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

Consider the following statements :
A low inventory turnover may be the result of
1. Obsolescence of some of the stock
2. Slow moving inventory
3. Frequent stock-outs
4. Fast-moving inventory
Which of the above statement(s) is/are correct?

  1. 1 and 2

  2. 4 alone

  3. 2 alone

  4. 2 and 3
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Low inventory turnover implies a situation where the company is holding too much of inventory compared to sales. A low inventory turnover may be the result of
1. Obsolescence of some of the stock
2. Slow moving inventory

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

A Secretary's duties under the Companies Act are _________________.

  1. Purely ministerial

  2. Either ministerial or administrative

  3. Managerial

  4. Supervisory
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A Secretary's duties under the Companies Act are either ministerial or administrative. The company secretary is responsible for the efficient administration of a company, particularly with regard to ensuring compliance with statutory and regulatory requirements and for ensuring that decisions of the board of directors are implemented.

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

For the purpose of quorum in a general meeting, joint holders of shares are treated as ________________.

  1. One member

  2. Two members

  3. Equal to the number of joint holders

  4. Disqualified
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Option A is correct.
Joint shareholders will be regarded as one member for the purpose of quorum: Any joint shareholder present at the meeting will be entitled to exercise his/her voting power and will be counted for the quorum as one shareholder. These representatives have all the rights of members including right to vote by proxies.




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 India Companies are governed by ________.

  1. Indian partnership act, $1932$

  2. Companies act, $1956$ as amended from time to time

  3. Societies registration act

  4. all of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
In India companies are governed by the companies act, 1956 amended from time to time. The provisions of the act will apply to:
i) Any body corporate registered under the act.
ii) Insurance company except the ones registered under the insurance act 1938.
iii) Banking company except the ones registered under the Banking company act. 1949.
iv) Company supplying electricity and is not registered in the electricity generation act 1948.
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 term company is defined in section _______ of the Companies Act, $2013$.

  1. $2$

  2. $3(1)(i)$

  3. $3(2)$

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

As per section 2 of the Companies Act, 2013 a company is a company as created under the Companies Act, 2013 or any other previous companies act. 

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

Write a word, term or a phrase which can substitute each of the following statements:

A report to be submitted to the Registrar according to Section 165.

  1. Annual report

  2. Statutory report

  3. Trade report

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

According to section 165 of the companies act 1965 the company has to file statutory report to registrar.

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

Select the correct option given below :

The management of a joint stock company is vested in the ____________.

  1. Director

  2. Board of directors

  3. Manager

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

In a joint stock company, the management is legally vested in the Board of Directors, who are elected by the shareholders to oversee the company's affairs.

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

Food co-operation of India is _______________.

  1. A joint stock company

  2. Company managed by department

  3. Company established by special act of parliament or state assembly

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

Which of the following is/are disadvantage of a company form of organisation?

  1. The formation of a joint stock company is much more complicated than sole proprietorship or partnership.

  2. A joint stock company has greater tax burden.

  3. Separation of ownership from control

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

All the listed items are recognized disadvantages of a company form of organization: complex formation, higher tax burden, and the separation of ownership from management.

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

_____________ are formed by small farmers to work jointly and thereby enjoy the benefits of large scale farming.

  1. Co-operative farming societies

  2. Co-operative marketing societies

  3. Co-operative credit societies

  4. Consumers' co-operative societies
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Co-operative farming societies are formed by small farmers to pool their resources, land, and labor to achieve the economies of scale associated with large-scale farming.