Tag: joint stock company 1 - definition, classification, advantages and disadvantages

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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

Who has the power to transfer the joint porperty of HUF so as to bind the interest of both adult and minor coparceners?

  1. Son's of the HUF

  2. Duaghters of the HUF

  3. All the co-parceners of HUF

  4. Karta of HUF
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In a Hindu Undivided Family (HUF), the Karta is the manager and head of the family, and he has the authority to manage and transfer family property for the benefit of the family.

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 form of business organisation in which there is separation of ownership  and management is called _______.

  1. sole partnership

  2. partnership

  3. company

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

In a company, ownership is held by shareholders, while the management is handled by the board of directors and professional managers, creating a clear separation.

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

Characteristics of a company.

  1. Transferability of shares

  2. Perpetual existence

  3. Limited liability

  4. All of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Transferability of Shares:
Shares in a company are freely transferable, subject to certain conditions, such that no share-holder is permanently or necessarily wedded to a company. When a member transfers his shares to another person, the transferee steps into the shoes of the transferor and acquires all the rights of the transferor in respect of those shares.
Perpetual Succession:
A company does not cease to exist unless it is specifically wound up or the task for which it was formed has been completed. Membership of a company may keep on changing from time to time but that does not affect life of the company. Insolvency or Death of member does not affect the existence of the company.
Limited Liability:
The liability of the members of the company is limited to contribution to the assets of the company upto the face value of shares held by him. A member is liable to pay only the uncalled money due on shares held by him. If the assets of the firm are not sufficient to pay the liabilities of the firm, the creditors can force the partners to make good the deficit from their personal assets. 
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

Characteristics of a company.

  1. Artificial legal person

  2. Incorporated body

  3. Capital divisible into shares

  4. All of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
Artificial persons such as companies, firms, institutions etc.
Legally, a company has got a personality of its own. Like human beings it can buy, own or sell its property. It can sue others for the enforcement of its rights and likewise be sued by others.
A company comes into existence the day it is incorporated/registered. In other words, a company cannot come into being unless it is incorporated and recognised by law. This feature distinguishes a company from partnership which is also a voluntary association of persons but in whose case registration is optional.
The capital of the company is divided into shares which is owned by the shareholders if the 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

Consider the following statements :
A low inventory turnover may be the result of
1. Obsolescence of some of the stock
2. Slow moving inventory
3. Frequent stock-outs
4. Fast-moving inventory
Which of the above statement(s) is/are correct?

  1. 1 and 2

  2. 4 alone

  3. 2 alone

  4. 2 and 3
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Low inventory turnover implies a situation where the company is holding too much of inventory compared to sales. A low inventory turnover may be the result of
1. Obsolescence of some of the stock
2. Slow moving inventory

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 Secretary's duties under the Companies Act are _________________.

  1. Purely ministerial

  2. Either ministerial or administrative

  3. Managerial

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

A Secretary's duties under the Companies Act are either ministerial or administrative. The company secretary is responsible for the efficient administration of a company, particularly with regard to ensuring compliance with statutory and regulatory requirements and for ensuring that decisions of the board of directors are implemented.

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 the purpose of quorum in a general meeting, joint holders of shares are treated as ________________.

  1. One member

  2. Two members

  3. Equal to the number of joint holders

  4. Disqualified
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation
Option A is correct.
Joint shareholders will be regarded as one member for the purpose of quorum: Any joint shareholder present at the meeting will be entitled to exercise his/her voting power and will be counted for the quorum as one shareholder. These representatives have all the rights of members including right to vote by proxies.




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

In India Companies are governed by ________.

  1. Indian partnership act, $1932$

  2. Companies act, $1956$ as amended from time to time

  3. Societies registration act

  4. all of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
In India companies are governed by the companies act, 1956 amended from time to time. The provisions of the act will apply to:
i) Any body corporate registered under the act.
ii) Insurance company except the ones registered under the insurance act 1938.
iii) Banking company except the ones registered under the Banking company act. 1949.
iv) Company supplying electricity and is not registered in the electricity generation act 1948.
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 term company is defined in section _______ of the Companies Act, $2013$.

  1. $2$

  2. $3(1)(i)$

  3. $3(2)$

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

As per section 2 of the Companies Act, 2013 a company is a company as created under the Companies Act, 2013 or any other previous companies act. 

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, term or a phrase which can substitute each of the following statements:

A report to be submitted to the Registrar according to Section 165.

  1. Annual report

  2. Statutory report

  3. Trade report

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

According to section 165 of the companies act 1965 the company has to file statutory report to registrar.