Tag: elements of business

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Questions Related to elements of business

Multiple choice 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

Select the correct option given below:

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

  1. 2

  2. 3

  3. 7

  4. 10
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

For a private company, the Companies Act specifies that the quorum for a general meeting is two members personally present.

Multiple choice 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

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.

  1. Two members

  2. Three members

  3. Five Members

  4. Ten members
Reveal answer Fill a bubble to check yourself
A Correct answer
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.
Multiple choice 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

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

  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
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

Multiple choice 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

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

  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
Reveal answer Fill a bubble to check yourself
D Correct answer
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.

Multiple choice 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

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

  1. 30

  2. 25

  3. 20

  4. 35
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under the Employees' Provident Funds and Miscellaneous Provisions Act, establishments employing 20 or more persons are generally required to provide PF benefits.

Multiple choice 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

Which of the following statement is true?

  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
Reveal answer Fill a bubble to check yourself
B Correct answer
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.

Multiple choice 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

What is the disadvantage of a public corporation?

  1. No legal entity

  2. Excessive accountability

  3. Lack of availability of managerial talent

  4. No financial autonomy
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Public corporations are often criticized for excessive accountability to the government and legislature, which can hinder their operational flexibility.

Multiple choice 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

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

  1. Indian Companies Act, $1956$
  2. Limited Liability Partnership Act, $2008$

  3. Indian Contract Act
  4. Limited Liability Partnership Act, $2006$
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Limited Liability Partnership Act, 2008, was the legislation enacted in India to govern LLPs. The other options refer to incorrect acts or years.