Tag: meaning and objectives of public sector enterprises

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Questions Related to meaning and objectives of public sector enterprises

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

Fill in the blank:
A company which can start its business only after securing the certificate of commencement of business is a ____________.

  1. public company

  2. private company

  3. Joint stock company

  4. Co-operative society
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Only public companies are required to secure a certificate of commencement of business before starting operations, as they raise capital from the general public.

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 company which raises it's capital by issuing shares to public.

  1. Joint stock company

  2. Private company

  3. Public company

  4. Government organisation
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A public company is defined by its ability to invite the public to subscribe to its shares, distinguishing it from a private 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

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

  1. Private company

  2. Public company

  3. Sole proprietorship

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

A public company, has to goes through the capital subscription stage and then receives the certificate of commencement. Only after obtaining the trading certificate, a public company can 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

Fill in the blank:
The company which raises its capital by issuing shares to public is a __________.

  1. public company

  2. private company

  3. joint stock company

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

A public company can raise its capital by issuing shares to public. For doing the same, it has to issue a prospectus which is an invitation to the public to subscribe to the capital of the company and undergo various other formalities.

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 statements is True or False.

Every public company must hold a statutory meeting.

  1. True

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

Every public company that is a limited company and has a share capital shall, within a period of not less than one month and not more than three months after the date at which it is entitled to commence business, hold a general meeting of the members of the company to be called the "statutory 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
The statutory meeting is compulsory for a public company .

  1. True

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

Every public company that is a limited company and has a share capital shall, within a period of not less than one month and not more than three months after the date at which it is entitled to commence business, hold a general meeting of the members of the company to be called the "statutory 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 the correct option given below:

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

  1. 2

  2. 5

  3. 8

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

Under the Companies Act, 1956, the quorum for a general meeting of a public company depends on the number of members, but 5 is the standard answer often cited in older textbooks for specific meeting types.

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:
Before the statutory meeting the secretary has to draft the statutory report.

  1. True

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

The company secretary is responsible for drafting the statutory report, which must be sent to members before the statutory 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

State the following statements is True or False:

The first general meeting of a public company is the Statutory meeting.

  1. True

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

The statutory meeting is the first formal general meeting held by a public company after its incorporation.

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 option from the option choices given in below and re-write the completed sentences:
A public company may adopt _____ in place of Articles of Association.

  1. Table A

  2. Memorandum of Association

  3. Prospectus

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
The Articles of Association are drawn for internal administration of the Company. The articles of the company, besides containing the regulations of the company shall also include such additional matters as may be necessary for its management.

Under Companies Act, 1956, it was not mandatory for a public company limited by shares to have its Articles, as it could adopt the entire Table A of its articles; however under Companies Act, 2013, it is mandatory for every company to have its own articles.