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 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
A proxy form must be deposited in the company office at least ______ hours before the meeting. 

  1. 24

  2. 48

  3. 72

  4. 56
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A proxy is someone who attends and votes in place of the member of a company. Every member of a company has a statutory right to appoint a proxy for which a proxy form must be deposited in the company office at lest 48 hours before the 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
A meeting of all the directors of a company is __________.

  1. General Meeting

  2. Directors Meeting

  3. Annual Meeting

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

Directors' meeting also known as board meeting is the formal meeting of the board of directors of an organisation held usually at definite intervals to consider policy issues and major problems.

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 Annual Return should be filed with ___________.

  1. the Registrar of Companies

  2. the Directors of Companies

  3. the secretary of Companies

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

The Annual Return should be filled with the Registrar of Companies. Registrar of Companies (ROC) appointed under the Companies Act covering the various states and union territories the primary duty of registering companies and LLPs comply with the statutory requirements under Act.

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
Resolution for the appointment of company's banker is made in the ________ meeting.

  1. General

  2. Board

  3. Creditors

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

The appointment of a company's banker is an administrative or operational decision typically handled by the Board of Directors, not the general body of 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

After incorporation first AGM should be held within

  1. 12 months

  2. 16 months

  3. 18 months

  4. 24 months
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

All company must hold an annual general meeting in every calendar year. However, if the first annual general meeting is held within 18 months from the date of its incorporation, it is not necessary to hold any annual general meeting in the year of incorporation or in the following 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

Minutes of meeting generally contain-

  1. Date, Time and place of the meeting

  2. The name of the person in the chair

  3. Name of directors, company secretary and persons in attendance

  4. All of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Minutes, also known as minutes of meeting protocols or, informally, notes, are the instant written record of a meeting or hearing. They typically describe the events of the meeting and may include a list of attendees, a statement of the issues considered by the participants, and related responses or decisions for the issues.
It contains date, time, place of the meeting, person who is heading or on the chair , name of directors, company secretary and persons who are going to attend 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

After incorporation any company can change its name at its own discretion by passing

  1. Ordinary resolution

  2. Special resolution

  3. Boards resolution

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
As per Section 13 of the Companies Act, 2013 the name of the company can be changed by a Special Resolution and with the approval of the Central Government.  But on the other hand if the change relates to the addition/deletion of the words “private” to the name, then approval of Central Government is not required.
Multiple choice elements of business introduction to book keeping and accounting meaning and classification of business transactions develop the understanding of recording of transactions in journal illustrations on journal entries

When a new company is formed to take over the business of an existing company it is known as _____________ .

  1. Amalgmation

  2. Absorption

  3. Internal Reconstruction

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

When a new company is formed to take over the existing company's business it is external reconstruction while when the company reorganizes itself and reworks on its capital and other liabilities and other assets it refers to internal reconstruction.No company is dissolved in case of internal reconstruction.

Multiple choice elements of book keeping and accountancy introduction to book keeping and accounting meaning and classification of business transactions develop the understanding of recording of transactions in journal illustrations on journal entries

When one existing company takes over the business of another company or companies, it is _____________.

  1. Amalgamation

  2. Absorption

  3. Internal Reconstruction

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

Amalgamation means merger of two or more companies and forming of altogether a new company.

In case of absorption, the company which is taking over(buying company) remains while one is taken over(selling company) dissolves.

Multiple choice organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

State the following statements is True or False:

The meeting which held once in the life time of a public company is the statutory meeting.

  1. True

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

A statutory meeting is a mandatory meeting that a public company limited by shares must hold once in its lifetime, usually within a specific timeframe after commencing business.

Multiple choice organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

Which of the following is NOT "Public Corporation"?

  1. Life Insurance Corporation of India

  2. Employees State Insurance Corporation

  3. Industrial Development Bank of India

  4. State Trading Corporation
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Public corporations are established by special acts of parliament. The State Trading Corporation is a government company registered under the Companies Act, not a statutory public corporation.

Multiple choice organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

Feature(s) of a public corporation is/are _____________________.

  1. It is a body corporate which is established only under the Companies Act, 1956

  2. It enjoys a separate legal entity with perpetual succession and common seal.

  3. It can acquire an own property but not on its own name.

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

It enjoys a separate legal entity with perpetual succession and common seal- it is a feature of public corporation. A public corporation is a combination of public ownership, public accountability and business management for public end. A public corporation can also be defined as an organization that is clothed with the power of government but is possessed with the flexibility and initiative of private enterprise.

Multiple choice organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

State the following statement is True or False:
A public company can start business after securing the certificate of incorporation.

  1. True

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

A public company can start a business after securing the certificate of incorporation. It is a legal document or we can say a license to form a corporation which is issued by the government. 

Multiple choice organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

Name the supervising authority under which the Registrar of Companies in a region works___________________.

  1. An official liquidator

  2. Regional Director

  3. Chairman

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

A director is a person from a group of managers who leads or supervises a particular area of a company.Regional directors are present in companies that are organized by location and have their departments under that. They are responsible for the operations for their particular country.

Multiple choice organisation of commerce and management public sector undertakings & global enterprises characteristics, objectives and growth of public sector enterprises public, private and joint sector cooperatives

Select the correct option given below :
In the public company _______ directors are eligible to retire every year.

  1. All

  2. One-third

  3. Two-third

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

According to the Companies Act, at least two-thirds of the total number of directors of a public company should be liable to retire by rotation, and one-third of these must retire every year.