Tag: commercial studies

Questions Related to commercial studies

For meeting the expectations of the stakeholders, the key aspect(s) is/are ________.

commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

  1. Providing value to the stakeholders on a regular basis

  2. Defining the requirements out of projects clearly before they begin

  3. Execute the project towards its objective for being successful

  4. All of the above

Show answer
Correct Option: D
Explanation:
Stakeholders refer to any individual or organization whose interest or concern lies with the business.For meeting the expectations of the stakeholders, the key aspects are:
a) Providing value to the stakeholders on a regular basis
b) Defining the requirements out of projects clearly before they begin
c) Execute the project towards its objective for being successful.

The survival of any business can be directly linked to the ability of business to retain its customers. This is because ______________________.

commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

  1. Customers look beyond the intrinsic product quality attributes

  2. It is mandated by Law that companies take care of customer loyalty

  3. Customers are the one and only factor that bring profits or losses to a business

  4. None of the above

Show answer
Correct Option: A
Explanation:

The survival of any business can be directly linked to the ability of business to retain its customers. This is because customers look beyond the intrinsic product quality attributes. Customers are the king pin of any business organization.

As profits increase, more and more non-monetary benefits are expected by which of the following stakeholders?

commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

  1. Government

  2. Creditors

  3. Debtors

  4. Employees

Show answer
Correct Option: D
Explanation:

Stakeholders refer to any individual or organization whose interest or concern lies with the business.As profits increase, more and more non-monetary benefits are expected by employees. Employees refer to persons who work for the business organization.

Among the stakeholders, shareholder mainly focuses on ___________________.

commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

  1. Performance of the company

  2. Return on Investment

  3. Appointment of Auditors

  4. Managing customers

Show answer
Correct Option: B
Explanation:

Among the stakeholders, shareholder mainly focuses on Return on Investment. ROI refers to the proportionate return on the capital employed by the investors.

A customer is an individual who receives or purchases a product or service. While a stakeholder is an individual, group, or organization who is affected by the outcome of a product or service.

commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

A customer is an individual who receives or purchases a product or service. While a stakeholder is an individual, group, or organization who is affected by the outcome of a product or service- this is true. Stakeholder and owners have different purpose.

Directors can be sued by stockholders, if they have __________.

commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

  1. declared unlawful dividends

  2. grossly neglected the interests of stockholders

  3. Either (a) or (b)

  4. None of the above

Show answer
Correct Option: C

When a shareholder wants to rematerialize his shares he should write to _____________.

commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

  1. DP

  2. company

  3. registered office of the company

  4. bank where his DP account is

Show answer
Correct Option: A
Explanation:

When a shareholder wants to rematerialize his shares he should write to depository participant.In dematerialization of shares depository participant  passes the physical shares to company for making it into electronic form. Depository participant refers to the agent between depository and investors

Generally, a shareholder is a stakeholder of the company while a stakeholder is not necessarily a shareholder.

commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

Generally, a shareholder is a stakeholder of the company while a stakeholder is not necessarily a shareholder. Stakeholders include employees, managers, officials, customers etc. Stakeholders involve those individuals or organization who are not the owners only.

If authorized by the____________ a company may received from a shareholder the amount remaining unpaid on shares, even though the amount has not been called up which is known as calls-in-advance.

commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

  1. Memorandum of Association (MOA)

  2. Articles of Associtaion (AOA)

  3. Prospectus

  4. Securities Exchange Board of India.

Show answer
Correct Option: B
Explanation:
Article of Association(AOA):-
The Articles of Association or AOA are the legal document that along with the memorandum of association serves as the constitution of the company. It is comprised of rules and regulations that govern the company’s internal affairs.
The articles of association are concerned with the internal management of the company and aims at carrying out the objectives as mentioned in the memorandum. These define the company’s purpose and lay out the guidelines of how the task is to be carried out within the organization. 

The articles of association cover the information related to the board of directors, general meetings, voting rights, board proceedings, etc.
The articles of association are the contracts between the shareholders and the organization and among the shareholder themselves. This document often defines the manner in which the shares are to be issued, dividend to be paid, the financial records to be audited and the power to be given to the shareholders with the voting rights.

The articles of association can be considered as the user manual for the organization that comprises of the methodology that can be used to accomplish the company’s day to day operations. This document is a binding on the shareholders and the organization and has nothing to do with the outsiders. Thus, the company is not accountable for any claims made by any external party.

The articles of association is comprised of following provisions:

• Share capital, call of share, forfeiture of share, conversion of share into stock, transfer of shares, share warrant, surrender of shares, etc.
• Directors, their qualifications, appointment, remuneration, powers, and proceedings of the board of directors meetings.
• Voting rights of shareholders, by poll or proxies and proceeding of shareholders general meetings.
• Dividends and reserves, accounts and audits, borrowing powers and winding up.
It is mandatory for the following types of companies to have their own articles:
1. Unlimited Companies: The article must state the number of members with which the company is to be registered along with the amount of share capital, if any.
2. Companies Limited by Guarantee: The article must define the number of members with which the company is to be registered.
3. Private Companies Limited by Shares: The private company having the share capital, then the article must contain the provision that, restricts the right to transfer shares, limit the number of members to 50, prohibits the invitation to the public for the further subscription of shares in the form of shares or debentures.

A shareholders is a _________ of a company.

commercial studies stakeholders in commercial organisation internal & external stakeholders and distinction between shareholders, stakeholders and customers stakeholders final accounts of companies

  1. owner

  2. employee

  3. promoter

  4. none of the above

Show answer
Correct Option: A
Explanation:

A shareholders is an owner of a company since they own the shares of stock of a company. They are also known as the members of the corporation.