Tag: elements of business

Questions Related to elements of business

Select the correct option given below:

The quorum for general meeting of a private company according to the Companies Act, 1956 is _______.

elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

  1. 2

  2. 3

  3. 7

  4. 10

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Correct Option: A

Write a word, term or a phrase which can substitute each of the following statements:
____________ quorum required for extra-ordinary general meeting of private company.

elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

  1. Two members

  2. Three members

  3. Five Members

  4. Ten members

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Correct Option: A
Explanation:
Section 103 of the Companies Act, 2013 specifies the criteria for Quorum of a meeting.
In case of a Public company,—
If No. of members as on the date of meeting, Quorum is:
  1. Not more than 1,000: 5 members personally present
  2. More than 1,000 but up to 5,000: 15 members personally present
  3. Exceeds 5,000: 30 members personally present

In the case of a Private company, —
 Quorum - 2 members personally present at the meeting.

Fill in the Blanks:

A private company must have at least _________ Directors.

elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

  1. one

  2. two

  3. three

  4. four

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Correct Option: B

Select out the feature which is NOT found in a private limited company?

elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

  1. Raising capital for the business is easier.

  2. Shares can be bought and sold on the Stock Exchange.

  3. Subscribers of the business have limited liability

  4. The business continues after the death of shareholders

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Correct Option: B
Explanation:

Private limited company is a type of company that offers limited liability, or legal protection to its share holders. It has the following features:

  1. Raising capital for the business is easier.
  2. Subscribers of the business have limited liability.
  3. The business continues after the death of shareholders.

Which of the following statements suits best to private limited company?

elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

  1. It is owned by the government

  2. It is owned by shareholders who can sell their shares in the stock exchange

  3. It is formed for the benefit of society at large

  4. Its accounts can be kept private and it receives little coverage in the business

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Correct Option: D
Explanation:

Private limited companies is a type of company which has limited liability and offers legal protection to its share holders. The accounts of this company are kept private between the members themselves and also it receives little coverage in the business.

A Company which is employing _______ number of employees are required to have a PPF account.

elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

  1. 30

  2. 25

  3. 20

  4. 35

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Correct Option: C

Which of the following statement is true?

elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

  1. Both private and public companies need one director

  2. Private companies need two directors but public companies need 3

  3. Private companies need one director but public companies need two

  4. Both private and public companies need two directors

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Correct Option: B
Explanation:

Minimum number of three directors is required in case of public company while two are required in case of public company and one director in case of One person company.

What is the disadvantage of a public corporation?

elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

  1. No legal entity

  2. Excessive accountability

  3. Lack of availability of managerial talent

  4. No financial autonomy

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Correct Option: B

Private corporation are owned by _______.

elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

  1. private firm

  2. individual owner

  3. government & local govt

  4. none of the above

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Correct Option: C

Limited Liability Partnership form of business organization has been introduced in India by ________.

elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

  1. Indian Companies Act, $1956$

  2. Limited Liability Partnership Act, $2008$

  3. Indian Contract Act

  4. Limited Liability Partnership Act, $2006$

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Correct Option: B