Tag: ownership structures - joint stock company

Questions Related to ownership structures - joint stock company

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 -

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

  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

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Correct Option: A

State the following statement is True or False:
Prospectus is issued by a private company.

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

  1. True

  2. False

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Correct Option: B
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.

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

  1. private company

  2. public company

  3. joint stock company

  4. none of these

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Correct Option: A
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.

Private company need not hold the __________ .
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

  1. Statutory meeting

  2. Annual general meeting

  3. Extra-ordinary general meeting

  4. All of above

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Correct Option: A
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.

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'?

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

  1. Public company

  2. Private company

  3. Co-operative society

  4. Joint stock company

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Correct Option: B
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.

State the following statement is True or False:

The private company need not hold the statutory meeting.

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

  1. True

  2. False

Show answer
Correct Option: A
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.

Select the correct option given below:

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

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

  1. 2

  2. 3

  3. 7

  4. 10

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Correct Option: A

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.

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

  1. Two members

  2. Three members

  3. Five Members

  4. Ten members

Show answer
Correct Option: A
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.

Fill in the Blanks:

A private company must have at least _________ Directors.

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

  1. one

  2. two

  3. three

  4. four

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Correct Option: B

Select out the feature which is NOT found in a private limited company?

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

  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

Show answer
Correct Option: B
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.