Tag: ownership structures - joint stock company

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Questions Related to ownership structures - joint stock company

Multiple choice 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

Fill in the blanks:
The constitution of a joint stock company is called _______.

  1. memorandum of association

  2. articles of association

  3. table A

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

Memorandum of Association is the constitution of Joint stock company. It directs or instructs joint stock company. The joint stock company runs in accordance with the memorandum of association. Activities of the joint stock company are directed by the Memorandum of Association. Memorandum of association is regarded as a blueprint as it is needed for the incorporation of the joint stock company. Memorandum of Association is submitted to Company Registrar Office. Basic information and provision of the company are clearly mentioned in the memorandum of association. It defines scopes, objectives, functions of the joint stock company.

Multiple choice 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

Write a word or a term or a phrase which can substitute each of the following statements:
A form of organisation where there is a separation of ownership from management ______________.

  1. Joint Stock Company

  2. Co-operative Society

  3. Public Company

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

In a Joint Stock Company, the shareholders (owners) are distinct from the board of directors and management who run the daily operations, creating a separation of ownership and management.

Multiple choice 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

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 of a company is a legal process governed by specific statutes and court procedures. It cannot be done simply by a private agreement between parties without following the legal framework.

Multiple choice 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

The maximum amount with which a company gets registered is called __________.

  1. authorized share capital

  2. issued share capital

  3. subscribed share capital

  4. paid up share capital
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Authorized share capital, or nominal capital, is the maximum amount of share capital that a company is authorized to issue according to its constitutional documents.

Multiple choice 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

Shares of a company can be brought and sold ________.

  1. in a boardroom

  2. in stock market

  3. through directors

  4. all of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Publicly traded company shares are bought and sold on a stock exchange, which is a centralized market for trading securities.

Multiple choice 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

The liability of a shareholder of a company is to the extent of ________.

  1. face value of shares

  2. unpaid value of shares

  3. both

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

The liability of a shareholder in a limited company is limited to the unpaid amount on the shares they hold. If the shares are fully paid, the shareholder has no further liability.

Multiple choice 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

A Company Secretary _____________________.

  1. has nothing to do with the directors, of the company

  2. is never in touch with any government department

  3. occupies an important place in a corporate setup

  4. does not have to correspond with the investors
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Company secretary occupies an important place in a corporate set up. As per Companies Act 2013, a Company Secretary is a key managerial person.

Multiple choice 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

The language of the minutes of a meeting should be __________________.

  1. In first person

  2. In second person

  3. In third person

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

Minutes of a meeting are formal records of proceedings and decisions; they are written in the third person to maintain objectivity and professional tone.

Multiple choice 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

The official signature of the company is known as ________.

  1. company logo

  2. company seal

  3. common seal

  4. common signature
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A common seal is the official signature of a company, used to authenticate documents that require the company's formal approval.

Multiple choice 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

For a forthcoming meeting _________.

  1. minutes are prepared

  2. agenda is prepared

  3. letters are prepared

  4. all of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An agenda is a list of items to be discussed at a meeting, prepared in advance to guide the participants.