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

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.

Multiple choice

Every shareholder is

  1. member of company

  2. not a member of company

  3. owner of company

  4. Both (2) and (3)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Every person holding equity share capital of the company and whose name is entered as a beneficial owner in the records of the depository shall be deemed to be a member of the concerned company.

Multiple choice

Which of the following documents, in case of a company, is called the charter of a company?

  1. Memorandum of Association

  2. Articles of Association

  3. Certificate of Incorporation

  4. Certificate of Commencement of Business
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An important step in the formation of a company is to prepare a document called 'Memorandum of Association'. It is the charter of a company and is a very important document as it contains the basic conditions on which the company is incorporated.

Multiple choice

The conclusive evidence of registration of firm is

  1. the register of firms maintained by the registrar of the firm

  2. the certificate of registration of the firm

  3. a certified copy of the register of firms

  4. examination of submitted particulars
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

After providing certificate, the registrar shall record an entry in the register of firms. So, it is the conclusive evidence of registration of firm.

Multiple choice

Articles of association are for

  1. external affairs of a company

  2. internal affairs of a company

  3. both (1) and (2)

  4. public company

  5. private company
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

(2) Articles of association contain the rules that govern the management of the internal affairs of a company.

Multiple choice

A body corporate or corporation is a company

  1. incorporated outside Pakistan

  2. inside Pakistan

  3. listed on stock exchange

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

(1) A body corporate or corporation under Companies Act, 2013 is a company incorporated outside India.

Multiple choice

Books and papers of account are

  1. same

  2. different

  3. anything containing information about the company

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

(1) Books and papers of an account are the same.