Tag: ownership structures - joint stock company

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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 companies must appoint woman director ?
(I) Listed Company
(II) Every  public company having paid up share capital of Rs.100 Crores or more as on the last date of latest audited financial statements.
(III) Every public company having borrowing of Rs.500 Crores or more as on the last date of latest audited financial statements.
(IV) Every other public company having net capital employed of Rs.500 Crores or more as on the last date of latest audited financial statements.
(V) Every public company having turnover of Rs.300 crore or more as on the last date of latest audited financial statements.
Select the correct answer from the options given below -

  1. (I), (II), & (V) of the above

  2. (II), (III), & (IV) of the above

  3. (I) & (III) of the above

  4. (I), (II), (III) & (IV) of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under the Companies Act, specific criteria regarding paid-up capital, turnover, or borrowing thresholds trigger the requirement to appoint at least one woman director for public companies.

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:
Prospectus is issued by a private company.

  1. True

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

A public listed company who intends to offer shares or debentures can issue prospectus. A private company is prohibited from inviting the public to subscribe to their shares and thus cannot issue a prospectus.

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
A company which can start a business after getting the certificate of incorporation is a ____________.

  1. private company

  2. public company

  3. joint stock company

  4. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

After certificate of incorporation, a private company can start its business. Incorporation of a Joint stock company is compulsory. Without incorporation, all the contracts would be considered void in the eyes of law and operations of business cannot be carried out.

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
Private company need not hold the __________ .

  1. Statutory meeting

  2. Annual general meeting

  3. Extra-ordinary general meeting

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

A private limited company and a company limited by guarantee not having share capital need not hold a statutory meeting. Statutory meeting must be held within a period of not less than one month and not more than six months after the date on which it is authorized to 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

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

  1. Public company

  2. Private company

  3. Co-operative society

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

After receiving certificate of incorporation, a private company can start its business. Incorporation of a Joint stock company is compulsory. Without incorporation, all the contracts would be considered void in the eyes of law and operations of business cannot be carried out.

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 private company need not hold the statutory meeting.

  1. True

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

A private limited company and a company limited by guarantee not having share capital need not hold a statutory meeting. Statutory meeting must be held within a period of not less than one month and not more than six months after the date on which it is authorized to 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

Select the correct option given below:

The quorum for general meeting of a private company according to the Companies Act, 1956 is _______.

  1. 2

  2. 3

  3. 7

  4. 10
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

For a private company, the Companies Act specifies that the quorum for a general meeting is two members personally present.

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

Write a word, term or a phrase which can substitute each of the following statements:
____________ quorum required for extra-ordinary general meeting of private company.

  1. Two members

  2. Three members

  3. Five Members

  4. Ten members
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Section 103 of the Companies Act, 2013 specifies the criteria for Quorum of a meeting.
In case of a Public company,—
If No. of members as on the date of meeting, Quorum is:
  1. Not more than 1,000: 5 members personally present
  2. More than 1,000 but up to 5,000: 15 members personally present
  3. Exceeds 5,000: 30 members personally present

In the case of a Private company, —
 Quorum - 2 members personally present at the meeting.
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 out the feature which is NOT found in a private limited company?

  1. Raising capital for the business is easier.

  2. Shares can be bought and sold on the Stock Exchange.

  3. Subscribers of the business have limited liability

  4. The business continues after the death of shareholders
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Private limited company is a type of company that offers limited liability, or legal protection to its share holders. It has the following features:

  1. Raising capital for the business is easier.
  2. Subscribers of the business have limited liability.
  3. The business continues after the death of shareholders.