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

_____is the conclusive evidence in case of company that statutory all the requirements have complied with regarding the company registration.

  1. Certificate of incorporation

  2. Certificate of commencement of business

  3. Both

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

Certificate of incorporation is a legal document required at the time of company formation. It is said to be a license to form a company, issued by the state government. Certificate of incorporation has been divided into the different articles but there are many others things that can be included in the certificate of Incorporation. There should be a digital signature which should add by the director of the corporation.

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

Statutory meeting is to be held by __________________.

  1. Public Limited company

  2. Private Limited company

  3. Both a & b

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

It is a limited liability company whose shares may be freely sold and traded to the public (although a plc may also be privately held, often by another plc), with a minimum share capital of £50,000 and usually with the letters PLC after its name.

It is a limited liability company whose shares may be freely sold and traded to the public (although a plc may also be privately held, often by another plc), with a minimum share capital of £50,000 and usually with the letters PLC after its name. Public limited companies will also have a separate legal identity.

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

Which of the following is/are statutory corporation?

  1. Life Insurance Corporation(LIC)

  2. Unit Trust of India(UTI)

  3. Food Corporation of India

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

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

Which amongst the following is NOT a role of a Company Secretary?

  1. As a statutory officer

  2. As an administrative officer

  3. As a coordinator

  4. As a manager
Reveal answer Fill a bubble to check yourself
D 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.

The requirement to appoint a Company Secretary in Private Limited Company is governed by the Provision of Rule 8A and in Public / Listed Company by the provisions of Rule 8 of The Companies “Appointment and Remuneration of Managerial Personnel” Chapter XIII under Section 203 of the Companies Act, 2013.

Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders
The stakeholders of the company include  ___________.

  1. shareholders

  2. government authorities

  3. employees

  4. All of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
A stakeholder is a person which has an interest in a company that he/she deals with and can either affect or be affected by the business. Thus shareholders, government authorities, employees etc are stakeholders of the company.
Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

Maximizing shareholder value is a very limited concept and distracts everyone from what the purpose of a company is or should be.

  1. True

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

Maximizing shareholder value is a very limited concept and distracts everyone from what the purpose of a company is or should be- this is a true statement. Maximizing the number of shareholders should be the purpose of a company.

Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

Creditors are the external stakeholders of a company.

  1. True

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

Creditors are the external stakeholders of a company- this is a true statement since creditors belong to the entities outside the business organization. Like creditors, officials and suppliers are also external stakeholders.

Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

Internal stakeholders are people who are already committed to serving your organization as ________.

  1. Board members

  2. Staff

  3. Managers

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

Internal stakeholders are people who are already committed to serving your organization as board members, staff and managers. Internal stakeholders are referred as entities within business organization.

Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

Stakeholders of a company does not include ________________.

  1. Communities

  2. Trade Unions

  3. Government

  4. Technology
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Stakeholders of a company does not include technology since technology does not have any interest with business. It does not get affected by the business activities.

Multiple choice business studies sources of business finance internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders in commercial organisation stakeholders

_______ are one of the most immediate external stakeholders that a company must consider.

  1. Employees

  2. Customers

  3. Directors

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

Customers are one of the most immediate external stakeholders that a company must consider.External stakeholders belong to the entities outside the business organization. Like customers, officials and suppliers are also external stakeholders.

Multiple choice organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

A Company which has gone global is called a _______.

  1. Multinational

  2. Transnational

  3. Either (A) or (B)

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

MNC has an international identity as belonging to a particular home country where they are headquartered. A transnational company is borderless, as it does not consider any particular country as its base, home or headquarters. Transnational corporations are a type of multinational corporations.

Multiple choice organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

Restrictive clauses are signed by the global enterprises to safeguard __________.

  1. transfer of technology

  2. pricing

  3. dividend of payments

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

A restrictive clause is a clause which functions as an adjective to identify the word it modifies. A restrictive clause is essential for the intended meaning. A restrictive clause is not offset with commas.

Multiple choice organisation of commerce and management multinational corporations global enterprises meaning and features of mncs public sector undertakings & global enterprises

Which of the following is autonomous or semi-autonomous corporation and companies establishes, owned and controlled by the state and engaged in industrial & commercial undertakings?

  1. Private enterprises

  2. Public enterprises

  3. Semi private enterprises

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

Public enterprise, a business organization wholly or partly owned by the state and controlled through a public authority. Some public enterprises are placed under public ownership because, for social reasons, it is thought the service or product should be provided by a state monopoly.

Multiple choice commercial applications generally accepted accounting principles (gaap) distinction between accounting and book-keeping distinction between book-keeping and accounting meaning and objectives of accounting

A business can not run without book keeping. 

  1. True

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

Book keeping is a systematic records of transaction however there are certain limitations such as book keeping doesn't follow the principle of double entry system moreover it is based on cash basis of accounting  but not made on an accruals basis so it is not necessary for a firm to use book keeping it can run without book keeping. 

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

The HUF form of business all the members of a hindu undivided family own the business ________.

  1. Individually

  2. Separately

  3. Jointly

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

In an HUF, the business is owned jointly by all members of the family, not individually or separately.