Tag: ownership structures - joint stock company

Questions Related to ownership structures - joint stock company

A company limited by guarantee means_________________.

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. To the extent of guarantee given

  2. Unpaid Value of shares

  3. Unlimited

  4. None of the above

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Correct Option: A

A company is exempted to add Ltd or Pvt Ltd at the end of their name it 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. Govt. Company

  3. Defunct Company

  4. None of the above

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Correct Option: D
Explanation:

The name of the company is the indicator of its legal status. When you're starting a small business, deciding its legal structure is one of the first steps. Legal structure is usually determined by the business type, the number of owners or investors it has, and how tax and liability issues are best managed. You'll likely use an abbreviation, such as Inc., Ltd., Co., or LLC, after your business's name to indicate its structure. 

Company, which is registered under section 8 of the companies act,  2013 (earlier section 25 of the companies act, 1956), can take the exemption of omitting the word ‘limited’ or ‘private limited’ in their name.  
A Company which is listed in any stock exchange doesn’t have to additionally add any words in its name extra.

Minimum no of members to be present for a Public Ltd. company meeting 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. 5

  2. 2

  3. 7

  4. 3

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Correct Option: A
Explanation:

In case of a public company five members should be personally present if the number of members as on the date of meeting is not more than one thousand. 

If the quorum is not present within half-an-hour from the time appointed for holding a meeting of the company, the meeting shall stand adjourned to the same day in the next week at the same time and place, or to such other date and such other time and place as the Board may determine; or the meeting, if called by requisitionists under section 100, shall stand cancelled. 

If at the adjourned meeting also, a quorum is not present within half-an-hour from the time appointed for holding meeting, the members present shall be the quorum.

S Ltd. had 9,000 8% preference tires of Rs 100 each, fully paid up. The company decided to redeem these preference shares at par by the issue of sufficient number of equity shares. How much equity shares are required to be issued if new equity shares are to be issued at Rs 12 for a premium including Rs 2 ______________.

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. 90,000

  2. 1,00,000

  3. 5,000

  4. 93,333

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Correct Option: A

___________ are the official record of the proceedings of a 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. Meeting notes

  2. Agenda

  3. Notices

  4. Minutes

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Correct Option: D

The term private company is defined in section ________ of the New Companies Act, $2013$.

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. $2(68)$

  2. $3(1)(iii)$

  3. $3(2)$

  4. $4$

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Correct Option: A
Explanation:
As per Section 2(68) of the companies Act 2013, a Private company is a company which has a minimum 2 directors and minimum paid up share capital of rupees 1 lakh  or any higher amount as may be prescribed and which through its articles -
1) Restricts the right to transfer shares 
2) Limits the number of members to 200 (except in case of one person company).

The Structure in which there is separation of ownership and management is called ______________.

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

  1. Sole proprietorship

  2. Partnership

  3. Company

  4. All business organisations

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Correct Option: C
Explanation:

Company is the form of business organisation in which there is a separation of ownership and management. Company has a separate legal entity from its members. Management professionals of the firm are not considered as the owners of the firm.

S Ltd. acquired fixed assets worth Rs 15,00,000 by issue of shares of Rs 100 at a premium of 25%. The number of shares to be issued by S Ltd. to settle the purchase consideration = ?

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

  1. 12,000 shares

  2. 15,000 shares

  3. 18,750 shares

  4. 11,250 shares

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Correct Option: A

Inventory is also referred to as _______________.

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

  1. Stock

  2. Warehouse capacity

  3. Materials

  4. Materials in hand

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Correct Option: A

Joint Stock Company is board of directors company.

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

  1. True

  2. False

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Correct Option: A