Tag: private, public and global enterprises

Questions Related to private, public and global enterprises

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

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

  1. Macaura V. Northan Assurance Co. Ltd

  2. Jons V. Lipman

  3. CIT V. Meenakshi Mills Ltd.

  4. Salomon V Salomon and Co. Ltd.

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Correct Option: D
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.

Issues affecting the privacy of the employee __________________.

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

  1. Anti-competitive practices

  2. Workplace surveillance

  3. Drug testing

  4. (b) and (c)

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Correct Option: D
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.

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

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

  1. Government Company

  2. Private Company

  3. Producer Company

  4. Subsidiary Company

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Correct Option: B
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.

Premises which are absolutely beyond the clutch of business enterprises are _________________.

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

  1. Non-controllable

  2. Controllable premises

  3. (a) and (b)

  4. (a) or (b)

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Correct Option: A

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

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

  1. Fifty

  2. Seven

  3. Twenty

  4. Two hundred

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Correct Option: D
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.

Which is true as far as a Joint Venture is concerned?

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. The dual ownership arrangement may not lead to conflicts, resulting in battle for control between the investing firms.

  2. Foreign firms entering into joint ventures does not share the technology and trade secrets with local firms.

  3. Joint venture is a very common strategy for entering into foreign markets.

  4. All of the above

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Correct Option: C
Explanation:

A joint venture is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance.

________ can also be described as any form of association which implies collaboration for more than a transitory period.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. Joint venture

  2. Licensing

  3. Contract Manufacturing

  4. Wholly Owned Subsidiaries

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Correct Option: A
Explanation:

A joint venture is a business entity created by two or more parties, generally characterised by shared ownership, shared returns and risks, and shared governance.

_____ makes it possible to execute large projects requiring huge capital outlays and manpower.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. Wholly Owned Subsidiaries

  2. Franchising

  3. Joint venture

  4. Contract manufacturing

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Correct Option: C
Explanation:

Since the joint venture is not a legal entity, it does not enter into contracts, hire employees, or have its own tax liabilities. These activities and obligations are handled through the co-venturers directly and are governed by contract.

Benefits of joint ventures does not include ______________________.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. access to new markets and distribution networks

  2. sharing of risks and costs with a partner

  3. access to greater resources, including specialized staff, technology and finance

  4. the partners have different objectives for the joint venture

Show answer
Correct Option: D
Explanation:

A joint venture is a temporary business association between two or more persons or organisations for profit without forming a permanent partnership, corporation, or other business entity. Members of the joint venture maintain their independence.

Success in a joint venture depends on comprehensive research and a detailed analysis of aims and objectives.

joint ventures private, public and global enterprises public sector, private sector and global enterprises organisation of commerce and management business studies

  1. True

  2. False

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Correct Option: A
Explanation:

  • Employee: If the risks of business ownership scare you and you lack an entrepreneurial spirit, business ownership is likely not for you, whether it be your own.

  • Creative entrepreneur: If you possess a creative mind that feels constricted by boundaries and models, starting your own business is likely your best bet.

  • Executive entrepreneur: If you are comfortable operating within a proven system and value support over autonomous freedom, franchising may be for you.