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

A new company was formed. All the directors appointed in the new company were appointed by XYZ Ltd. Thus the new company is __________ of XYZ Ltd.

  1. Holding

  2. Subsidiary

  3. An independent company which has not established business in India.

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

If one company has the power to appoint the majority of the directors of another company, the latter is considered a subsidiary of the former.

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

Within _________ months the company formation should be done after the name approval has been received by the company.

  1. 3 months

  2. 3 days

  3. 3 years

  4. No limitation of time
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Once a company name is approved by the Registrar of Companies, the company must be incorporated within a specified timeframe, which is 3 months under current regulations.

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

Salomon v. Salomon and Company proved that ____________.

  1. Company, is independent person.

  2. A person can be a member as well as creditor.

  3. Shareholder is not liable for the debt of co.

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

The Salomon v. Salomon case established the principle of separate legal entity, limited liability of shareholders, and the fact that a member can also be a creditor 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

A co. was incorporated outside India before April 1, 1956 and is still having its business in India. It is a ______________________.

  1. foreign company

  2. indian company

  3. government Co

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

A company incorporated outside India that establishes a place of business within India is defined as a foreign 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

The companies which are formed under Companies Act. 1956 they will be called as _________________.

  1. Chartered companies

  2. Statutory companies

  3. Registered companies

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

A Company which is formed and registered under the Companies Act, 2013, including the companies which are earlier registered under any of the previous companies act, are called as the Incorporated or Registered 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

Can a company keep more than 21 days notice as the minimum requirements for calling AGM?

  1. Yes

  2. No

  3. It has to be legal

  4. Both a & c
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The 21 days notice is the statutory minimum requirement. A company is free to provide a longer notice period if its articles allow or if it chooses to do so.

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

For public company is should start business only after getting certificate of _______________.

  1. Incorporation

  2. Certificate of Commencement of business

  3. Both

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

Certificate of incorporation is a legal document required at the time of company formation. It is said to be a license to form a company, issued by the state government or, in some jurisdictions, by non-governmental entity. A public limited company having share capital, can not start its business unless it obtains the certificate of commencement of business from the Registrar of Companies. So a public company required both the certificates to start it's 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

It is required that Public Ltd. Co. should hold the statutory meeting just after getting certificate of commencement.

  1. No, can hold after 6 months.

  2. Yes

  3. No, can hold within 6 months

  4. No
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A statutory meeting is the first meeting of the shareholders of a public limited company which is held only once in the life-time of the company.  All the companies, those are required to hold Statutory Meeting shall hold its Statutory Meeting within a period of not less than 1 month nor more than 6 months from the date at which the company is entitled to commence 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

Private company can allot shares without receiving minimum subscription

  1. Yes

  2. No

  3. Unknown

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

A privately held company, private company, or close corporation is a business company owned either by non-governmental organizations or by a relatively small number of shareholders or company members.