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 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.

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

The government appoints advisers to the board of corporation to look over functionality of the statutory corporations.

  1. True

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

The government has a practice of appointing advisors to the Corporation Board which curbs the freedom of the Corporation. If there is any disagreement, the matter is referred to the government for final decisions which further delays action.

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

The employees of statutory corporations are _____________.

  1. Government employees

  2. Civil servants

  3. Public sector employees

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

The employees of statutory corporations are not government or civil servants or public sector employees and are not governed by government rules and regulations. The conditions of service of the employees are governed by the provisions of the act itself. 

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

Statutory corporations are wholly owned by ______________.

  1. The state government

  2. The central government

  3. Private sector

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

Statutory corporations are wholly owned by the central government which has the ultimate financial responsibility and has the power to appropriate its profit and also has to bear the losses of any.

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

Statutory corporations are not concerned with the central budget of government.

  1. True

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

Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments.It is a corporate person and has the capacity of acting in its own name.

Examples: Reserve Bank of India, State Bank of India, Life Insurance Corporation, Unit Trust of India, Employees State Insurance Corporation, Oil and Natural Gas Corporation etc. are some examples of statutory corporations.

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

The government does not interfere in the financial matters of statutory corporations.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments. It is a corporate person and has the capacity of acting in its own name, Reserve Bank of India, State Bank of India, Life Insurance Corporation, Unit Trust of India, Employees State Insurance Corporation, Oil and Natural Gas Corporation etc. are some examples of statutory corporations.
Multiple choice commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

Statutory corporations are financially dependent.

  1. True

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

Statutory corporations enjoys financial autonomy or independence. They are not subject to budget, audit or accounting control. 


With the prior permission of the government it can even borrow the money within or outside the country.  

It prepares its own budget; and has authority to retain and utilize its earnings for its business.

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

Statutory corporations have the power of ________________.

  1. Government

  2. Public enterprises

  3. Private enterprises

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

A statutory corporations is a valuable instrument for economic development. It has the power of the government, combined with the initiative of public and private enterprises.

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

Statutory corporations are free from undesirable government regulations and control.

  1. True

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

Government policy can influence interest rates, a rise in which increases the cost of borrowing in the business community. Higher rates also lead to decreased consumer spending. Lower interest rates attract investment as businesses increase production.

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

The policies and procedures of a statutory corporation are assigned to them by __________.

  1. Government

  2. Organization itself

  3. Special act of parliament

  4. Neither of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Since statutory corporations are autonomous organizations, they frame their own policies and procedures within the powers assigned to them by the Act. The Act may, however, provide few issues which require prior approval of a particular ministry.

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

Government do not interfere on major decisions and huge financial decisions of the statutory corporations.

  1. True

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

Statutory corporations are body corporates formed by a special act of parliament or by the central or state legislature. It is fully financed by the government. Its powers, objects, limitations etc. are also decided by the act of the legislature.

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

Statutory corporations are public enterprises brought into existence by _____________.

  1. Public

  2. Government

  3. Special act of parliament

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

Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament which defines it's powers, functions, rules and regulations etc.