Tag: business studies

Questions Related to business studies

The company which is incorporated under a special royal charter issued by the king or head of the state is called _______.

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

  1. Statutory companies

  2. Registered companies

  3. Chartered company

  4. Cooperative organisation

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Correct Option: C
Explanation:

A royal charter is a formal document issued by a monarch as letters patent, granting a right or power to an individual or a body corporate. They were, and are still, used to establish significant organisations such as cities (with municipal charters) or universities and learned societies.

A corporate charter  simply referred to as "charter" or "articles of incorporation" is a written document filed with a U.S. state by the founders of a corporation detailing the major components of a company such as its objectives, its structure and its planned operations.

In the word of ______________" a public Corporation is an organization that is clothed with power of the government, but is possessed with the flexibility and initiative of private enterprise."   

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

  1. Roosevelt

  2. Schumpeter

  3. Prof. Robson

  4. Ronaldo

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Correct Option: A
Explanation:

According to President Roosevelt,- “It is clothed with the powers of the government but possessed of the flexibility and initiative of a private enterprise.” Public corporations are free to take quick decisions which is very necessary for the success of a business concern. There is no government interference. There is no rigidity in their working as in case of departmental undertakings. The flexibility is necessary in the case of business undertakings. Its management is vested in a Board of Directors, appointed or nominated by the Government. But there is no Governmental interference in the day-to-day working of the corporation.

The organization form of public sector enterprise does not include ______.

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

  1. departmental undertaking

  2. statutory (or public) corporation

  3. government company

  4. subsidiary to public company

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Correct Option: D
Explanation:

The subsidiaries remain private. They are private subsidiaries of a public company. 

Think about it if a subsidiary went public, that would mean that its shares were being offered to the public, instead of all being owned by the parent company, and so it would no longer be a subsidiary.

Accepting of deposits from public in case of private company is ____________.

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

  1. prohibited

  2. restricted

  3. acceptable

  4. None of these

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Correct Option: A
Explanation:

Companies borrow from various sources like banks and various other financial institutions. Whereas,Public Limited Companies borrow from mass public by accepting public deposits.

Private Companies are strictly prohibited from accepting any loan or deposits from the public. As per definition of Private limited Company as given under section 2 clause 68 of Companies Act, 2013. Private Company means a Company which by its articles prohibits any invitation to the public to subscribe for any securities of the company.

Minimum number of members in case of private company is ____________.

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

  1. $1$

  2. $2$

  3. $3$

  4. $5$

Show answer
Correct Option: B
Explanation:

A private limited company with a minimum of only 2 members (and maximum of 200), as per the provisions of the Companies Act 2013. Limited liability: The liability of each shareholder or member is limited.

Every business undertaking is _______ entity.

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

  1. an independent

  2. a dependent

  3. a social

  4. none of above

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Correct Option: A
Explanation:
Every business undertaking is an independent entity. It has its own assets and liabilities. It has its own way of functioning. The profits earned or losses incurred by one firm cannot be accounted for by any other firm. It has its own assets and liabilities. The debts owned by one undertaking cannot be recovered from any other undertaking.

_________ refers to those industries which require huge infrastructure, man power and a have influx of capital assets.

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

  1. Large scale industries

  2. Small scale industries

  3. Both (a) and (b)

  4. (a) or (b)

Show answer
Correct Option: A
Explanation:

Big business involves large-scale corporate-controlled financial or business activities. As a term, it describes activities that run from "huge transactions" to the more general "doing big things".

In India, industries with a fixed asset of more than ________ are called large scale industries.

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

  1. Two million rupees

  2. One hundred million rupees

  3. One million rupees

  4. Five million rupees

Show answer
Correct Option: B
Explanation:

Big business involves large-scale corporate-controlled financial or business activities. As a term, it describes activities that run from "huge transactions" to the more general "doing big things".

Here are some advantages of large scale industries: They provide an impetus to the industrialization of the country. Large scale industries, usually, produce capital and basic goods (instruments, machines, chemicals, etc.)  Also, the employment opportunities created by large scale industries are huge.
Examples of large scale industries include fertilizer, cement, natural gas, coal, metal extraction, metal processing, petroleum, natural gas, mining, electrical, petrochemical, food processing units, tourism, banking, sugar, construction, automobile, communication equipment, cement, chemicals, earth movers, consumer.

In Private Company, member of the company is not less than_________.

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

  1. Seven

  2. Ten

  3. Two

  4. Eight

Show answer
Correct Option: C
Explanation:

Minimum 2 and maximum 200 members: A private company can have a minimum of just two members(but just one is enough if it a One Person Company), and maximum of upto 200 members. Transferability of shares restricted: Private companies cannot freely transfer their shares to the public like public companies.

Which of the following are kinds of companies?

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

  1. Private companies

  2. Producer companies

  3. Both (a) and (b)

  4. None of the above

Show answer
Correct Option: C
Explanation:

A company is any entity that engages in business. Companies can be structured in different ways. For example, your company can be a sole proprietorship, a partnership, or a corporation. Depending on which different type of company you're dealing with, it may be owned by one person or a group of people.