Tag: sectoral organisation of business

Quizzes (11) Questions (30)

Questions Related to sectoral organisation of business

Multiple choice sectoral organisation of business private, public and global enterprises business studies

Company's corporate personality was brought forward in the case of ___________________.

  1. Macaura V. Northan Assurance Co. Ltd

  2. Jons V. Lipman

  3. CIT V. Meenakshi Mills Ltd.

  4. Salomon V Salomon and Co. Ltd.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Salomon v Salomon & Co Ltd [1897] AC 22 (law cite link) was the case that got me interested in corporate law. The principle from the case is very simple - a company is a separate legal entity and thus a juristic "person" in the eyes of the law. Piercing the corporate veil refers to a situation in which courts put aside limited liability and hold a corporation's shareholders or directors personally liable for the corporation's actions or debts. Veil piercing is most common in close corporations.

Multiple choice sectoral organisation of business private, public and global enterprises business studies

Issues affecting the privacy of the employee __________________.

  1. Anti-competitive practices

  2. Workplace surveillance

  3. Drug testing

  4. (b) and (c)
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Privacy Issues in the Workplace. Generally speaking, privacy rights are granted (if at all) by specific laws, rules, or regulations. Personnel Records:Employees generally have a right to privacy in their personnel records, except in a few specific circumstances. Employee privacy rights are the rules that limit how extensively an employer can search an employee's possessions or person; monitor their actions, speech, or correspondence; and know about their personal lives, especially but not exclusively in the workplace.

Multiple choice sectoral organisation of business private, public and global enterprises business studies

Which company has a minimum paid up capital of one lakh rupees or higher? 

  1. Government Company

  2. Private Company

  3. Producer Company

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

The Companies Act, 2013 earlier mandated that all Private Limited Companies have a minimum paid up capital of Rs.1 lakh. This meant that Rs.1 lakh worth of money had to be invested in the company by purchase of the company shares by the shareholders to start business.

Paid-up capital is the amount of money a company has received from shareholders in exchange for shares of stock. Paid-up capital is created when a company sells its shares on the primary market, directly to investors.

Multiple choice sectoral organisation of business private, public and global enterprises business studies

What are the limits of number of members in a Private Company?

  1. Fifty

  2. Seven

  3. Twenty

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

This type of entity limits the owner's liability to their ownership stake and restricts shareholders from publicly trading shares. Members: You can start a private limited company with a minimum of only 2 members (and maximum of 200), as per the provisions of the Companies Act 2013. Minimum 2 and Maximum 20 can only be a part of partnership firm while for private limited company, 2 to 50 members in case of Private Company and Minimum 7 members in case of Public Company can be a part and in LLP's there has to be minimum 2 partners and there is no limitation of maximum number of partners.

Multiple choice organisation of commerce and management sectoral organisation of business classification of commercial organisations public, private and joint sector private and public sector departmental undertakings meaning and features of departmental undertaking

The committee which is, set up to advise the Central Government and Company Law Board on the administration of the companies Act is the Advisory Committee.

  1. True

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

For the purpose of advising the Central Government and the Company Law Board on such matters arising out of the administration of this Act as may be referred to it by that Government or Board, the Central Government, may constitute an 'Advisory Committee' consisting of not more than five persons with suitable qualifications.

Multiple choice organisation of commerce and management sectoral organisation of business classification of commercial organisations public, private and joint sector private and public sector departmental undertakings meaning and features of departmental undertaking

State with reasons whether the following statements are True or False:
A public company need not issue prospectus for raising capital. 

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
(i) A prospectus usually is in the form of a statement giving all material information about the company and showing its future prospects. 
(ii) It aims at inviting investors to subscribe for its shares and debentures. 
(iii) It is a must for every public company to prepare its prospectus. 
(iv) It is through the prospectus that the prospective investors know details of the shares offered by the company. 
(v) Otherwise, the investors would have no idea of the shares that a public company is selling
(vi) All detailed information about a company like its business, management, financial structure etc. are provided in the prospectus. 
(vii) The main idea to issue a prospectus is to collect capital for the company from the general public. 
(viii) Although the main aim of the prospectus is to invite or attract investors towards the company still no mis-statement or false claim shall be made in it to deceive the investors. 
(ix) It should contain true, fair and correct information. 
(x) Hence, it is very necessary fora public company to issue a prospectus, as it has to collect its capital from the general public. 
Multiple choice organisation of commerce and management sectoral organisation of business classification of commercial organisations public, private and joint sector private and public sector departmental undertakings meaning and features of departmental undertaking

Fast growth in the private sector was after the policy reforms announced in _____________.

  1. $1992$

  2. $1991$

  3. $1998$

  4. $2001$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

According to the policy of 1991 the role of public sector was limited only to four industries; rest all the industries were opened for private sector also. Privatization refers to giving greater role to private sector and reducing the role of public sector. 

To execute policy of privatization government took the following steps:(a) Disinvestment of public sector, i.e., transfer of public sector enterprise to private sector (b) Setting up of Board of Industrial and Financial Reconstruction (BIFR). 

This board was set up to revive sick units in public sector enterprises suffering loss. (c) Dilution of Stake of the Government. If in the process of disinvestment private sector acquires more than 51% shares then it results in transfer of ownership and management to the private sector.

Multiple choice organisation of commerce and management sectoral organisation of business classification of commercial organisations public, private and joint sector private and public sector departmental undertakings meaning and features of departmental undertaking

All the appointed directors are required to submit their consent letter to Registrar. It is true for ______________.

  1. private ltd. co.

  2. public ltd. co.

  3. all the companies

  4. not relevant
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In accordance with the section 152(5) of the companies act 2013, a person appointed as a director of any company shall not act as a director unless he gives his consent to hold the office as director and such consent has been filed with the Registrar within 30 days of his appointment.

Multiple choice organisation of commerce and management sectoral organisation of business classification of commercial organisations public, private and joint sector private and public sector departmental undertakings meaning and features of departmental undertaking

Below mentioned are the features of a public enterprise except __________.

  1. its primary objective is to serve Government departments

  2. they are not accountable to public

  3. in some specific areas, they have monopoly.

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

Characteristics of public sector entities are- 
  • Public accountability.
  • Multiple objectives.
  • Rights, powers and responsibilities 
  • Lack of equity ownership.
  • Operating and financial frameworks set by legislation.
  • The importance of the budget.
  • Governance structures.
  • Nature of resources