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 commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

The OTCEI is a company incorporated under the Companies Act 1956.

  1. True

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

The OTCEI is a company incorporated under the Companies Act 1956. OTCEI was set up to provide small and medium companies an access to capital market for raising finance.  OCTCEI is advantageous to the company because it provides methods of raising funds through capital market instruments which are priced fairly.

Multiple choice commerce securities exchange board of india (sebi) objectives of sebi significance, functions of stock exchange, bse & nse stock exchanges functions of sebi sebi securities and exchange board of india (sebi)

Appointment of independent directors is the part of Corporate Governance as per the ________.

  1. SEBI

  2. Indian companies act

  3. Government of India

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

While the Companies Act sets the legal framework, SEBI's Listing Obligations and Disclosure Requirements (LODR) regulations specifically mandate the appointment of independent directors for listed companies to ensure corporate governance.

Multiple choice organisation of commerce and management public sector, private sector and global enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Committee which provides advise to the Central Government and National Company Law Tribunal is Advisory Committee.

  1. True

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

Advisory committee is the committee which provides advice to the central government and national company law tribunal to deal with various matters.

Multiple choice organisation of commerce and management public sector, private sector and global enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

The number of members in National Company Law Tribunal shall not exceed ________.

  1. fifty two

  2. sixty

  3. forty two

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

The National Company Law Tribunal will be constituted of as per the provisions under Section 10FC a President and an Equal number of Judicial and Technical member as the Central Governement deems fit to be appointed by way of notification in the official gazette. The total number of members in the Tribunal however cannot at any point of time exceed 60 in number. 

Multiple choice organisation of commerce and management public sector, private sector and global enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Ministry of corporate affairs has appointed _________ regional directors.

  1. three

  2. four

  3. six

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

Regional directors are present in companies that are organized by location and have their departments under that. They are responsible for the operations for their particular area. The ministry of corporate affairs has appointed seven Regional Directors who are in-charge of the respective regions, each region comprising a number of States and Union Territories. They supervise the working of the offices of the Registrars of Companies and the Official Liquidators working in their regions.

Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

The primary responsibility of a business is towards ________.

  1. employees

  2. owner

  3. banker

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

Primary responsibility of business is towards their employee as they are the most important asset (Human resource) who invest their efforts in favor of the company to better its position. Without employees company cant run.

Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

Which of the following Acts made code of ethics mandatory for companies listed on the stock exchange?

  1. Companies Act, $2006$
  2. Sarbanes- Oxley Act, $2002$
  3. Limited Liability Partnership Act, '$2008$

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Section 302 of Sarbanes Oxley Act of 2002, an Act enacted by U.S. congress to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes contains following provisions for whistle-blowers:
• Make it illegal to “discharge, demote, suspend, threaten, harass or in any manner discriminate against” whistle-blowers.
• Establish criminal penalties of up to 10 years for executives who retaliate against whistle-blowers.
• Require board audit committees to establish procedures for hearing whistle-blower complaints.
• Allow the secretary of labor to order a company to rehire a terminated employee with no court hearing.
• Give a whistle-blower the right to a jury trial, bypassing months or years of administrative hearings.
Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

Business must first be responsible to __________.

  1. employees

  2. customers

  3. owners

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

Customer satisfaction is a vital factor in successful business strategy. An organization with a strong ethical environment places its customer's interest as foremost. As customers are the backbone of any enterprises therefore business must be responsible to its customer.

Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

Mohan joined a company as Chief Finance Officer (CFO). He observes that the company is involved in concealing tax and engaged in other malpractices. He brought this fact to the notice of the Income Tax Authorities. This action of Mohan would be termed as _______.

  1. cartelisation

  2. misconduct

  3. ethical wrong

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

Whistle blowing is the act of an employee exposing information or activity within an organization that is deemed illegal, unethical, or not correct.

Multiple choice concept of social responsibility organization of commerce and management industrial pollution and degradation of environment environmental values and ethics industrial pollution accelerated with the start of industrial revolution social responsibility towards the environment

The Sarbanes-Oxley Act, $2002$ was enacted and passed in USA to _________.

  1. punish those who committed accounting frauds in the late $1990s$

  2. improve corporate profits

  3. help laid-off employees get their jobs back

  4. help restore confidence in corporate America
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
The U.S. Congress passed the Sarbanes-Oxley Act $2002$, also known as the Corporate Responsibility Act of $2002$, mandated strict reforms to improve financial disclosures from corporations and prevent accounting fraud.
$SOX$ protects employees that report fraud and testify in court against their employers. Companies are not allowed to change the terms and conditions of their employment. They can't reprimand, fire, or blacklist the employee. $SOX$ also protects contractors. Whistle blowers can report any corporate retaliation to the $SEC.$
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

Select the correct option given below :

The management of a joint stock company is vested in the ____________.

  1. Director

  2. Board of directors

  3. Manager

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

In a joint stock company, the management is legally vested in the Board of Directors, who are elected by the shareholders to oversee the company's affairs.

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

Food co-operation of India is _______________.

  1. A joint stock company

  2. Company managed by department

  3. Company established by special act of parliament or state assembly

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

Which of the following is/are disadvantage of a company form of organisation?

  1. The formation of a joint stock company is much more complicated than sole proprietorship or partnership.

  2. A joint stock company has greater tax burden.

  3. Separation of ownership from control

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

All the listed items are recognized disadvantages of a company form of organization: complex formation, higher tax burden, and the separation of ownership from management.

Multiple choice business organisation functions and qualities of a manager leadership in decision-making meaning, definition and characteristics of leadership intro & meaning & importance & principles of directing

It is UNCOMMON to appoint a person as a managing director _________________.

  1. If he is of unsound mind

  2. He has been convicted by count

  3. He is not an insolvent

  4. Both a & b
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A managing director must be of sound mind and have a clean legal record. Being of unsound mind (option A) or having been convicted by a court (option B, assuming 'count' is a typo for 'court') are disqualifications. Option C is incorrectly phrased - being an insolvent is a disqualification, so being 'not an insolvent' would actually be acceptable. D correctly identifies the disqualifying conditions.

Multiple choice history the establishment of east india company anglo-french wars carnatic war carnatic wars

Which of the below given statements are true

A. The English Company was a private enterprise

B. The French Company was state-owned

  1. Only A

  2. Only B

  3. Both A and B

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

The East India Company evolved from a small enterprise run by a group of City of London merchants, which in 1600 had been granted a royal charter conferring the monopoly of English trade in the whole of Asia and the Pacific. 

The French East India Company was one of the several companies created to promote Western European commercial interests in Asia, particularly in India, beginning in the 17th century.