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 business owned by one person is called a:

  1. Corporation

  2. Sole Proprietorship

  3. Partnership

  4. One-Man Band
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A sole proprietorship is defined as a business owned and operated by a single individual. Corporations and partnerships involve multiple owners or specific legal structures.

Multiple choice

An independent not-for-profit organisation based in the US

  1. IFRS Foundation

  2. IFRS Advisory Council

  3. IASB

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

The IFRS Foundation is an independent, not-for-profit organization headquartered in London, not the US. However, among the choices provided, it is the only organization listed that fits the description of the parent body, though the location is factually incorrect in the prompt.

Multiple choice

Who's primarily responsible for setting GAAP?

  1. SEC

  2. CPA

  3. CEOs

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

The Financial Accounting Standards Board (FASB) is the private, non-profit organization responsible for establishing and improving Generally Accepted Accounting Principles (GAAP) in the United States.

Multiple choice

An organization that is owned and operated by its members.

  1. Cooperative

  2. Corporation

  3. Franchise

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

A cooperative (or co-op) is a business organization owned and operated by the people who use its services or are its members, rather than by outside investors.

Multiple choice book keeping and accountancy reserve and fund accounting treatment for depreciation meaning and characteristics of provisions provision for depreciation account

Provisions relating to accounts are contained in sections ______ of the Companies Act,2013.

  1. 120-134

  2. 128-137

  3. 205-230

  4. 199-210
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Provision relating to accounts are contained in sections 128-137 of the Companies Act, 2013.

Following is the list of section:

128 - Books of account, etc, to be kept by company
129 -  Financial statement
130 - Reopening of accounts on court's or Tribunal's orders
131 - Voluntary revision of financial statements or Board's report
132 - Constitution of National Financial Reporting Authority
133 - Central Government to prescribe accounting standards
134 - Financial statement, Board's report, etc
135 - Corporate Social Responsibility
136 - Right of member to copies of audited financial statement
137 - Copy of financial statement to be filed with Registrar