Commerce Accountancy · Law Legal Studies

Business Organizations and Corporate Governance

1,402 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

The success of audit of environmental issues would be possible only when the SAI does

  1. the evaluation of the performance entity with reference to established standards and indicators

  2. the evaluation against authentic criteria

  3. Both (1) and (2)

  4. Either (1) or (2)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

(3) The success of audit of environmental issues would be possible only when the SAI does the evaluation of the performance entity and against authentic criteria.

Multiple choice

A private limited company having registered office at Delhi advances monies to another private limited company also at Delhi. Disputes and differences arise relating to the said transaction and parties agree to the arbitration at Mumbai by a retired judge of the Bombay High Court, who both trust. The arbitrator delivers an award at Mumbai. The private limited company which had advanced monies during the pendency of the arbitration proceedings also shiffts its registered office at Mumbai. The award dismisses the claims of the said private limited company. The challenge to the said award can be made

  1. only in the courts at Mumbai, where the arbitration award was pronounced

  2. only in the courts at Delhi

  3. either in the court at Mumbai or in the court at Delhi

  4. in the court at Mumbai also, but the Court at Mumbai will return the objection for filing in the court at Delhi, the challenge being to an award of the retired judge of the Bombay High Court
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

(2)  Only in the court at Delhi, where the cause of action arises or defendant resides. As defendant also resides in Delhi.

Multiple choice

Which of the following statements is correct in relation to subagent?

  1. He is employed by the principal in the business of the agency.

  2. He is employed by the original agent in the business of the agency.

  3. He acts under the control of the principal.

  4. The agent is not responsible to the principal for the acts of the subagent.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Option (1) is incorrect: He is appointed by the original agent of the business. Option (2) is correct: Subagent is an agent of original agent in the business of agency. Option (3) is incorrect: He acts under the control of original agent. Option (4) is incorrect: The agent is fully responsible to the principal for the acts of subagent.

Multiple choice

A company limited by shares means a company having the liability of its members

  1. limited to the amount, if any, unpaid on the shares respectively held by them

  2. unlimited to the amount, if any, unpaid on shares respectively held by them

  3. as specific liability

  4. No such liability is there

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

(1) Company limited by shares means a company having the liability of its members limited to the amount, if any, unpaid on the shares respectively held by them.