Tag: business studies

Questions Related to business studies

As per section 141(4) of the Companies Act, 2013 where person appointed as an auditor of a company incurs any of the disqualifications mentioned in section 141(3) after his appointment, he_________his office has such auditor and such vacation shall be deemed to be a _________in the office.

memorandum of understanding and articles of association company business studies

  1. may vacate; casual vacancy

  2. may vacate;ordinary vacancy

  3. shall vacate;casual vacancy

  4. shall vacate;special vacancy

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Correct Option: C

Under Section 143(2) of the Companies Act, 2013 the auditor shall make a report to the ............. of the company.

memorandum of understanding and articles of association company business studies

  1. managing directors

  2. board of directors

  3. members and board of directors

  4. members

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Correct Option: A

An auditor may function as___________
      (I) An employee
      (II) an independent professional
The correct answer is-

memorandum of understanding and articles of association company business studies

  1. (I) only

  2. (II) only

  3. (I) or (II)

  4. Neither (I) nor (II)

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Correct Option: C

In which one of the following cases has the court applied the doctrine of lifting the veil to determine distinct personality of corporation?

memorandum of understanding and articles of association company business studies

  1. Salomon vs. Salomon

  2. Johnson vs. Kenedy

  3. Moors vs. Burke

  4. Young vs. Hichens

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Correct Option: A

Match the pairs.

List I List II
(i) ictus reus (1) the grounds of decision
(ii) obiter dictum (2) A guilty mind
(iii) ratio decidendi (3) Guilty act
(iv) mens rea  (4) An opinion of law not necessary to the decision
(5) Signifies a right to be heard
memorandum of understanding and articles of association company business studies

  1. (i)-2, (ii)- 5, (iii)- 1, (iv) - 3

  2. (i)-3, (ii)- 1, (iii)- 4, (iv) - 2

  3. (i)-3, (ii)- 4, (iii)- 1, (iv) - 2

  4. (i)-4, (ii)- 5, (iii)- 2, (iv) - 3

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Correct Option: C

Sub rosa means _______

memorandum of understanding and articles of association company business studies

  1. done publically

  2. confidentially

  3. done in secret

  4. (B) or (C)

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Correct Option: D

Which of the following action is recommended for overcoming to resistance to change?

business studies office introduction to office organising functions of management

  1. All the major changes should be introduced at a one time.

  2. Changes should be introduced as surprise so that employees should not get any time for resistance.

  3. Changes should be introduced by stages

  4. All of above

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Correct Option: C

Companies with higher growth potential are likely to ______________.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. pay lower dividends

  2. Pay higher dividends

  3. Dividends are not affected by growth consideration

  4. None of the above

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Correct Option: A
Explanation:

Generally a company with higher growth paternal are likely to pay lower dividends. This is because the companies wants to invest that money in earning higher income and growing at a higher rate which is in the benefit for the long term rather than paying dividend which will only benefit the company for a short term.

A decision to acquire a new and modern plant to upgrade an old one is a______________.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. Financing decision

  2. Working capital decision

  3. Investment decision

  4. Dividend decision

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Correct Option: C
Explanation:
Investment Decision:
Investment decisions includes investment in fixed assets (called as capital budgeting). Investment in current assets are also a part of investment decisions called as working capital decisions.
It includes Decisions relating to the disposal and acquiring and upgrading new assets.

Higher dividends per share is associated with  ______________.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. High Earning, High Cash Flows, Unusable Earnings and Growth Opportunities

  2. High Earning, High Cash Flows, Stable Earnings and Growth Opportunities

  3. High Earning, High Cash Flows, Stable Earnings and Lower Growth Opportunities

  4. High Earning, Low Cash Flows, Stable Earnings and Lower Growth Opportunities

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Correct Option: C
Explanation:

There are two primary causes for increases in a company’s dividend per share payout.

 The first is simply an increase in the company's net profits out of which dividends are paid. 
The second is a shift in the company’s growth strategy that leads the company to decide to expend less of its earnings in seeking growth and expansion, thus leaving a larger share of profits available to be returned to equity investors in the form of dividends.