Tag: meaning and objectives of public sector enterprises

Quizzes (0) Questions (159)

Questions Related to meaning and objectives of public sector enterprises

Multiple choice commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2
The public company has to take approval of SEBI, if public offer for shares exceeds __________ crores.

  1. two

  2. three

  3. five

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

The public company has to take approval of SEBI, if public offers for shares exceeds 3 crores according to the companies act. 

Multiple choice commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2
The Act that governs the activities of a company is the Companies Act, 1956.

  1. True

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

The Companies Act 1956 is administered by the Government of India through the Ministry of Corporate Affairs and the Offices of Registrar of Companies, Official Liquidators, Public Trustee, Company Law Board, Director of Inspection, etc. The Act is 658 sections long. The Act contains provisions about Companies, directors of the companies, memorandum and articles of associations, etc. This act states and discusses every single provision requires or may need to govern a company. However, some of the provisions are now amended as per the Companies Act, 2013.

Multiple choice commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

State  the following statement is True of False:

The secretary of a public limited company is elected by shareholders.

  1. True

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

This statements is False because of the following reasons:


(i) The companies Act,1956 defines a joint stock company as" a company having a permanent paid up or normal share capital of fixed amount divided into share also of fixed amount, as held and transferable as stock , of divided and held partly in the other , and formed on the principle of having for its members the holder of those share or that stock and no other persons."


(ii)  Since, the management of the company is entrusted to the Board of Directors, only the Board of Directors can appoint a qualified company secretary.

(iii) A company secretary is appointed by the Board of Directors after its incorporation , to assist them in carrying out the administration of the company.

(iv) The shareholder have a voting right to elect a person from among themselves.

(v)  A secretary need not be a shareholder.

(vi) He is an outsider not belonging to the constituency of shareholders.

(vii) Hence, the secretary of a public limited company is elected by the Board of Directors.

Multiple choice commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

State the following statement is True or False:
Internal rules and regulations of a company are the articles of association.

  1. True

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

Articles of Association is a document which prescribes the rules and bye-laws for the general management of the company and for the attainment of its object as given in the memorandum .It is a document of paramount significance in the life of a company as it contains the regulations for the internal administration of the company’s affairs.

Multiple choice commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

State the following statement is True or False:
Another name of situation clause is the domicile clauses.

  1. True

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

The second clause of the MOA, the 'situation clause' or ‘domicile’ clause specifies the location of the company’s registered office. The domicile clause will not exactly contain the address of the registered office, but the state or union territory in which the registered office of the company is located. Registered office means a place where the common seal, statutory books etc., of the company are kept.The company should intimate the location of registered office to the registrar within thirty days from the date of incorporation or commencement of business.

Multiple choice commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

Write a word or a term or a phrase which can substitute each of the following statements :
A model set of 99 articles attached to Companies Act, 1956.

  1. Memorandum of Association

  2. Articles of Association

  3. Table A

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

Table A is the name given to the prescribed format for articles of association of a company limited by shares under the Companies Act 1985 and earlier legislation. When a company limited by shares was incorporated, it didn’t need to file articles if it used ‘Table A’ as its articles.  Table A has now been replaced by the new model articles for all companies registered from 1st. October 2009. Existing companies will still be regulated by their existing articles, based on the version of Table A in force when the company was registered or the latest articles adopted. Such companies may find it beneficial to update their articles by adopting new regulations based on  model articles.

Multiple choice commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

Fill in the blank:
Regulation in the Scheduled -1 of the Companies Act, 1956 is the _____.

  1. memorandum of association

  2. articles of association

  3. Table A

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

Regulation in the schedule 1 of the companies act 1956 is the table A. These are the regulations for the management of a company limited by shares. There is full information of the company in the 99 models of table A about the shares, meetings, board of directors, profit, dividend, capitalization, reserve, winding up, indemnity etc.

Multiple choice commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

State-owned enterprises differ from privately funded companies because _______.

  1. public companies can never belong to individual shareholders

  2. public ownership involves workers in the running of the company then in the private sector.

  3. they are funded out by government, funded from taxation.

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

In a private funded companies the shareholders of the company are individuals. They can own the shares individually. But in a public limited company the shares of the company are owned by the government of that state and not individually. Hence, state-owned enterprises differ from privately funded companies because public companies can never belong to individual shareholders.

Multiple choice commercial applications public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public forms of business organisation - 2

Gas authority of India Limited is an example of ______.

  1. limited liability partnership

  2. private limited company

  3. public enterprise

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

Public enterprise  are the enterprise where the share of the government is 51% or more. It works basically for the welfare of the people. Gas authority of India Ltd. is owned by the government and works for the welfare of the people. Hence, it is a public enterprise.