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 elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Out of these which statement is true?

  1. Both private and public companies need one director

  2. Private companies need two directors but public companies need 3

  3. Private companies need one directors but public companies need two

  4. Both private and public companies need two directors
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

In the words of " _______ "a public Corporation is an organization that is clothed with the power  of the government, but is possessed with the flexibility and initiative of private enterprise."

  1. Roosevelt

  2. Schumpeter

  3. Prof. Robson

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

This specific definition of a public corporation, emphasizing the balance between government power and private flexibility, is attributed to Franklin D. Roosevelt.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Every listed public company shall have at least  __________ of the total number of directors as independent directors.

  1. One-fourth

  2. Two-third

  3. One-third

  4. Three-fourth
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

According to the Companies Act and SEBI regulations, listed public companies are required to have at least one-third of their total directors as independent directors.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Which of the following companies must appoint woman director ?
(I) Listed Company
(II) Every  public company having paid up share capital of Rs.100 Crores or more as on the last date of latest audited financial statements.
(III) Every public company having borrowing of Rs.500 Crores or more as on the last date of latest audited financial statements.
(IV) Every other public company having net capital employed of Rs.500 Crores or more as on the last date of latest audited financial statements.
(V) Every public company having turnover of Rs.300 crore or more as on the last date of latest audited financial statements.
Select the correct answer from the options given below -

  1. (I), (II), & (V) of the above

  2. (II), (III), & (IV) of the above

  3. (I) & (III) of the above

  4. (I), (II), (III) & (IV) of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under the Companies Act, specific criteria regarding paid-up capital, turnover, or borrowing thresholds trigger the requirement to appoint at least one woman director for public companies.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public
A company which can start a business after getting the certificate of incorporation is a ____________.

  1. private company

  2. public company

  3. joint stock company

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

After certificate of incorporation, a private company can start its business. Incorporation of a Joint stock company is compulsory. Without incorporation, all the contracts would be considered void in the eyes of law and operations of business cannot be carried out.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public
Private company need not hold the __________ .

  1. Statutory meeting

  2. Annual general meeting

  3. Extra-ordinary general meeting

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

A private limited company and a company limited by guarantee not having share capital need not hold a statutory meeting. Statutory meeting must be held within a period of not less than one month and not more than six months after the date on which it is authorized to commence its business.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Select the term or a phrase which can substitute the following statement:
Name the type of company which can start it's business after getting 'Certificate of Incorporation'?

  1. Public company

  2. Private company

  3. Co-operative society

  4. Joint stock company
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

After receiving certificate of incorporation, a private company can start its business. Incorporation of a Joint stock company is compulsory. Without incorporation, all the contracts would be considered void in the eyes of law and operations of business cannot be carried out.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

State the following statement is True or False:

The private company need not hold the statutory meeting.

  1. True

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

A private limited company and a company limited by guarantee not having share capital need not hold a statutory meeting. Statutory meeting must be held within a period of not less than one month and not more than six months after the date on which it is authorized to commence its business.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Select the correct option given below:

The quorum for general meeting of a private company according to the Companies Act, 1956 is _______.

  1. 2

  2. 3

  3. 7

  4. 10
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

For a private company, the Companies Act specifies that the quorum for a general meeting is two members personally present.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Select out the feature which is NOT found in a private limited company?

  1. Raising capital for the business is easier.

  2. Shares can be bought and sold on the Stock Exchange.

  3. Subscribers of the business have limited liability

  4. The business continues after the death of shareholders
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Private limited company is a type of company that offers limited liability, or legal protection to its share holders. It has the following features:

  1. Raising capital for the business is easier.
  2. Subscribers of the business have limited liability.
  3. The business continues after the death of shareholders.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Which of the following statements suits best to private limited company?

  1. It is owned by the government

  2. It is owned by shareholders who can sell their shares in the stock exchange

  3. It is formed for the benefit of society at large

  4. Its accounts can be kept private and it receives little coverage in the business
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Private limited companies is a type of company which has limited liability and offers legal protection to its share holders. The accounts of this company are kept private between the members themselves and also it receives little coverage in the business.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

A Company which is employing _______ number of employees are required to have a PPF account.

  1. 30

  2. 25

  3. 20

  4. 35
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under the Employees' Provident Funds and Miscellaneous Provisions Act, establishments employing 20 or more persons are generally required to provide PF benefits.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Which of the following statement is true?

  1. Both private and public companies need one director

  2. Private companies need two directors but public companies need 3

  3. Private companies need one director but public companies need two

  4. Both private and public companies need two directors
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Minimum number of three directors is required in case of public company while two are required in case of public company and one director in case of One person company.