Tag: ownership structures - joint stock company

Questions Related to ownership structures - joint stock 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

Show answer
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 ________.

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. 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. 

Write a word, term or a phrase which can substitute each of the following statements:

A report to be submitted to the Registrar according to Section 165.

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. Annual report

  2. Statutory report

  3. Trade report

  4. None of these

Show answer
Correct Option: B
Explanation:

According to section 165 of the companies act 1965 the company has to file statutory report to registrar.

Select the correct option given below :

The management of a joint stock company is vested in the ____________.

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. Director

  2. Board of directors

  3. Manager

  4. All of above

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Correct Option: B

Food co-operation of India 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 joint stock company

  2. Company managed by department

  3. Company established by special act of parliament or state assembly

  4. None of the above

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Correct Option: A

Which of the following is/are disadvantage of a company form of organisation?

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. The formation of a joint stock company is much more complicated than sole proprietorship or partnership.

  2. A joint stock company has greater tax burden.

  3. Separation of ownership from control

  4. All of above

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Correct Option: D

_____________ are formed by small farmers to work jointly and thereby enjoy the benefits of large scale farming.

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. Co-operative farming societies

  2. Co-operative marketing societies

  3. Co-operative credit societies

  4. Consumers' co-operative societies

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Correct Option: A