Tag: types of companies - private & public

Questions Related to 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 getting 'Certificate of Incorporation'?

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. Public company

  2. Private company

  3. Co-operative society

  4. Joint stock company

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Correct Option: B
Explanation:

After receiving certificate of incorporation, a private company can start its business. Incorporation of a Joint stock company is compulsory. Without incorporation, all the contracts would be considered void in the eyes of law and operations of business cannot be carried out.

State the following statement is True or False:

The private company need not hold the statutory 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. True

  2. False

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Correct Option: A
Explanation:

A private limited company and a company limited by guarantee not having share capital need not hold a statutory meeting. Statutory meeting must be held within a period of not less than one month and not more than six months after the date on which it is authorized to commence its business.

Select the correct option given below:

The quorum for general meeting of a private company according to the Companies Act, 1956 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. 2

  2. 3

  3. 7

  4. 10

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Correct Option: A

Write a word, term or a phrase which can substitute each of the following statements:
____________ quorum required for extra-ordinary general meeting of private company.

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. Two members

  2. Three members

  3. Five Members

  4. Ten members

Show answer
Correct Option: A
Explanation:
Section 103 of the Companies Act, 2013 specifies the criteria for Quorum of a meeting.
In case of a Public company,—
If No. of members as on the date of meeting, Quorum is:
  1. Not more than 1,000: 5 members personally present
  2. More than 1,000 but up to 5,000: 15 members personally present
  3. Exceeds 5,000: 30 members personally present

In the case of a Private company, —
 Quorum - 2 members personally present at the meeting.

Fill in the Blanks:

A private company must have at least _________ Directors.

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. one

  2. two

  3. three

  4. four

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Correct Option: B

Select out the feature which is NOT found in a private limited company?

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. Raising capital for the business is easier.

  2. Shares can be bought and sold on the Stock Exchange.

  3. Subscribers of the business have limited liability

  4. The business continues after the death of shareholders

Show answer
Correct Option: B
Explanation:

Private limited company is a type of company that offers limited liability, or legal protection to its share holders. It has the following features:

  1. Raising capital for the business is easier.
  2. Subscribers of the business have limited liability.
  3. The business continues after the death of shareholders.

Which of the following statements suits best to private limited company?

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. It is owned by the government

  2. It is owned by shareholders who can sell their shares in the stock exchange

  3. It is formed for the benefit of society at large

  4. Its accounts can be kept private and it receives little coverage in the business

Show answer
Correct Option: D
Explanation:

Private limited companies is a type of company which has limited liability and offers legal protection to its share holders. The accounts of this company are kept private between the members themselves and also it receives little coverage in the business.

A Company which is employing _______ number of employees are required to have a PPF account.

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. 30

  2. 25

  3. 20

  4. 35

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Correct Option: C

Which of the following statement is true?

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. Both private and public companies need one director

  2. Private companies need two directors but public companies need 3

  3. Private companies need one director but public companies need two

  4. Both private and public companies need two directors

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Correct Option: B
Explanation:

Minimum number of three directors is required in case of public company while two are required in case of public company and one director in case of One person company.

What is the disadvantage of a public corporation?

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. No legal entity

  2. Excessive accountability

  3. Lack of availability of managerial talent

  4. No financial autonomy

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Correct Option: B