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 meaning and features of government company government companies forms, comparison and cases of public enterprises

Company has ________ sucession.

  1. Longer

  2. Continued

  3. Perpetual

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

In company law, perpetual succession is the continuation of a corporation's or other organization's existence despite the death, bankruptcy, insanity, change in membership or an exit from the business of any owner or member, or any transfer of stock, etc.

Multiple choice organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

Audit of Government Company is done by C & AG. This statement is ______________.

  1. True

  2. False

  3. Partly True

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

Auditor of all types of companies, except a Government Company, shall be appointed by the Board of Directors within 30 days from the date of registration of the Company. Tenure: First Auditor appointed by Board shall hold office till the conclusion of the first annual general meeting of the Company.

The Comptroller and Auditor General (CAG) of India is an authority, established by Article 148 of the Constitution of India, which audits all receipts and expenditure of the Government of India and the state governments, including those of bodies and authorities substantially financed by the government.

Multiple choice organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

Which of the following are the characteristics of a company? 

  1. Corporate Personality

  2. Limited Liability

  3. Perpetual Succession

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

A company as an entity has many distinct features which together make it a unique organization. The essential characteristics of a company are following: Separate Legal Entity The company is distinct and different from its members in law. Thus, a company may be defined as An incorporated association which is an artificial -person created by law, having a separate entity, with a perpetual succession, a common seal, capital divided into transferable shares and carrying limited liability.

Multiple choice organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

A subsidiary of government company is also treated as a ___________. 

  1. Government Company

  2. Public Company

  3. Private Company

  4. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
The Central Government, or Any State Government or Governments, or Partly by the Central Government and partly by one or more State Governments, or includes a Company which is a Subsidiary Company of such a Government Company; A Subsidiary of Government Company shall also be treated as a Government Company.
Government Company is a company or an organization in which at least 51% of the paid up share capital is held by the central government or the state government or partly by both central and state government. A company having business operations in India and registered under the Indian Companies Act, 1956 is called Indian Company. An Indian company may be formed as a public limited, private limited or government company
.the   government-owned corporation is a legal entity that undertakes commercial activities on behalf of an owner government. Their legal status varies from being a part of the government to stock companies with a state as a regular stockholder.
Multiple choice business organisation stock exchange meaning and functions of capital market capital markets listing of securities, stock market players

The contents of the prospectus have to be in accordance with the provisions of the Companies Act and SEBI disclosure and investor protection guidelines.

  1. True

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

The contents of the prospectus have to be in accordance with the provisions of the Companies Act and SEBI disclosure and investor protection guidelines- this is a true statement. Prospectus is required and to be filed up under Stock Exchange Board. It helps to give details about the company's background. It helps to protect the interests of the investors and provides security to the investment.

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

The term company Limited by shares is defined in section _________ of Companies Act, $2013$.

  1. $2(10)$
  2. $3(5)$
  3. $2(22)$
  4. $2(1)$
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

As per section 2(22) of the Companies Act 2013, "A company limited by shares is a company whose shareholders have a liability limited to the extent of the amount unpaid, if any on the shares held by the shareholders." 

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

One person can never be a quorum for company meetings.

  1. True

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

Under standard corporate law, a quorum requires a minimum number of members to be present to validate the proceedings of a meeting. A single person generally cannot constitute a quorum unless specific articles of association provide otherwise for a single-member company.

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company
At least _______ board meetings must be held during the year.

  1. one

  2. two

  3. three

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

Board meetings are meetings held at intervals to discuss problems and the policies of the company . It should be held at least four times a year. 

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company
The meeting of shareholders which is held under special circumstances is the ________ . 

  1. Annual General meeting

  2. Statutory meeting

  3. Extra Ordinary General meeting

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

Extraordinary General Meeting is a meeting of the members or the shareholders of the company which is held at a short notice especially in order to consider a particular matter. Hence the meeting of shareholders which is held under special circumstances is the Extraordinary General Meeting.  

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company
The business transacted in extra ordinary general meeting is _______ .

  1. Ordinary Business

  2. Routine Business

  3. Special Business

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

An Extraordinary General Meeting (EGM) is convened to handle urgent matters that cannot wait until the next Annual General Meeting. These matters are classified as Special Business.

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company
The general meetings are the meetings of the _________ of the company.

  1. shareholders

  2. promoters

  3. employees

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

The general meeting is the meeting of the shareholders of the company. It gives information to the shareholders about the company's performance and strategy.

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company

The first meeting of the directors is held within _________ days from obtaining the certificate of incorporation.

  1. 30

  2. 20

  3. 15

  4. 60
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

According to standard company law regulations, the first board meeting of directors must be held within 30 days of the company's incorporation.

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company
The business to be transacted at the meeting is called ____ .

  1. agenda

  2. minutes

  3. motion

  4. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Agenda is a list of meeting activities in order in which they are to be taken up, beginning with the call of order and ending with adjournment. It usually includes one or more specific item of business to be acted upon. Hence the business to be transacted at the meeting is called Agenda.

Multiple choice business organisation and correspondence joint stock company 6 - meetings, proposal and winding up of a company meetings and other aspects of a company joint stock companies joint stock company
_____________ is a meeting which is held once in the life time of company.

  1. Extra-Ordinary General meeting

  2. Annual General meeting

  3. Statutory meeting

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

A statutory meeting is the first meeting of the shareholders of a public limited company which is held only once in the life-time of the company. The meeting is held to provide an opportunity to the members for discussing all matters relating to the formation of the company