Tag: elements of business

Questions Related to elements of business

Fill in the blank:
A company which can start its business only after securing the certificate of commencement of business 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. public company

  2. private company

  3. Joint stock company

  4. Co-operative society

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Correct Option: A

Select the term or a phrase which can substitute the following statement:
Name the company which raises it's capital by issuing shares to public.

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. Joint stock company

  2. Private company

  3. Public company

  4. Government organisation

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Correct Option: C

Select the term or a phrase which can substitute the following statement:
Name the type of company which can start it's business after securing 'Trading Certificate'?

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. Public company

  3. Sole proprietorship

  4. Joint stock company

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Correct Option: B
Explanation:

A public company, has to goes through the capital subscription stage and then receives the certificate of commencement. Only after obtaining the trading certificate, a public company can commence its business.

Fill in the blank:
The company which raises its capital by issuing shares to public 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. public company

  2. private company

  3. joint stock company

  4. government organisation

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Correct Option: A
Explanation:

A public company can raise its capital by issuing shares to public. For doing the same, it has to issue a prospectus which is an invitation to the public to subscribe to the capital of the company and undergo various other formalities.

State the following statements is True or False.

Every public company must hold a 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:

Every public company that is a limited company and has a share capital shall, within a period of not less than one month and not more than three months after the date at which it is entitled to commence business, hold a general meeting of the members of the company to be called the "statutory meeting".

The statutory meeting is compulsory for a public 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. True

  2. False

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Correct Option: A
Explanation:

Every public company that is a limited company and has a share capital shall, within a period of not less than one month and not more than three months after the date at which it is entitled to commence business, hold a general meeting of the members of the company to be called the "statutory meeting"

Select the correct option given below:

The quorum for general meeting of a public 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. 5

  3. 8

  4. 10

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Correct Option: B
State the following statement is True or False:
Before the statutory meeting the secretary has to draft the statutory report.
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

State the following statements is True or False:

The first general meeting of a public company is 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

Select the option from the option choices given in below and re-write the completed sentences:
A public company may adopt _____ in place of Articles of Association.

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. Table A

  2. Memorandum of Association

  3. Prospectus

  4. None of these

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Correct Option: A
Explanation:
The Articles of Association are drawn for internal administration of the Company. The articles of the company, besides containing the regulations of the company shall also include such additional matters as may be necessary for its management.

Under Companies Act, 1956, it was not mandatory for a public company limited by shares to have its Articles, as it could adopt the entire Table A of its articles; however under Companies Act, 2013, it is mandatory for every company to have its own articles.