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 joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

A Joint Stock Company is an artificial person created by law.

  1. True

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

It is true that joint stock company is an artificial person created by law. Company has a separate legal entity and have an existence in the eyes of law. It can purchase and sell property or rights in its own name and have a perpetual succession.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

Registration of Joint Stock Company is optional.

  1. True

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

It is true that registering the company is optional. One can start the business with other ways also rather than registering like acquiring tax license, service tax registration.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

The liability of members of a Joint Stock Company is unlimited.

  1. True

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

The liability of the members of Joint stock company is unlimited i.e. assets of members cannot be used to pay the debts of company as company has a separate legal entity from its members and is termed as an artificial person in terms of law.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

A Joint Stock Company has ___________life.

  1. short

  2. limited

  3. continuous

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

A joint stock company has a continuous life. It implies death, insanity, insolvency or retirement of any of its shareholders, owners, board of directors or employees cannot lead to the closure of company. Company can run for a longer period of time.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

A Joint Stock Company is _______ person.

  1. natural

  2. an artificial

  3. imaginary

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

A joint stock company has an independent status i.e. it has a separate legal entity from its members. It has an independent existence in the eyes of law and can also purchase and sell property in its own name.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

A Joint Stock Company is a natural person.

  1. True

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

A joint stock company is an artificial person. It does not have eyes, ears, nose etc. what generally a natural person have but is has an existence in the eyes of law i.e. it can purchase and sell property in its own name.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

A Joint Stock Company is managed by the board of directors.

  1. True

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

A joint stock company is managed by the board of directors who are elected by the shareholders. All the shareholders are entitled to vote in the decision making process. Board of directors have powers in the management of the business.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

The liability of shareholders is limited.

  1. True

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

The liability of the members in a joint stock company is limited while company itself has unlimited liability since it has its existence in the eyes of law and is considered as an artificial person.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

A company secretary is an advisor to the Board of Directors. 

  1. True

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

A company secretary acts as an advisor to the board of directors and is responsible for the administration of a company, with regard to compliance  with statutory and legal requirements.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

 Joint Stock Company enjoys _______status.

  1. no

  2. legal

  3. illegal

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

A joint stock company has an independent status i.e. it has a separate legal entity from its members. It has an independent existence in the eyes of law and can also purchase and sell property in its own name.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

A Joint Stock Company is artificial person.

  1. True

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

A joint stock company is an artificial person. It does not have eyes, ears, nose etc. what generally a natural person have but is has an existence in the eyes of law i.e. it can purchase and sell property in its own name.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

Incorporation of a Joint Stock Company is compulsory.

  1. True

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

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 joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company


A Joint Stock Company is a form of commercial organisation owned by large number of investors (shareholders). 

  1. True

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

The joint stock company collects huge capital from public by dividing its capital in a small unit called shares and inviting subscription from general public on these shares. Holding these shares ensures dividend to the shareholders and provides them voting powers in the decision making process of the business and they are even termed as the owners.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

A business organisation which has a separate legal status is a _____. 

  1. Non-profit Association

  2. Joint Stock Company

  3. Co-operative society

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

A joint stock company has an independent status i.e. it has a separate legal entity from its members. It has an independent existence in the eyes of law and can also purchase and sell property in its own name.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

Fill in the blanks and rewrite the sentence:
The organisation which enjoys a separate legal status is a ___________.

  1. Joint Stock Company

  2. Non-profit organisation

  3. Co-operative organisation

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

A joint stock company has an independent status i.e. it has a separate legal entity from its members. It has an independent existence in the eyes of law and can also purchase and sell property in its own name.