Tag: operative activities in business

Quizzes (5) Questions (18)

Questions Related to operative activities in business

Multiple choice business organisation and correspondence classification of busniess activities concept and types of commerce and industry nature of industries and commerce operative activities in business business as an activity meaning and types of trade trade and aids to trade
State the following statement is True or False:
Articles of Association acts as the charter of the company. 

  1. True

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

The Memorandum of Association is the charter of the company, while the Articles of Association contain the rules and regulations for internal management.

Multiple choice business organisation and correspondence classification of busniess activities concept and types of commerce and industry nature of industries and commerce operative activities in business business as an activity meaning and types of trade trade and aids to trade

If you are going to put Rs. $1,00,000$ in a fixed deposit for a year at $10\%$ rate of interest, then you know how much interest your money will earn. What kind of a decision-making condition is this?

  1. Certain

  2. Uncertain

  3. Risk

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

A decision-making condition is 'certain' when the outcome is known with full information and no variability, such as a fixed deposit interest rate.

Multiple choice business organisation and correspondence classification of busniess activities concept and types of commerce and industry nature of industries and commerce operative activities in business business as an activity meaning and types of trade trade and aids to trade

Limited liability company posses not more than $2$ of the following character
$1$. Limited liability
$2$. Raise funds from public
$3$. No separation of management from owners
$4$. Restriction on number of partners

  1. $2 \& 4$
  2. $1 \& 2$
  3. $1 \& 3$
  4. $1 \& 4$
Reveal answer Fill a bubble to check yourself
A Correct answer
Multiple choice business organisation and correspondence classification of busniess activities concept and types of commerce and industry nature of industries and commerce operative activities in business business as an activity meaning and types of trade trade and aids to trade

Premises which are absolutely beyond the clutch of business enterprises are ________________.

  1. Non-controllable

  2. Controllable premises

  3. Avoidable premises

  4. (B) or (C)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Non-controllable premises refer to external environmental factors, such as government policy or natural disasters, which a business cannot influence or control.

Multiple choice business organisation and correspondence classification of busniess activities concept and types of commerce and industry nature of industries and commerce operative activities in business business as an activity meaning and types of trade trade and aids to trade

Activities involved in physical involvement of goods from the factory to market etc. is called _____________.

  1. logistics

  2. Merger

  3. Mission

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Logistics is the management of the flow of goods between the point of origin and the point of consumption to meet requirements of customers or corporations.

Multiple choice elements of business operative activities in business concept and types of commerce and industry nature of industries and commerce role, branches and types of industry and commerce business as an activity meaning and types of trade trade and aids to trade

The regional offices are headed by the regional sectors.

  1. True

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

It is true that regional offices are headed by the regional sectors.  It is sometimes referred to as branch offices. Regional offices reports to the headquarters or the home offices.

Multiple choice elements of business operative activities in business concept and types of commerce and industry nature of industries and commerce role, branches and types of industry and commerce business as an activity meaning and types of trade trade and aids to trade
The Memorandum of Association is an unalterable document.

  1. True

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

True, section 16 of the act provides that a company shall not alter the conditions contained in its memorandum except in the case in the manner and to the extend provided by the act.

According to Lord Salborne, “The memorandum of association is an important and unalterable (excluding a few conditions) charter. The company is incorporated only for such objects which are given in the Memorandum.”

Multiple choice elements of business operative activities in business concept and types of commerce and industry nature of industries and commerce role, branches and types of industry and commerce business as an activity meaning and types of trade trade and aids to trade

State with reasons whether the following statements are True or False:
Nobody is liable for mis-statement in the prospectus. 

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
(i) Prospectus is a written document giving an invitation to the public to purchase shares or debentures of the company. 
(ii) It provides all the necessary information about a company, its business, the management, financial structure, etc. of a company. 
(iii) A prospectus must be prepared very carefully and accurately. 
(iv) It should contain true and correct information and honest disclosure of facts. 
(v) A company and all those persons (directors, promoters and others) can be held responsible for any mis-statement in the prospectus. 
(vi) These people have to face severe consequences. 
(vii) The shareholder can cancel the contract i.e. they can refuse to take shares and pay for it and can sue the claim for damage or losses. 
(viii) Persons authorising the issue of prospectus containing mis-statement are punishable with imprisonment of two years and a fine upto 5000/-. 
Multiple choice elements of business operative activities in business concept and types of commerce and industry nature of industries and commerce role, branches and types of industry and commerce business as an activity meaning and types of trade trade and aids to trade
'Table A' acts as a silent salesman of the company. 

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
(i) Table 'A' is a model set of articles given by the Companies Act, 1956. 
(ii) If a public limited company does not prepare its own Memorandum of Association at the time of incorporation, it can adopt 'Table A' of the Companies Act. 
(iii) Prospectus, on the other hand is a written invitation to the public to subscribe to the share capital of the company. 
(iv) It gives all material information about.the company. 
(v) It aims at inviting investors towards company for investment in company's securities i.e. shares and debentures. 
(vi) It is must for every public company to prepare its prospectus. 
(vii) It is through the prospectus that the prospective investors know details of shares, offere by the company.
 (iii) All detailed information about company like business, management, financial structure, etc. are provided in the prospectus. 
(ix) It does all the activities like general salesman, so it is the prospectus who act as a silent salesman and not 'Table A'.