Tag: elements of business

Questions Related to elements of business

The capital of a company is divided into number of parts, each one of which is called ________.

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  1. dividend

  2. profit

  3. interest

  4. share

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Correct Option: D

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

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

  1. Son's of the HUF

  2. Duaghters of the HUF

  3. All the co-parceners of HUF

  4. Karta of HUF

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Correct Option: D

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

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

  1. sole partnership

  2. partnership

  3. company

  4. all these

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Correct Option: C

Characteristics of a company.

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

  1. Transferability of shares

  2. Perpetual existence

  3. Limited liability

  4. All of above

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Correct Option: D
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. 

Characteristics of a company.

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

  1. Artificial legal person

  2. Incorporated body

  3. Capital divisible into shares

  4. All of above

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Correct Option: D
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.

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?

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

  1. 1 and 2

  2. 4 alone

  3. 2 alone

  4. 2 and 3

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Correct Option: A
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

A Secretary's duties under the Companies Act are _________________.

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

  1. Purely ministerial

  2. Either ministerial or administrative

  3. Managerial

  4. Supervisory

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Correct Option: B
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.

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

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

  1. One member

  2. Two members

  3. Equal to the number of joint holders

  4. Disqualified

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Correct Option: A
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.




In India Companies are governed by ________.

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  1. Indian partnership act, $1932$

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

  3. Societies registration act

  4. all of the above

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Correct Option: B
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.

The term company is defined in section _______ of the Companies Act, $2013$.

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

  1. $2$

  2. $3(1)(i)$

  3. $3(2)$

  4. $4$

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Correct Option: A
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.