Tag: elements of business

Questions Related to elements of business

Can a company keep more than 21 days notice as the minimum requirements for calling AGM?

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. Yes

  2. No

  3. It has to be legal

  4. Both a & c

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Correct Option: A

For public company is should start business only after getting certificate of _______________.

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. Incorporation

  2. Certificate of Commencement of business

  3. Both

  4. None of these

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Correct Option: C
Explanation:

Certificate of incorporation is a legal document required at the time of company formation. It is said to be a license to form a company, issued by the state government or, in some jurisdictions, by non-governmental entity. A public limited company having share capital, can not start its business unless it obtains the certificate of commencement of business from the Registrar of Companies. So a public company required both the certificates to start it's business.

It is required that Public Ltd. Co. should hold the statutory meeting just after getting certificate of commencement.

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, can hold after 6 months.

  2. Yes

  3. No, can hold within 6 months

  4. No

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Correct Option: C
Explanation:

A statutory meeting is the first meeting of the shareholders of a public limited company which is held only once in the life-time of the company.  All the companies, those are required to hold Statutory Meeting shall hold its Statutory Meeting within a period of not less than 1 month nor more than 6 months from the date at which the company is entitled to commence business.

Private company can allot shares without receiving minimum subscription

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. Yes

  2. No

  3. Unknown

  4. None of the above

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Correct Option: A
Explanation:

A privately held company, private company, or close corporation is a business company owned either by non-governmental organizations or by a relatively small number of shareholders or company members.

A company limited by guarantee means_________________.

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. To the extent of guarantee given

  2. Unpaid Value of shares

  3. Unlimited

  4. None of the above

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Correct Option: A

A company is exempted to add Ltd or Pvt Ltd at the end of their name it is a ______________.

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. Private Company

  2. Govt. Company

  3. Defunct Company

  4. None of the above

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Correct Option: D
Explanation:

The name of the company is the indicator of its legal status. When you're starting a small business, deciding its legal structure is one of the first steps. Legal structure is usually determined by the business type, the number of owners or investors it has, and how tax and liability issues are best managed. You'll likely use an abbreviation, such as Inc., Ltd., Co., or LLC, after your business's name to indicate its structure. 

Company, which is registered under section 8 of the companies act,  2013 (earlier section 25 of the companies act, 1956), can take the exemption of omitting the word ‘limited’ or ‘private limited’ in their name.  
A Company which is listed in any stock exchange doesn’t have to additionally add any words in its name extra.

Minimum no of members to be present for a Public Ltd. company meeting 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. 5

  2. 2

  3. 7

  4. 3

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Correct Option: A
Explanation:

In case of a public company five members should be personally present if the number of members as on the date of meeting is not more than one thousand. 

If the quorum is not present within half-an-hour from the time appointed for holding a meeting of the company, the meeting shall stand adjourned to the same day in the next week at the same time and place, or to such other date and such other time and place as the Board may determine; or the meeting, if called by requisitionists under section 100, shall stand cancelled. 

If at the adjourned meeting also, a quorum is not present within half-an-hour from the time appointed for holding meeting, the members present shall be the quorum.

S Ltd. had 9,000 8% preference tires of Rs 100 each, fully paid up. The company decided to redeem these preference shares at par by the issue of sufficient number of equity shares. How much equity shares are required to be issued if new equity shares are to be issued at Rs 12 for a premium including Rs 2 ______________.

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. 90,000

  2. 1,00,000

  3. 5,000

  4. 93,333

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Correct Option: A

___________ are the official record of the proceedings of a 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. Meeting notes

  2. Agenda

  3. Notices

  4. Minutes

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Correct Option: D

The term Public Ltd. Company is defined in section _________ of the Companies Act, $2013$.

elements of business public sector enterprises meaning and objectives of public sector enterprises introduction to public sector organisations types of companies - private & public

  1. $2(71)$

  2. $3(1)(iv)$

  3. $3(2)$

  4. $4$

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Correct Option: A
Explanation:

As per section 2(71) of the companies Act 2013 a public limited company is a company which is not a private company and has a minimum paid up share capital of Rs-5,00,000. The minimum number of members in a public limited company are seven and maximum are unlimited.