Tag: ownership structures - joint stock company

Questions Related to ownership structures - joint stock company

The company can ___________.

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. Enter into contracts

  2. Borrow money

  3. Open banking account in its name

  4. All of above

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Correct Option: D
Explanation:

Company is a distinct as well as legal entity and would be liable for his own.

Therefore, a company can borrow money, enter into contracts, open bank account in its name, purchase its own shares.

Molasses in sugar industry is an example of ____________.

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. Joint product

  2. Unique product

  3. By product

  4. None of the above

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Correct Option: A

State the following statement is True or False:
Minimum subscription is guaranteed by the directors.

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: B
Explanation:

Minimum subscription is not guaranteed by the directors. Minimum subscription refers to the minimum shares the company needs to get subscribed from the general public.

Presently, every company needs to raise 90% of the issued capital. Else the company shall refund the whole amount received.

State the following statement is True or False:
Shareholders take initiative to form a 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: B
Explanation:

It is not true that shareholders take initiative to form a company. Shareholders are the one who invests in the company and helps in the capital formation of company. Entrepreneur initiates to form a company with the help of Promoters.

State the following statement is True or False:
The certificate required by public limited company to start business activities is the certificate of commencement of business.

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

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".