Tag: forms of business organisation - 2

Questions Related to forms of business organisation - 2

PSE's are organisations owned by _____________.

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. Joint Hindu Family

  2. Government

  3. Foreign Companies

  4. Private Entrepreneurs

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Correct Option: B
Explanation:

Public sector enterprise ( PSE ) is the enterprise owned by the union government of India or one of the many state or territorial governments or both. These are the enterprises where the holding power of the government is 51% or more. Hence, PSE's are organisations owned by the central government.

Centralised control in MNC's implies control exercised by _____________.

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. Branches

  2. Subsidiaries

  3. Headquarters

  4. Parliament

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Correct Option: C
Explanation:

Multinational corporation ( MNC ) is an organisation who have branches in many different countries but managed wholly from one country i.e. home country. Hence, centralised control in MNC's implies control exercised by the headquarters.

Which of the following is the most important motive of private firms?

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. Sales motive

  2. Maximising output

  3. Profit motive

  4. All the above

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Correct Option: C
Explanation:

The most important motive of private firms is to maximize their profit. The private firms want to increase the level of their profits which helps in the growth of the company.

The public company has to take approval of SEBI, if public offer for shares exceeds __________ crores.
commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. two

  2. three

  3. five

  4. six

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Correct Option: B
Explanation:

The public company has to take approval of SEBI, if public offers for shares exceeds 3 crores according to the companies act. 

A public company need to have minimum ___________ members.

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. two

  2. five

  3. seven

  4. ten

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Correct Option: C
Explanation:

Under the Companies Act 2013, minimum 7 members are required to start a public company. 

The Act that governs the activities of a company is the Companies Act, 1956.
commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. True

  2. False

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Correct Option: A
Explanation:

The Companies Act 1956 is administered by the Government of India through the Ministry of Corporate Affairs and the Offices of Registrar of Companies, Official Liquidators, Public Trustee, Company Law Board, Director of Inspection, etc. The Act is 658 sections long. The Act contains provisions about Companies, directors of the companies, memorandum and articles of associations, etc. This act states and discusses every single provision requires or may need to govern a company. However, some of the provisions are now amended as per the Companies Act, 2013.

State  the following statement is True of False:

The secretary of a public limited company is elected by shareholders.

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. True

  2. False

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Correct Option: B
Explanation:

This statements is False because of the following reasons:


(i) The companies Act,1956 defines a joint stock company as" a company having a permanent paid up or normal share capital of fixed amount divided into share also of fixed amount, as held and transferable as stock , of divided and held partly in the other , and formed on the principle of having for its members the holder of those share or that stock and no other persons."


(ii)  Since, the management of the company is entrusted to the Board of Directors, only the Board of Directors can appoint a qualified company secretary.

(iii) A company secretary is appointed by the Board of Directors after its incorporation , to assist them in carrying out the administration of the company.

(iv) The shareholder have a voting right to elect a person from among themselves.

(v)  A secretary need not be a shareholder.

(vi) He is an outsider not belonging to the constituency of shareholders.

(vii) Hence, the secretary of a public limited company is elected by the Board of Directors.

State the following statement is True or False:
Internal rules and regulations of a company are the articles of association.

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. True

  2. False

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Correct Option: A
Explanation:

Articles of Association is a document which prescribes the rules and bye-laws for the general management of the company and for the attainment of its object as given in the memorandum .It is a document of paramount significance in the life of a company as it contains the regulations for the internal administration of the company’s affairs.

State the following statement is True or False:
Another name of situation clause is the domicile clauses.

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. True

  2. False

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Correct Option: A
Explanation:

The second clause of the MOA, the 'situation clause' or ‘domicile’ clause specifies the location of the company’s registered office. The domicile clause will not exactly contain the address of the registered office, but the state or union territory in which the registered office of the company is located. Registered office means a place where the common seal, statutory books etc., of the company are kept.The company should intimate the location of registered office to the registrar within thirty days from the date of incorporation or commencement of business.

Write a word or a term or a phrase which can substitute each of the following statements :
A model set of 99 articles attached to Companies Act, 1956.

commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

  1. Memorandum of Association

  2. Articles of Association

  3. Table A

  4. Prospectus

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Correct Option: C
Explanation:

Table A is the name given to the prescribed format for articles of association of a company limited by shares under the Companies Act 1985 and earlier legislation. When a company limited by shares was incorporated, it didn’t need to file articles if it used ‘Table A’ as its articles.  Table A has now been replaced by the new model articles for all companies registered from 1st. October 2009. Existing companies will still be regulated by their existing articles, based on the version of Table A in force when the company was registered or the latest articles adopted. Such companies may find it beneficial to update their articles by adopting new regulations based on  model articles.