Tag: meaning and features of government company

Questions Related to meaning and features of government company

The government company cannot enter into contract or acquire property in its own name.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. True

  2. False

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Correct Option: B
Explanation:
A government contractor is a company (privately owned or publicly traded but not a state-owned enterprise) either for-profit or non-profit – that produces goods or services under contract for the government. Ownership is the state or fact of exclusive rights and control over property, which may be an object, land/real estate or intellectual property. 
Ownership is self-propagating in that the owner of any property will also own the economic benefits of that property.

The government company obtains funds from ___________ .

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. government share holdings

  2. private shareholders

  3. capital market

  4. all of the above

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Correct Option: D

An auditor for the government company is appointed by ___________.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. Parliament

  2. Central government

  3. State government

  4. All of the above

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Correct Option: B
Explanation:


In accordance with the provisions of Section 139 of the Companies Act, 2013 (earlier section 619 of the Companies Act, 1956), in the case of a Government company, the Comptroller and Auditor General of India (C&AG of India) shall, in respect of a financial year, appoint an auditor duly qualified to be appointed as an.

Minimum paid up capital to be kept by the government of a government company is ______.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. 35%

  2. 75%

  3. 51%

  4. 50%

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Correct Option: C
Explanation:
A “Government company” is defined under Section 2(45) of the Companies Act, 2013 as “any company in which not less than 51% of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government. A government-owned corporation is a legal entity that undertakes commercial activities on behalf of an owner government.

Government company can file a suit in court of law and can also be used.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. True

  2. False

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Correct Option: A

Government companies are established for business purposes.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. True

  2. False

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Correct Option: A

The government company has a separate legal entity apart from the government.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. True

  2. False

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Correct Option: A
Explanation:

A company is a separate legal entity as distinct from its members. A company is a separate legal entity as distinct from its members, therefore it is separate at law from its shareholders , directors , promoters etc and as such is conferred with rights and is subject to certain duties and obligations.

Government companies provide ___________. 

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. Goods and services at reasonable prices

  2. Control the market

  3. Curb unhealthy business practices

  4. All of the above

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Correct Option: D
Explanation:

Government companies are providing goods and services at reasonable prices. Due to this they are able to control the market and can also curb unhealthy business practices.

The management and administration of the government company rests in the hands of the government.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. True

  2. False

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Correct Option: A
Explanation:

The Ministry of Corporate Affairs (MCA) is an Indian government ministry.This Ministry is primarily concerned with administration of the Companies Act 2013, the Companies Act 1956, the Limited Liability Partnership Act, 2008 & other allied Acts and rules & regulations framed there-under mainly for regulating the.

A government company is not answerable directly to the Parliament.

organisation of commerce and management government organisation meaning and features of government company government companies forms, comparison and cases of public enterprises

  1. True

  2. False

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Correct Option: A
Explanation:

A Government company is free from budgetary, accounting and audit controls, applicable to Government undertakings.

Accountability to the Parliament/State Legislature.
The Annual Report of a Government company is placed before the Parliament or the State Legislature.