Tag: ownership structures - joint stock company

Questions Related to ownership structures - joint stock company

The maximum interaction with shareholders is ____________.

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. at the time of allotment

  2. at the time of dividend distribution

  3. both a & b

  4. none of the above

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Correct Option: C

In an annual return of a company which is filed with ROC, the particulars to be mentioned 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. list of directors

  2. registered address of company

  3. list of shareholders

  4. all of the above

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Correct Option: D

The following is the advantage 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. Benefits of large scale production

  2. Bold management

  3. Full legal cover

  4. All of the above

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Correct Option: D

One of the disadvantages of a company form of business is ________.

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. its full legal cover

  2. recognized legal entity

  3. stock exchange speculation

  4. none of the above

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Correct Option: C

Rajeev is a "member" (a type of owner) of a marine supply business with many shareholders. Rajeevs business is __________________.

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. a sole proprietorship.

  2. a limited liability partnership.

  3. a limited liability company.

  4. a general partnership.

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Correct Option: C

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