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 business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

Sec. 25 companies should pay stamp duty for registering MOA and AOA _______________.

  1. Yes

  2. No

  3. Not specified

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

Section 25 companies (non-profit organizations) are generally exempt from stamp duty on the registration of their Memorandum and Articles of Association in many jurisdictions to encourage social welfare activities.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

One out of the below mentioned statements is false. Pick it ________________.

  1. A registered company whose members have a liability limited, at the time of winding up of company their liability becomes unlimited.

  2. A publicly owned company is a company whose shares are held by public.

  3. When companies shares are held by individuals who are associated with the management of firm it is closely held company.

  4. When a company gods public its true market value is revealed
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Option A is false because the liability of members in a limited company remains limited even at the time of winding up, up to the amount unpaid on their shares. The other options describe standard characteristics of public and closely held companies.

Multiple choice business organisation and correspondence partnership 3 - registration of a partnership firm partnership deed registration of partnership registration of partnership firm

If a firm wants to register itself, it will go to "______".

  1. Registrar of Firms

  2. Registrar of Companies

  3. Court

  4. Any of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

 If a firm wants to register itself, it will go to Registrar of Firms. An application and the prescribed fees are required to be submitted to the Registrar of Firms of the State in which the firm is situated in order to register the firm.

Multiple choice business organisation importance of management introduction and characteristics of management meaning, nature and importance of management basics of management

Board of directors of any company is normally concerned with.

  1. Management

  2. Administration

  3. Health of managers

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

b'Board of directors of any company is normally concerned with Administration. Administration is often described as a top-level function. Administration can be defined as the universal process of efficiently organizing people and resources in order to achieve the organizational objectives.'

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

A manager who is responsible for only cost of company belongs to _____________.

  1. cost center

  2. revenue center

  3. profit center

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

A cost center is a department or function within an organization that incurs costs but does not directly generate revenue.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

In every business transaction, at least _______ parties are involved.

  1. Two

  2. Three

  3. Four

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

Any business transaction will involve at least two parties. One can not do the transaction with himself. One party may be receiver and another will be give. 


For example, XYZ Ltd sold goods to ABC Ltd. In this case, XYZ Ltd is the giver who is transferring the goods and ABC Ltd is the receiver who is accepting the goods.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Characteristic feature NOT found in a company is _______.

  1. Legal entity

  2. Common seal

  3. Affected by insolvency of an individual member

  4. Association of individual members
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A company is a separate legal entity with perpetual succession, meaning it is not affected by the death or insolvency of its members. The other options (legal entity, common seal, association of members) are all standard characteristics of a company.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Business is treated as a separate entity accounts for __________.

  1. role trader

  2. partnership

  3. company

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

Separate entity concept defines that the owner and business are having a separate legal entity in the eye of law. Any amount contributed by the owner is considered as liability to the business. 

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Co-operative society __________.

  1. has a separate legal identity

  2. has no separate legal identity

  3. owners have the ultimate authority

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

A co-operative society is registered under the Co-operative Societies Act, which grants it a separate legal identity distinct from its members. This allows it to own property and enter into contracts in its own name.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

A vacant position that arises because of the resignation of the director can only be filed in __________.

  1. Annual general meeting

  2. Board meeting

  3. Board meeting but expired at the general meeting

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

When a director resigns, the board of directors can fill the vacancy in a board meeting, but this appointment is temporary and must be approved or regularized by the shareholders at the next general meeting.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Sole traders differ from other types of trading organizations. Which of the following statements correctly summarizes the key characteristics of a sole trader's business?

  1. Liability is limited to the providers of loan finance and only the trader takes an active part in managing the business.

  2. The trader has unlimited liability and runs the business in conjunction with the providers of loan finance.

  3. The trader has unlimited liability and must have the business accounts audited.

  4. The trader has unlimited liability, takes sole responsibility for management of the busines.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A sole trader is an individual who owns and manages the business alone. Because there is no legal distinction between the owner and the business, the owner bears unlimited liability for all business debts and is responsible for all management decisions.

Multiple choice

A company that dominates an industry

  1. Partnership

  2. Corporation

  3. Monopoly

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

A monopoly occurs when a single company or entity is the only supplier of a particular commodity or service, allowing it to dominate the market.

Multiple choice book keeping and accountancy accounting equation and business transactions meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

The liability of the shareholders of a public limited company is limited to the extent of ________________.

  1. Par value of the share

  2. Paid up value of the shares

  3. Market price of the shares

  4. Intrinsic value of the shares
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In a company limited by shares, the liability of each shareholder is restricted to the unpaid amount on the shares they hold, which is the paid-up value concept.

Multiple choice civics public health and the government role of the government in health food security and related aspects food security

Which of the following statements is/are true regarding private companies providing public facilities?

  1. They operate it for profit

  2. These facilities are affordable to a few people

  3. Both A and B

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

Facilities that are provided by private companies in the market are for obtaining more and more profits. They provide these facilities in different packaging and attractive labeling for high prices. These prices are affordable only for the rich class people.

Multiple choice elements of business joint stock company - formation 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:
A public company can commence (start) its business only after obtaining the trading certificate.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
A public company, has to goes through the capital subscription stage and then receives the certificate of commencement. Only after obtaining the trading certificate, a public company can commence its business.