Tag: ownership structures - joint stock company

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Questions Related to ownership structures - joint stock 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 maximum interaction with shareholders is ____________.

  1. at the time of allotment

  2. at the time of dividend distribution

  3. both a & b

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

Companies interact with shareholders primarily during the allotment of shares and when distributing dividends, as these are key financial events involving the owners.

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

In an annual return of a company which is filed with ROC, the particulars to be mentioned are _____________.

  1. list of directors

  2. registered address of company

  3. list of shareholders

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

An annual return is a comprehensive document that includes details about the company's directors, registered office address, and a list of shareholders, among other statutory information.

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

One of the disadvantages of a company form of business is ________.

  1. its full legal cover

  2. recognized legal entity

  3. stock exchange speculation

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

Stock exchange speculation is often viewed as a disadvantage because it can lead to volatility in share prices and may encourage short-term focus rather than long-term value creation.

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

Rajeev is a "member" (a type of owner) of a marine supply business with many shareholders. Rajeevs business is __________________.

  1. a sole proprietorship.

  2. a limited liability partnership.

  3. a limited liability company.

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

A business with many shareholders and limited liability for its owners is typically structured as a company (often referred to as a limited liability company or corporation).

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 capital of a company is divided into number of parts, each one of which is called ________.

  1. dividend

  2. profit

  3. interest

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

The total capital of a company is divided into small, equal units called shares, which represent ownership in the 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

Who has the power to transfer the joint porperty of HUF so as to bind the interest of both adult and minor coparceners?

  1. Son's of the HUF

  2. Duaghters of the HUF

  3. All the co-parceners of HUF

  4. Karta of HUF
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In a Hindu Undivided Family (HUF), the Karta is the manager and head of the family, and he has the authority to manage and transfer family property for the benefit of the family.

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 form of business organisation in which there is separation of ownership  and management is called _______.

  1. sole partnership

  2. partnership

  3. company

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

In a company, ownership is held by shareholders, while the management is handled by the board of directors and professional managers, creating a clear separation.

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

Characteristics of a company.

  1. Transferability of shares

  2. Perpetual existence

  3. Limited liability

  4. All of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Transferability of Shares:
Shares in a company are freely transferable, subject to certain conditions, such that no share-holder is permanently or necessarily wedded to a company. When a member transfers his shares to another person, the transferee steps into the shoes of the transferor and acquires all the rights of the transferor in respect of those shares.
Perpetual Succession:
A company does not cease to exist unless it is specifically wound up or the task for which it was formed has been completed. Membership of a company may keep on changing from time to time but that does not affect life of the company. Insolvency or Death of member does not affect the existence of the company.
Limited Liability:
The liability of the members of the company is limited to contribution to the assets of the company upto the face value of shares held by him. A member is liable to pay only the uncalled money due on shares held by him. If the assets of the firm are not sufficient to pay the liabilities of the firm, the creditors can force the partners to make good the deficit from their personal assets. 
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

Characteristics of a company.

  1. Artificial legal person

  2. Incorporated body

  3. Capital divisible into shares

  4. All of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Artificial persons such as companies, firms, institutions etc.
Legally, a company has got a personality of its own. Like human beings it can buy, own or sell its property. It can sue others for the enforcement of its rights and likewise be sued by others.
A company comes into existence the day it is incorporated/registered. In other words, a company cannot come into being unless it is incorporated and recognised by law. This feature distinguishes a company from partnership which is also a voluntary association of persons but in whose case registration is optional.
The capital of the company is divided into shares which is owned by the shareholders if the company.