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 markets and marketing meaning, nature and importance of services introduction to services nature and types of services
The meeting in which the auditors are appointed is the Annual General Meeting.

  1. True

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

According to Section 139 of the Companies Act, every company shall, at the first annual general meeting, appoint an individual or a firm as an auditor who shall hold office from the conclusion of that meeting till the conclusion of its sixth annual general meeting and thereafter till the conclusion of every sixth meeting. 

The manner and procedure of selection of auditors by the members of the company at such meeting shall be such as may be prescribed.

Multiple choice legal studies bureaucracy bureaucracy public administration and its importance bureaucracy in india

The term private administration refers to the ___________ of the affairs of the business enterprise. 

  1. Operation

  2. Management

  3. Organization

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

Private administration is the operation, management and organization of the affairs of the business enterprise. Administration is carried out by private individuals/groups to earn profit for the organization while keeping in mind the interests of employees and clients/partners.

Multiple choice legal studies bureaucracy bureaucracy public administration and its importance bureaucracy in india

_______________ is a business activity.

  1. Public administration

  2. Private administration

  3. Social administration

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

Private administration is a business activity. Private administration is the operation, management and organization of the business enterprise. It is non-governmental set-up. Private administration is profit oriented.

Multiple choice elements of business sources of business finance - 1 classification & choice of sources of funds classification of sources of finance owned funds and borrowed funds

Shareholders are the owners of a company.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
A shareholder, commonly referred to as a stockholder, is any person, company, or institution that owns at least one share of a company’s stock. Because shareholders are a company's owners, they reap the benefits of the company's successes in the form of increased stock valuation. If the company does poorly and the price of its stock declines, however, shareholders can lose money.
Although they are owners of the company, shareholders do not manage operations.  A board of directors is appointed to govern the activities and operations of the company.
Multiple choice economics how does production take place? entrepreneur land,labour, capital and entrepreneur production mechanism

ASME, according to the _____ is an independently owned and operated, organized for profit, and not dominant it its field. 

  1. National Skill Development Corporation

  2. US Small Business Administration (SBA)

  3. NITI Aayog

  4. Expert Committee on Innovation & Entrepreneurship
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

US Small Business Administration is a United States' government agency that provides supports to entrepreneurs and small businesses.

Multiple choice commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

Select the odd one in relation to users of accounting information's.

  1. Officers

  2. Managers

  3. Debtors

  4. Board of directors
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Managers, board members, and officers are internal users of accounting information. Debtors are external parties who owe money to the business and are not primary users of internal accounting reports.

Multiple choice commercial applications basic accounting principles and concepts meaning and purposes of accounting need and basic principles of accounting generally accepted accounting principles

Which one of the following statements correctly explain the term 'doctrine of Indoor Management? 

  1. The doctrine seeks to protect the outsiders against the company

  2. Every person dealing with the company is presumed to have read and understood the contents of company's Memorandum and Articles of association

  3. If a person enters into a contract with the company which is contrary to the provisions of Memorandum and Articles of Association, he will not get any right under such contract

  4. It protects the company against the outsiders.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Option B is correct.

Doctrine of indoor management is an exception to rule of constructive notice. According to this doctrine, persons dealing with company are entitled to presume that internal requirements prescribed in the memorandum and articles have been properly observed. 
They can assume that the members of the company are performing their acts within the scope of their apparent authority. 

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

Secretary looks after the legal matter of any business organisation.

  1. True

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

The secretary looks after the compliance with the rules and regulations in section 100 of companies act 1956. making statutory decision on the behalf of the company.  

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

For any business organisation secretary is required.

  1. True

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

Since there are many tasks or works to do in an organisation there is a requirement of administrative assistance for better functioning of the business. Therefore for every business organisation secretary is required.

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

State whether the following statement are True or False:
A group of elected/appointed representatives of shareholders who manage a company are called the board of directors.

  1. True

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

True , board of directors are a group of elected officials who are representatives of the shareholders and take the management decisions on their behalf.

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

State  the following statement is True of False:

Directors are the owners of the company.

  1. True

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

Stockholders own shares in companies, which makes them collective owners. They elect a board of directors to lead their companies and look out for their investment interests. Boards have a legal responsibility to govern on behalf of the stockholders and help companies prosper.

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

State  the following statement is True of False:

A share warrant holder is the member of the company.

  1. True

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

This Statements is False , due to the following reasons:

(i) A share warrant is a document that gives the holder, the right to buy share at a fixed price at a given future date.

(ii) A member is a person whose name appears in the Register of Members. He may not necessarily be shareholder or a share warrant holder of the company.

(iii) A share warrant is a documents title of share. A person holding share warrant becomes the owner of the shares mentioned in the documents.

(iv) A share warrant  holder is a shareholder of the company. However he is not a member as name does not appear in the register of members.

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

State  the following statement is True of False:

A Managing Director is appointed for a period of 5 years.

  1. True

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

True.

A Managing Director is someone who is responsible for the daily operations of the company, organization or corporate division. 
As a  member of senior management, the managing director the managing director is also expected to keep a company solvent and to promote expansion and innovation within the industry. Managing Director is appointed for a period of five years.

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

The winding up proceedings of a company are conducted by the official liquidator.

  1. True

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

True.

An official liquidator is the person responsible for the winding up proceedings of a company at the time of liquidation of the company.

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

State  the following statement is True of False:

The Company Secretary is the member of the company.

  1. True

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

True. 

The company secretary is the member of the company as he is responsible for the efficiency administration of the company.
A company secretary is an important organ of a company who performs various ministerial and administrative duties. It is mandatory for every company having a paid up share capital of 5 crore or more to appoint full-time company secretary who is member of Institute of company secretaries of India.