Tag: meaning and features of public corporation

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Questions Related to meaning and features of public corporation

Multiple choice organisation of commerce and management government organisation statutory/public corporations meaning and features of public corporation statutory corporations

The maximum Statutory Liquidity Ratio to be maintained by banks is_______________:

  1. 25%

  2. 30%

  3. 35%

  4. 40%
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Statutory Liquidity Ratio (SLR) is the minimum percentage of deposits that a commercial bank must maintain in the form of liquid cash, gold, or other securities. The RBI has the authority to set this, and the statutory limit is 40 percent.

Multiple choice organisation of commerce and management government organisation statutory/public corporations meaning and features of public corporation statutory corporations

Select the correct option given below:

Before the statutory meeting the secretary has to draft the _______.

  1. progress report

  2. annual report

  3. statutory report

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Statutory meeting is the first meeting of the shareholders of a public company having a share capital and is held once in the lifetime of a company. The board of directors of a company shall atleast 21 days before the day on which the meeting is held, forward a report which is called as the statutory report to every member of the company. It should be certified as correct by atleast 2 directors.

Multiple choice organisation of commerce and management government organisation statutory/public corporations meaning and features of public corporation statutory corporations

Food co-operation of India is ________.

  1. a joint stock company

  2. company managed by department

  3. company established by Special Act of Parliament

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Food co-operation of India was set up on 14th January, 1965. It is regulated by the food co-operation act, 1964. Hence, food co-operation of India is company established by special act of parliament.

Multiple choice commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

Which of the following entity is created under an Act of the Parliament or an Act of the State legislature?

  1. Statutory corporation

  2. Government companies

  3. Co-operative society

  4. Limited Liability Partnership
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Statutory corporation refers to public enterprise which is created by a special Act of Parliament or State Legislature. which provides for its management and methods of running them,their powers and privileges are determined and their relation with government departments are specified.
Multiple choice commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

The objects and powers of a statutory corporation ______.

  1. may not change

  2. may not be changed easily

  3. may change easily

  4. none applicable
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is very difficult to form statutory corporations because it requires lengthy documentation, complicated formalities and passing of statue.The policies once approved, the statue once passed cannot be changed easily. It can be done by the parliament only and this is very time consuming.

Multiple choice commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

Which of the following function can a statutory corporation perform?

  1. Acquire property on its own name

  2. Enter into contract

  3. Get sued or can sue

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A statutory corporation is a body corporate and can sue and be sued, enter into contract and acquire property in its own name.

Multiple choice commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

The government appoints advisers to the board of corporation to look over functionality of the statutory corporations.

  1. True

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

The government has a practice of appointing advisors to the Corporation Board which curbs the freedom of the Corporation. If there is any disagreement, the matter is referred to the government for final decisions which further delays action.

Multiple choice commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

The employees of statutory corporations are _____________.

  1. Government employees

  2. Civil servants

  3. Public sector employees

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

The employees of statutory corporations are not government or civil servants or public sector employees and are not governed by government rules and regulations. The conditions of service of the employees are governed by the provisions of the act itself. 

Multiple choice commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

Statutory corporations are wholly owned by ______________.

  1. The state government

  2. The central government

  3. Private sector

  4. All of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Statutory corporations are wholly owned by the central government which has the ultimate financial responsibility and has the power to appropriate its profit and also has to bear the losses of any.

Multiple choice commercial applications government organisation statutory/public corporations meaning and features of public corporation statutory corporations

Statutory corporations are not concerned with the central budget of government.

  1. True

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

Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments.It is a corporate person and has the capacity of acting in its own name.

Examples: Reserve Bank of India, State Bank of India, Life Insurance Corporation, Unit Trust of India, Employees State Insurance Corporation, Oil and Natural Gas Corporation etc. are some examples of statutory corporations.