Tag: public sector enterprises

Questions Related to public sector enterprises

Which of the following statement is NOT correct with respect to a Board Meeting?

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. No time limit for serving the notice is prescribed by the Act.

  2. The Board meeting should be held only at registered office of the company

  3. The Board meeting can also be held on a public holiday

  4. The BM can be held even after the normal business hours

Show answer
Correct Option: B
Explanation:

The Board meeting should be held only at registered office of the company- this statement is not correct with respect to a Board meeting. The board meeting can be held at any place.. Board meeting is generally held by the directors of the company.

Shares of _________ company are freely transferable.

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. Private Company

  2. Public Company

  3. Both (a) & (b)

  4. None of the above

Show answer
Correct Option: B
Explanation:

Private company'is a company, which restricts the right to transfer its shares. In the case of a public company, the Act provides that the shares or debentures and any interest of the company are freely transferable. 

Free transferability of shares in public.  restricts the right to transfer its shares, if any; While public company is a company which is not a private company and moreover, the shares of a public company are freely transferable.

Which of the following statements is not true in respect of holding the Annual General Meeting?

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. AGM should be held in every calender year

  2. AGM should be held within six months from the end of financial year

  3. The gap between two AGM's should not exceed fifteen months

  4. Private company is not required to hold an AGM

Show answer
Correct Option: D
Explanation:

Private company is not required to hold an AGM- this statement is not true in respect of holding the Annual General Meeting. Every private company must hold an Annual General Meeting. It is conducted by the Board of Directors in order to discuss about the plan and policies which are to be taken to run the company.

How many members should sign the MOA in case of public company___________.

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. 1

  2. 5

  3. 3

  4. 7

Show answer
Correct Option: D
Explanation:

Memorandum of Association helps the shareholders, creditors and any other person dealing with the company to know the basic rights and powers of the company MoA must be signed by at least 2 subscribers in case of a private limited company, and 7 members in case of a public limited company.

Certified MOA & AOA of any Public or Private Company through MCA website. You just need to log in and go to view public document tab. MOA & AOA you will get under INCORPORATION documents tab, you need to pay nominal fees and you can easily download the required document from there.

Which of the following company prohibits any invitation to the public to subscribe for share or debentures? 

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. Private Company

  2. Public Company

  3. Government Company

  4. Both (b) and (c)

Show answer
Correct Option: A
Explanation:

A privately held company, private company, or close corporation is a business company owned either by non-governmental organizations or by a relatively small number of shareholders or company members.Some of the most famous companies in the world are private companies, including Facebook, Ikea, agriculture giant Cargill, and candy maker Mars. Though private companies come in all sizes, a vast majority of private companies are small businesses. If the company is publicly listed, its shares will be listed on the stock exchange and different rules apply to the sale and purchase of the shares. If the company is a private company, the rules about buying and selling shares are set out in the company's constitution and in the COMPANIES ACT 1993.

Administrative corruption includes "gift" to the _______.

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. Factory inspector

  2. Boiler inspector

  3. Pollution control board inspectors

  4. All of above

Show answer
Correct Option: D
Explanation:

Administrative corruption is the abuse of roles, powers, or resources found within public bureaucracies. It may be initiated by line or staff officials, their superiors, or the agency clients.

Political corruption is the use of powers by government officials or their network contacts for illegitimate private gain.Forms of corruption vary, but include bribery, extortion, cronyism, nepotism, parochialism, patronage, influence peddling, graft, and embezzlement.

Which company has a minimum paid-up capital of five lakh rupees or higher?

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. Government Company

  2. Private Company

  3. Public Company

  4. Both (a) and (c)

Show answer
Correct Option: C
Explanation:
A public company, publicly traded company, publicly held company, publicly listed company, or public limited company is a corporation whose ownership is dispersed among the general public in many shares of stock which are freely traded on a stock exchange or in over the counter markets ,Paid-up capital is the amount of money a company has received from shareholders in exchange for shares of stock. Paid-up capital is created when a company sells its shares on the primary market, directly to investors.

Job analysis provides information used for writing _________________.

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

  1. Organisation chart

  2. Policy

  3. Job Description

  4. Procedure

Show answer
Correct Option: C

Feature(s) of a public corporation is/ are ________________________.

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

  1. The primary motive of the corporation is to earn private profits

  2. It cannot sue and cannot be sued and cannot enter into contracts in its own name

  3. Both (A) and (B)

  4. Neither (A) nor (B)

Show answer
Correct Option: D
Explanation:

A public company, publicly traded company, publicly held company, publicly listed company, or public limited company is a corporation whose ownership is dispersed among the general public in many shares of stock which are freely traded on a stock exchange or in over the counter markets.


A company whose shares are publicly traded and are usually held by a large number (hundreds or thousands) of shareholders. The usual British term is public limited company. A government owned company such as an airline or publictransit company. See also corporation sole.

A company is known as the holding company of another company if it has control over the other company.

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

  1. True

  2. False

Show answer
Correct Option: A
Explanation:

A holding company is a company that owns other companies' outstanding stock. A holding company usually does not produce goods or services itself; rather, its purpose is to own shares of other companies to form a corporate group.