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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

What is the minimum number of members required to form a private company?

  1. 1

  2. 2

  3. 3

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

As per Section 3 of the Companies Act, 2013, a private company must have a minimum of 2 members.

Multiple choice

Which of the following is not a type of company recognized under the Companies Act, 2013?

  1. Public Company

  2. Private Company

  3. Limited Liability Partnership

  4. One Person Company
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Limited Liability Partnership is not a type of company recognized under the Companies Act, 2013. It is a separate legal entity governed by the Limited Liability Partnership Act, 2008.

Multiple choice

What is the maximum number of directors that a public company can have?

  1. 10

  2. 12

  3. 15

  4. 20
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

As per Section 149(1) of the Companies Act, 2013, a public company can have a maximum of 15 directors.

Multiple choice

Which section of the Companies Act, 2013 deals with the appointment of an auditor?

  1. Section 139

  2. Section 140

  3. Section 141

  4. Section 142
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Section 139 of the Companies Act, 2013 deals with the appointment of an auditor.

Multiple choice

Which of the following is not a requirement for the registration of a company under the Companies Act, 2013?

  1. Name of the company

  2. Registered office address

  3. Memorandum of Association

  4. Articles of Association
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Registered office address is not a requirement for the registration of a company under the Companies Act, 2013. However, it is required to be filed with the Registrar of Companies after the incorporation of the company.

Multiple choice

Which of the following is not a ground for disqualification of a director under the Companies Act, 2013?

  1. Conviction for an offence involving moral turpitude

  2. Unsound mind

  3. Being a minor

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

Being a foreigner is not a ground for disqualification of a director under the Companies Act, 2013.

Multiple choice

What is the minimum number of shareholders required to call an extraordinary general meeting?

  1. 10%

  2. 25%

  3. 50%

  4. 75%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

As per Section 100(1) of the Companies Act, 2013, the minimum number of shareholders required to call an extraordinary general meeting is 10% of the total number of shareholders.

Multiple choice

Which section of the Companies Act, 2013 deals with the winding up of a company?

  1. Section 270

  2. Section 271

  3. Section 272

  4. Section 273
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Section 270 of the Companies Act, 2013 deals with the winding up of a company.

Multiple choice

Which of the following is not a mode of winding up a company under the Companies Act, 2013?

  1. Voluntary winding up

  2. Compulsory winding up

  3. Fast-track winding up

  4. Scheme of arrangement
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Scheme of arrangement is not a mode of winding up a company under the Companies Act, 2013.

Multiple choice

What is the minimum number of members required to form a one person company?

  1. 1

  2. 2

  3. 3

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

As per Section 2(62) of the Companies Act, 2013, a one person company can be formed by a single member.

Multiple choice

Which of the following is not a requirement for the registration of a one person company?

  1. Name of the company

  2. Registered office address

  3. Memorandum of Association

  4. Articles of Association
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Articles of Association is not a requirement for the registration of a one person company. However, it is required to be filed with the Registrar of Companies after the incorporation of the company.

Multiple choice

What is the Sarbanes-Oxley Act (SOX)?

  1. A law that was passed in the United States in 2002 in response to a number of corporate scandals.

  2. A law that requires publicly traded companies to disclose more information about their financial condition.

  3. A law that created the Public Company Accounting Oversight Board (PCAOB).

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

The Sarbanes-Oxley Act (SOX) is a law that was passed in the United States in 2002 in response to a number of corporate scandals. It requires publicly traded companies to disclose more information about their financial condition, and it created the Public Company Accounting Oversight Board (PCAOB).

Multiple choice

Who can start a chit fund?

  1. Any individual

  2. Any company

  3. Any society

  4. Any trust
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Only a society can start a chit fund in India. The society must be registered under the Societies Registration Act, 1860.

Multiple choice

What is the Sarbanes-Oxley Act of 2002?

  1. A law that reformed the regulation of accounting and auditing in the United States.

  2. A law that created the PCAOB.

  3. A law that increased the penalties for financial fraud.

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

The Sarbanes-Oxley Act of 2002 reformed the regulation of accounting and auditing in the United States, created the PCAOB, and increased the penalties for financial fraud.

Multiple choice

What is the current status of the Polaroid Corporation?

  1. It is still in business.

  2. It went bankrupt in 2001.

  3. It was acquired by another company.

  4. It was dissolved.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Polaroid Corporation was acquired by PLR IP Holdings, LLC in 2017.