to maintain proper accounts and prepare financial statements. '

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

A not-for-profit entity has all of the following characteristic except that it will ______________.

  1. operate for purposes other than to provide goods or service at a profit

  2. not have a positive fund balance

  3. not possess ownership interests like a corporation

  4. receive significant contributions from providers who do not expect returns.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

As the name suggest not-for-profit entity works to provide social services and doesn't relate any of its activity with profit.


A positive fund balance is obtained when the entity earns profits due an economic transaction. Since, the company is not involved in any kind of profit and hence it will not have a positive fund balance.

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

Not-for-profit organisations are organised as charitable trusts and subscribers to such organisation are called _________.

  1. owners

  2. members

  3. shareholders

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

b'

Not for Profit organisations are formed for providing service to specific group or public at large such as education, health care, sports and so on. These are organised as charitable trusts/ societies and subscribers to such organisations are called members. These organisations have service as the main objective. Normally these organisations do not undertake any business activity and are managed by trustees/executive committee. They also have to maintain proper accounts and prepare financial statements. 

'

Multiple choice book keeping and accountancy accounts of 'not for profit' concerns accounting record of non-trading organisations features of not-for-profit organisation meaning and characteristics of not-for-profit organisation

Non-profit earning companies are mostly formed as ______________.

  1. Companies limited by shares

  2. Companies limited by guarantee

  3. Unlimited companies

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

Limited by guarantee companies are formed by not for profit organisations, such as sports clubs, charitable organisations etc. A company limited by guarantee does not have any shares or stakeholders but is owned by guarantors who agree to pay a set amount of money towards company debts. In case of NPO, this amount is known as subscription. Each member is responsible towards NPO till the subscription amount only. 

Multiple choice introduction of business laws business law and contract act business studies

Damodar Valley Corporation is ___________.

  1. company formed under Companies Act

  2. company formed under Special Act of Parliament

  3. a co-operative society

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

The Damodar Valley Corporation (DVC) is a governmental organization which operates several power stations in the Damodar River area of West Bengal and Jharkhand states of India.It was formed through a special legislation in the Indian Parliament in 1948 through DVC Act of 1948.

Multiple choice organisation of commerce and management government organisation statutory/public corporations meaning and features of public corporation statutory corporations

Food co-operation of India is ________.

  1. a joint stock company

  2. company managed by department

  3. company established by Special Act of Parliament

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

Food co-operation of India was set up on 14th January, 1965. It is regulated by the food co-operation act, 1964. Hence, food co-operation of India is company established by special act of parliament.

Multiple choice commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

The objects and powers of a statutory corporation ______.

  1. may not change

  2. may not be changed easily

  3. may change easily

  4. none applicable
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is very difficult to form statutory corporations because it requires lengthy documentation, complicated formalities and passing of statue.The policies once approved, the statue once passed cannot be changed easily. It can be done by the parliament only and this is very time consuming.

Multiple choice commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

Which of the following function can a statutory corporation perform?

  1. Acquire property on its own name

  2. Enter into contract

  3. Get sued or can sue

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

A statutory corporation is a body corporate and can sue and be sued, enter into contract and acquire property in its own name.