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 organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

The Hindu Undivided Family business governed by ______________.

  1. Contract law

  2. Hindu law

  3. Muslim law

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

The Hindi Undivided Family business governed by Hindu Law. In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.

Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

A HUF should be registered with ___________.

  1. Not required at all

  2. Registrar of societies

  3. Registrar of firms

  4. Registrar of companies
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A HUF need not be registered. To begin a Hindu Undivided family business there must be minimum of 2 related family members, there must be ancestral property that they have inherited. 


There is no need for registration and documentation and admission of new member is by birth.

Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

Members of HUF are known as ______.

  1. partners

  2. shareholders

  3. members

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

Joint hindu family business is regulated by the Hindu succession act. According to it the business is owned and managed by the karta, the head of the family and a;; the members of the family are its co parceners. Hence, the head of the family business is  called as karta.

Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

The business affairs of an HUF is managed by _______.

  1. managing director

  2. parents of minors

  3. karta

  4. eldest male and female member of the family
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Karta is the eldest male member (or female in some interpretations) who manages the business affairs of the HUF.

Multiple choice organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

In a Hindu Undivided Family business only the _____ get a share in the business by virtue of their being part of the family.

  1. Female members

  2. Male members

  3. Both (a) & (b)

  4. Either (a) or (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.

Multiple choice geography globalization and trade mncs and impact of globalization effects of globalisation in india globalisation and the indian economy

Multinational Corporations 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

A multinational company is one which has its main office in the home country and has many branches or subsidiaries in two or more country. Hence, MNCs can be defined as a firm which owns companies in more than one country.

Multiple choice organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

An association established for promoting common economic interest of members is a Co-operative society.

  1. True

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

Cooperative society works for its members. In this, minimum 10 people needs to voluntarily come together to meet their economic, social and cultural interests through a democratically controlled enterprise.

Multiple choice organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

A voluntary association of persons which required minimum ten major persons for its formation is a co-operative society.

  1. True

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

To form a cooperative society, minimum 10 people needs to voluntarily come together to meet their economic, social and cultural needs through a democratically controlled enterprise.

Multiple choice organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

Association which is formed for welfare of the society is co-operative society.

  1. True

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

A cooperative society is the voluntary association of people to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.

Multiple choice organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

Which form of business organisation has a separate legal entity ?

  1. Hindu Undivided Family (HUF)

  2. Co-operative society

  3. Partnership firm

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

After registration a co-operative enterprise becomes a body corporate independent of its members i.e. a separate legal entity. Registration of a co-operative enterprise is compulsory. A co-operative society may be registered with the Registrar of Co-operatives Societies.

Multiple choice organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

Which form of business organisation has a separate legal entity?

  1. Hindu Undivided Family (HUF)

  2. Co-operative society

  3. Partnership firm

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

A cooperative society is a registered body under the law, which gives it a separate legal entity distinct from its members. Sole proprietorships and partnerships generally lack this legal separation.

Multiple choice organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

The advantages of co-operative society is/ are ______________________.

  1. It is very expensive and difficult to form co-operative society as compared to a joint stock company

  2. The co-operative societies work on the principle of open membership

  3. "One share one vote" is the rule and thus members having maximum share can dominate the management

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

The biggest advantage of cooperative society is that it works upon the principle of open membership to all. Therefore, no member can detect the terms and conditions of the society and all the terms and conditions are selected democratically with one man approved of one vote.

Multiple choice organization of commerce and management ownership structures - cooperative society features, merits and demerits, formation and management of a cooperative society meaning and features of cooperative society cooperative organisation

The co-operative society has perpetual succession because it is not affected due to __________________.

  1. Death of any members

  2. Insolvency of any member

  3. Lunacy of any member

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

A Co-operative Society is an artificial voluntary association of people who work together to promote their economic interest and in order to achieve common goals. These society are incorporated with some social motives and they often have separate legal body and common seal. 

Since the corporate society has separate legal entity. Therefore, it is not affected by the death, insolvency and lunacy of any of its members. 

Multiple choice organization of commerce and management markets and marketing meaning, nature and importance of services introduction to services nature and types of services

Businesses providing direct services like tailors, restaurants and professional services like doctors, lawyers are generally organized as _____________.

  1. Proprietary concern

  2. Trust

  3. Co-operative society

  4. Any of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

These business are usually run at a smaller scale and hence are organised as proprietary business firms.

Trust can be called as a form of business wherein a trustee (an individual or a company) runs business for the benefit of the beneficiaries.
The cooperative society is a voluntary association of persons, who join together with the motive of welfare of the members. 

Multiple choice organization of commerce and management markets and marketing meaning, nature and importance of services introduction to services nature and types of services

A written record of the business transacted and the resolution passed at the meeting is minute.

  1. True

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

Minutes of meeting is an official record of the proceedings of a meeting. A record of minutes of meeting is to be kept in a minutes book maintained at the Registered office of the company or at a place approved by the Board of Directors of the company.