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 political science local self-government-urban local self - government - urban local self government - urban local self government- urban

A Municipal Corporation comprises of __________.

  1. General Council

  2. The Mayor

  3. The Standing Committee

  4. Municipal Commissioner

  5. All of these
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

A Municipal Corporation is a local governing body whose duty is to look after the basic needs of the resident of a city. A municipal corporation comprises of The Mayor, The General Councils, The Standing committee, The Municipal Commissioner, Councillors or Contractors and other ward members.

Multiple choice memorandum of understanding and articles of association company business studies

What is not false for dormant company?

  1. It is registered for future project

  2. It is registered under Companies Act, 1956

  3. It is registered as dormant company under Companies Act, 1956

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

A dormant company is one formed for a future project or to hold an asset or intellectual property and has no significant accounting transactions.

Multiple choice memorandum of understanding and articles of association company business studies

Is CSR applicable to Foreign Companies?

  1. No

  2. Yes

  3. Nothing Specified

  4. It is Voluntary
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under the Companies Act, 2013, the provisions regarding Corporate Social Responsibility (CSR) are applicable to foreign companies that have a branch office or project office in India meeting certain financial criteria.

Multiple choice memorandum of understanding and articles of association company business studies

Power/ duties of Auditors apply _______to Company Secretary in Practice conducting secretarial audit.

  1. Mutatis Mutandis

  2. Mutains Mutandis

  3. Mutatis Mutantis

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

The Latin phrase 'mutatis mutandis' means 'with the necessary changes having been made', which is standard legal terminology when applying rules from one context to a similar one.

Multiple choice memorandum of understanding and articles of association company business studies

The 'Doctrine of Indoor Management' provides protection to the ___________.

  1. Board of Directors

  2. Shareholders

  3. Managing Director

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

In simple words, the doctrine of indoor management means that a company's interior associations are the company's difficulty. As a result, this regulation of interior organization is important to people dealing with a company through its directors or other persons. 

Where the doctrine of productive notice protects a company against outsiders, the doctrine of indoor management protects outsiders against the actions of a company. This doctrine also is a feasible safeguard against the possibility of abusing the doctrine of productive notice.

Thus, the correct option is D.

Multiple choice memorandum of understanding and articles of association company business studies

A company can change its name, by passing _________.

  1. ordinary resolution

  2. special resolution

  3. board resolution

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

Changing a company's name requires an amendment to the Memorandum of Association, which must be approved by the shareholders through a special resolution.

Multiple choice memorandum of understanding and articles of association company business studies

Which is NOT a feature of an incorporated company?

  1. Transferability of shares

  2. Limited liability

  3. Common seal

  4. It is an agent
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An incorporated company is a separate legal entity. It acts through its directors and agents, but it is not an agent of its shareholders; the company itself is the principal.

Multiple choice memorandum of understanding and articles of association company business studies

The persons who are in charge of the management of affairs of a company are termed as directors. They are collectively known as ________.

  1. shareholders

  2. employees

  3. board of directors

  4. either a or b
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Section 2(10) of the Companies Act, 2013 defined that Board of Directors or Board, in relation to a company, means the collective body of the directors of the company.

Multiple choice memorandum of understanding and articles of association company business studies

Which of the following cases clearly established that 2 company has a separate legal entity?

  1. Salomon v Salomon and Co. Ltd.

  2. Sultan and Co. Ltd. v Sultan

  3. Connors Bros v Connors

  4. FOSS V Harbottle
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The landmark case Salomon v Salomon and Co. Ltd. established the principle of separate legal entity, confirming that a company is distinct from its members.

Multiple choice memorandum of understanding and articles of association company business studies

A company has to file annual return for 31st March, 2015 which form it will fill?

  1. MGT-7 as per Companies Act, 2013

  2. MGT- 7 as per Companies Act, 1956

  3. Form 23 as per Companies Act, 1956

  4. Form 23 as per Companies Act, 2013
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under the Companies Act, 2013, the annual return is filed in Form MGT-7.

Multiple choice memorandum of understanding and articles of association company business studies

Preferential shareholders can call meeting in which situation?

  1. Curfew

  2. Emergency

  3. Bomb blast

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
As per section 48 of Companies Act, 2013 class meetings are held by preferential shareholders. Class meeting are basically held for taking consent of a particular class of shareholders. Through this meeting, the rights and privileges of the shareholders can be altered, or conversion of one class to another can be done.