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

The term private company is defined in section ________ of the New Companies Act, $2013$.

  1. $2(68)$
  2. $3(1)(iii)$
  3. $3(2)$
  4. $4$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
As per Section 2(68) of the companies Act 2013, a Private company is a company which has a minimum 2 directors and minimum paid up share capital of rupees 1 lakh  or any higher amount as may be prescribed and which through its articles -
1) Restricts the right to transfer shares 
2) Limits the number of members to 200 (except in case of one person company).
Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

The Structure in which there is separation of ownership and management is called ______________.

  1. Sole proprietorship

  2. Partnership

  3. Company

  4. All business organisations
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Company is the form of business organisation in which there is a separation of ownership and management. Company has a separate legal entity from its members. Management professionals of the firm are not considered as the owners of the firm.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

S Ltd. acquired fixed assets worth Rs 15,00,000 by issue of shares of Rs 100 at a premium of 25%. The number of shares to be issued by S Ltd. to settle the purchase consideration = ?

  1. 12,000 shares

  2. 15,000 shares

  3. 18,750 shares

  4. 11,250 shares
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Purchase consideration = 15,00,000. Issue price per share = 100 + 25% of 100 = 125. Number of shares = 15,00,000 / 125 = 12,000.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

Inventory is also referred to as _______________.

  1. Stock

  2. Warehouse capacity

  3. Materials

  4. Materials in hand
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Inventory refers to the raw materials, work-in-progress goods, and finished goods that a company holds for sale or use in production. It is commonly known as stock.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

Joint Stock Company is board of directors company.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A Joint Stock Company is a legal entity managed by a board of directors, who are elected by the shareholders to oversee the company's operations.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

A company comes into existence only after its ____________.

  1. Promotion

  2. Formation

  3. Registration

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

Registered or Incorporated Companies
These companies are formed/incorporated under the companies act passed by the government. These companies come into existence only after these are registered under the act and the certificate of incorporation is passed by the Registrar of companies.


Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

A Joint Stock Company is superior form of business organisation. 

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A joint stock company can be considered as a superior form of business organisation in which people come together to pursue a business activity and it also provides employment to the youth and helps in increasing the GDP of a nation.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

A Joint Stock Company is an artificial person created by law.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

It is true that joint stock company is an artificial person created by law. Company has a separate legal entity and have an existence in the eyes of law. It can purchase and sell property or rights in its own name and have a perpetual succession.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

Registration of Joint Stock Company is optional.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

It is true that registering the company is optional. One can start the business with other ways also rather than registering like acquiring tax license, service tax registration.

Multiple choice elements of business joint stock company 1 - definition, classification, advantages and disadvantages meaning and features of joint stock company concept, features, advantages and disadvantages of joint stock company ownership structures - joint stock company

The liability of members of a Joint Stock Company is unlimited.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The liability of the members of Joint stock company is unlimited i.e. assets of members cannot be used to pay the debts of company as company has a separate legal entity from its members and is termed as an artificial person in terms of law.