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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 elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

Multinational Corporation can be defined as a firm which____________.

  1. is having all the government benefits of the origin country

  2. is counted amongst the biggest industries in the host country

  3. owns companies in more than one country

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

MNC is a company that owns or controls production in more than one nation. MNCs set up their branches and factories for production in regions where they can get cheap labor and other resources.

Multiple choice elements of business multi national corporations advantages and disadvantages of mncs meaning and definition multinational companies - meaning and features

Ford, Toyota, Honda and Volkswagen, oil companies like Shell, BP and Exxon Mobil, technology companies like Dell, Microsoft, Hewlett Packard and Canon and food and drink companies such as Coca Cola and McDonalds can be classified as __________.

  1. Statutory corporation

  2. Multinational corporation

  3. Public sector corporation

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

A multinational corporation or worldwide enterprise is a corporate organization which owns or controls production of goods or services in at least one country other than its home country.

Multiple choice elements of business large scale retail trade forms of large scale retail stores types of retail organisation types of retailing

Each retail shop in case of chain stores is under the direct control of the ____________.

  1. head office

  2. branch manager

  3. inspectors

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

In the context of chain stores, each individual retail outlet is typically managed by a branch manager who reports to the head office.

Multiple choice elements of business large scale retail trade forms of large scale retail stores types of retail organisation types of retailing

Name a large shop retailer that is generally formed as a Joint stock company managed by a board of directors.

  1. Chain stores

  2. Departmental Stores

  3. Mail order houses

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

Departmental stores are large-scale retail organizations that are typically structured as joint stock companies. They are managed by a board of directors and offer a wide variety of goods under one roof.

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

If the rights of a particular class of share holders is to be changed then the company should call __________.

  1. shareholders meeting

  2. directors

  3. class meetings

  4. preference shareholder meeting
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A company is an association of several persons. Decisions are made according to the view of the majority. Class meetings are meetings which are held by holders of a particular class of shares, e.g., preference shareholders. Such meetings are normally called when it is proposed to vary the rights of that particular class of shares.

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

For a guarantee company the liability of shareholder is ____________.

  1. amount of guarantee specified in memorandum

  2. amount of guarantee given on paper

  3. both A & B

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

A guarantee company is a type of corporation designed to protect members from liability. Guarantee companies often form when non-profit organizations wish to attain corporate status.  For a guarantee company the liability of shareholder is amount of guarantee specified in the memorandum.

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

__________ have the right to vote on any resolution placed before the company or general meeting.

  1. Preference shareholder

  2. Equity shareholders

  3. Debenture holder

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Equity shares is the most important source of raising long term capital by a company. Equity shares represent the ownership of a company and thus the capital raised by issue of such shares is known as ownership capital or owner’s funds. Hence, being the owners of the company, equity shareholders have the right to vote on any resolution placed before the company or general meeting.
Multiple choice commercial studies sources of business finance - 2 equity shares share and stock equity and preference shares

Which of the following statement is false?

  1. Equity shares have a right to vote on every resolution of the company

  2. Preference shares cannot vote on all the resolutions of the company

  3. All the equity shareholders have equal voting rights

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

As per companies act, 2013, every member of company limited by shares and holding any equity share capital shall have a right to vote in respect of such capital on every resolution placed before the company and his voting rights on a poll shall be proportionate to his share of the equity share capital of a company. Therefore, the statement that all equity shareholders have equal voting rights is FALSE.

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

Which of the following statements is true?

  1. A person having share warrant is a member of the company

  2. A person having share warrant is only a shareholder of the company and not a member

  3. A legal representative of a deceased shareholder is not a shareholder of a company

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

Share warrant is a bearer document of title to shares and can be issued only by public limited company against fully paid shares. It is a negotiable instrument which is transferable from one person to another by mere delivery. On issue of warrant, it is mandatory for company to strike off name of member from its register of members and holder of warrant is merely a shareholder to the company and he is the one who not only faces the risk  of losing the warrant but also enjoys benefits arising out of it.
Therefore, A person having share warrant is only a shareholder of the company and not the member.

Multiple choice elements of business recent trends in marketing product life cycle e-marketing role of a marketer definition and functions of purchasing and storage department purchasing and stores

Under internal marketing _________ are treated as internal customers.

  1. employees

  2. government

  3. public

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

Internal marketing views employees as internal customers, focusing on satisfying their needs to improve service delivery.

Multiple choice organization of commerce and management employment opportunities in commerce outsourcing employment opportunities in insurance sector and capital market emerging service business in india

BPO that is contracted outside a company's country is called ___________.

  1. offshore outstanding

  2. offshore outsourcing

  3. offer outsourcing

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

Offshore outsourcing is a type of business process outsourcing that involves hiring an external organisation to perform some business functions in a country other than the one where products or services are actually developed or manufactured.

Multiple choice organization of commerce and management employment opportunities in commerce outsourcing employment opportunities in insurance sector and capital market emerging service business in india

BPO that is contracted to a company's neighbouring (or nearby) country is called ________.

  1. offshore outsourcing

  2. near shore outsourcing

  3. on shore outsourcing

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

Business process outsourcing in which the work is contracyed to be done from the meighbouring countries rather than getting it done from its own country, it is known as near shore outsourcing.

Multiple choice organisation of commerce and management sources of business finance - 2 debentures / bonds debentures non-institutional sources - long-term

Debenture holders are termed as __________ of the company.

  1. debtors

  2. creditors

  3. traders

  4. consumers
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
 The debenture issued by a company is an acknowledgment that the company has borrowed a certain amount of money,which it promises to repay at a future date. Debenture holders are, therefore,termed as creditors of the company.
Multiple choice elements of accounts introduction of financial statement of company general instructions for preparation of balance sheet tools of financial statements uses, importance, and limitation of financial statements

Pooling of interest method is applicable for amalgamation in the nature of _____.

  1. Merger

  2. Consolidation

  3. Reconstruction

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

Pooling of interest method is applicable for amalgamation in nature of merger, because Amalgamation in nature of merger is the former method where the two balance sheets are consolidated and a new balance sheet is made. Thereby said as in nature of merger. This method considers historical costs and doesn't take into account intangible assets like Goodwill.