Tag: ownership structures - joint stock company

Quizzes (9) Questions (144)

Questions Related to ownership structures - joint stock 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

Which of the following statement about most public limited companies is true?

  1. They are owned and controlled by the employees

  2. They are owned by the directors but controlled by the shareholders

  3. They are owned by shareholders but controlled by directors

  4. They are owned and controlled by the promoters
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Public limited companies are the companies which are owned by the state government. They work for the society at large. They are owned by the directors of the company. The directors appoints shareholders who manages all the operations of the 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

Minimum paid up share capital in case of a public company is _______.

  1. 1 Lakh

  2. 3 Lakhs

  3. 5 Lakhs

  4. 7 Lakhs
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

According to the provisions of the Indian Companies Act, 2013, minimum paid up share capital in case of a public company is Rs. 5 lakhs.

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

The companies are governed by the Indian Companies Act _____________________.

  1. Indian Companies Act, $2013$

  2. Indian Companies Act, $1957$

  3. Indian Companies Act, $1958$

  4. Indian Companies Act, $1959$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The current primary legislation governing companies in India is the Companies Act, 2013.

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

The maximum number of members in a public company are _____.

  1. $20$

  2. $50$

  3. $70$

  4. There is no limit
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Unlike private companies, which have a cap on the number of members, public companies have no limit on the number of members.

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

Which option is NOT suitable for winding up of a company?

  1. Dissolving or winding up by agreement.

  2. Dissolving or winding up by law.

  3. Dissolving or winding up by creditors with the help of law.

  4. Dissolving or winding up by members with the help of law.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Winding up is a legal process governed by law; 'winding up by agreement' is not a standard legal term for the formal dissolution process of a 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

Which is NOT a feature of an incorporated company?

  1. Transferability of shares.

  2. Limited liability

  3. Common seal

  4. It is an agent
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An incorporated company is a separate legal entity and not an agent of its members; it acts on its own behalf.

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

Which one of the following statements in respect of a public limited company is correct?

  1. There can be less than 7 members.

  2. The convent of directors and their contract to purchase qualificationshares, if any, required must be filed.

  3. Remuneration of directors is not controlled by any provision of companies Act

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

Public companies must file the consent of directors and their contract to purchase qualification shares if required by the Articles of Association.

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

Number of months the company can continue its business u/s 45__________________.

  1. 1

  2. 2

  3. 5

  4. 6
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Section 45 of the Companies Act (in the context of the 1956 Act) provided a 6-month period for a company to rectify membership issues if it fell below the minimum requirement.