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 company can ___________.

  1. Enter into contracts

  2. Borrow money

  3. Open banking account in its name

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

Company is a distinct as well as legal entity and would be liable for his own.

Therefore, a company can borrow money, enter into contracts, open bank account in its name, purchase its own shares.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

State the following statement is True or False:
Minimum subscription is guaranteed by the directors.

  1. True

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

Minimum subscription is not guaranteed by the directors. Minimum subscription refers to the minimum shares the company needs to get subscribed from the general public.

Presently, every company needs to raise 90% of the issued capital. Else the company shall refund the whole amount received.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

State the following statement is True or False:
Shareholders take initiative to form a company.

  1. True

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

It is not true that shareholders take initiative to form a company. Shareholders are the one who invests in the company and helps in the capital formation of company. Entrepreneur initiates to form a company with the help of Promoters.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

State the following statement is True or False:
The certificate required by public limited company to start business activities is the certificate of commencement of business.

  1. True

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

A public limited company must obtain a certificate of commencement of business from the Registrar of Companies before it can start its business operations.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Fill in the blank:
A company which can start its business only after securing the certificate of commencement of business is a ____________.

  1. public company

  2. private company

  3. Joint stock company

  4. Co-operative society
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Only public companies are required to secure a certificate of commencement of business before starting operations, as they raise capital from the general public.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Select the term or a phrase which can substitute the following statement:
Name the company which raises it's capital by issuing shares to public.

  1. Joint stock company

  2. Private company

  3. Public company

  4. Government organisation
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A public company is defined by its ability to invite the public to subscribe to its shares, distinguishing it from a private company.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Select the term or a phrase which can substitute the following statement:
Name the type of company which can start it's business after securing 'Trading Certificate'?

  1. Private company

  2. Public company

  3. Sole proprietorship

  4. Joint stock company
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A public company, has to goes through the capital subscription stage and then receives the certificate of commencement. Only after obtaining the trading certificate, a public company can commence its business.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

Fill in the blank:
The company which raises its capital by issuing shares to public is a __________.

  1. public company

  2. private company

  3. joint stock company

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

A public company can raise its capital by issuing shares to public. For doing the same, it has to issue a prospectus which is an invitation to the public to subscribe to the capital of the company and undergo various other formalities.

Multiple choice elements of business ownership structures - joint stock company meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

State the following statements is True or False.

Every public company must hold a statutory meeting.

  1. True

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

Every public company that is a limited company and has a share capital shall, within a period of not less than one month and not more than three months after the date at which it is entitled to commence business, hold a general meeting of the members of the company to be called the "statutory meeting".