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 book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

The Institute of Chartered Accountants of India (ICAI) constituted the _________, with a view to harmonizing the diverse accounting policies and practices in use in India.

  1. Standards Board of Accounting (SBA)

  2. Accounting Standards Board (ASB)

  3. Accounting Standards Committee (ASC)

  4. Accounting Committee (AC)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Institute of Chartered Accountants of India (ICAI) constituted the Accounting Standards Board (ASB) on 21st April, 1977 ) to harmonise the diverse accounting policies and practices in use in India. 

ASB of the ICAI has been issuing accounting standards since then. It has issued 32 Accounting Standards so far.

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

Which of the following is not regarded as the fundamental concept that is identified by AS-1?

  1. Separate Entity Concept

  2. Prudence

  3. Going Concern Concept

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

AS-1 identifies three fundamental accounting assumptions: Going Concern, Consistency, and Accrual. The Separate Entity concept is a basic accounting principle, but it is not listed as a fundamental assumption in AS-1.

Multiple choice book keeping and accountancy accounting standards: concept and objectives accounting standards accounting standards (as) and ifrs accounting systems and reporting standards

Accounting Standards issued by the Institute of Chartered Accountants of India are mandatory to which of the following _______________.

  1. Sole proprietor

  2. Partnership firm

  3. Corporate body

  4. All the three
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Institute of Chartered Accountants of India has formed Accounting Standards which are mandatory for all the body corporate. 

Multiple choice commercial applications bases of accounting cash and mercantile system basis of accounting basis of accounting system

Whenever a company wants to alter its Memorandum of Association for changing the place of registered office from one state to another, it has to pass _________________.

  1. Ordinary resolution

  2. Special resolution

  3. Resolution requiring special notice

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

Changing the registered office of a company from one state to another involves altering the Memorandum of Association, which requires a special resolution under the Companies Act.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Section 3(1) of Companies Act, 2013 defines the term _________.

  1. director

  2. OPC

  3. dormant company

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

Section 3(1) of the Companies Act, 2013, outlines the formation of a company, including the specific provision for the formation of a One Person Company (OPC).

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

As per Companies Act, 2013 a dormant company is ___________.

  1. company registered for further product

  2. inactive company

  3. no significant accounting transactions

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

A dormant company under the Companies Act, 2013, is one that has been formed for a future project, has no significant accounting transactions, or is inactive. Therefore, all these descriptions apply.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Small company is _________.

  1. public company

  2. other than a Public company

  3. holding company

  4. company registered under section 8
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A small company is defined by its paid-up capital and turnover thresholds and is specifically a private company, meaning it is other than a public company.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Section 2(62) of the companies Act, 2013 has provisions related to ___________.

  1. Small Company

  2. One Person Company

  3. Resident director

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

Section 2(62) of the Companies Act, 2013, provides the definition and provisions related to a One Person Company (OPC).

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

A private company cannot have more than _______

  1. 250 members including past and present employee members

  2. 200 members including past and present employee members

  3. 500 members excluding past and present employee members

  4. 500 members including past and present employee members
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under the Companies Act, 2013, the maximum number of members for a private company is 200, excluding past and present employee members.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

A Company is having 1500 shareholders. As per Companies Act, 2013 it __________.

  1. may maintain records in electronic form

  2. compulsorily maintain records in electronic form

  3. there is no provision for maintaining of records as per Company Act, 2013

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

Companies with a large number of members (typically 200 or more) are often required to maintain records in electronic form under the Companies Act, 2013.

Multiple choice business organisation and correspondence companies act, 2013 - introduction and characteristics introduction to companies companies act, 2013 company

Secretarial Audit is compulsory for _____________.

  1. listed company

  2. companies having, paid up capital of Rs.100 crore

  3. public company

  4. both a and b
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Secretarial Audit is mandatory for listed companies and certain public companies based on paid-up capital or turnover thresholds.