Forms of business organisation - 2 - class-IX
The term Public Ltd. Company is defined in section _________ of the Companies Act, $2013$.
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$2(71)$
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$3(1)(iv)$
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$3(2)$
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$4$
As per section 2(71) of the companies Act 2013 a public limited company is a company which is not a private company and has a minimum paid up share capital of Rs-5,00,000. The minimum number of members in a public limited company are seven and maximum are unlimited.
PSE's are organisations owned by _____________.
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Joint Hindu Family
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Government
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Foreign Companies
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Private Entrepreneurs
Public sector enterprise ( PSE ) is the enterprise owned by the union government of India or one of the many state or territorial governments or both. These are the enterprises where the holding power of the government is 51% or more. Hence, PSE's are organisations owned by the central government.
Centralised control in MNC's implies control exercised by _____________.
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Branches
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Subsidiaries
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Headquarters
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Parliament
Multinational corporation ( MNC ) is an organisation who have branches in many different countries but managed wholly from one country i.e. home country. Hence, centralised control in MNC's implies control exercised by the headquarters.
Which of the following is the most important motive of private firms?
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Sales motive
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Maximising output
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Profit motive
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All the above
The most important motive of private firms is to maximize their profit. The private firms want to increase the level of their profits which helps in the growth of the company.
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two
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three
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five
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six
The public company has to take approval of SEBI, if public offers for shares exceeds 3 crores according to the companies act.
A public company need to have minimum ___________ members.
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two
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five
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seven
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ten
Under the Companies Act 2013, minimum 7 members are required to start a public company.
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True
-
False
The Companies Act 1956 is administered by the Government of India through the Ministry of Corporate Affairs and the Offices of Registrar of Companies, Official Liquidators, Public Trustee, Company Law Board, Director of Inspection, etc. The Act is 658 sections long. The Act contains provisions about Companies, directors of the companies, memorandum and articles of associations, etc. This act states and discusses every single provision requires or may need to govern a company. However, some of the provisions are now amended as per the Companies Act, 2013.
State the following statement is True of False:
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True
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False
This statements is False because of the following reasons:
Write a word or a term or a phrase which can substitute each of the following statements :
A model set of 99 articles attached to Companies Act, 1956.
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Memorandum of Association
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Articles of Association
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Table A
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Prospectus
Table A is the name given to the prescribed format for articles of association of a company limited by shares under the Companies Act 1985 and earlier legislation. When a company limited by shares was incorporated, it didn’t need to file articles if it used ‘Table A’ as its articles. Table A has now been replaced by the new model articles for all companies registered from 1st. October 2009. Existing companies will still be regulated by their existing articles, based on the version of Table A in force when the company was registered or the latest articles adopted. Such companies may find it beneficial to update their articles by adopting new regulations based on model articles.
Fill in the blank:
Regulation in the Scheduled -1 of the Companies Act, 1956 is the _____.
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memorandum of association
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articles of association
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Table A
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None of these
Regulation in the schedule 1 of the companies act 1956 is the table A. These are the regulations for the management of a company limited by shares. There is full information of the company in the 99 models of table A about the shares, meetings, board of directors, profit, dividend, capitalization, reserve, winding up, indemnity etc.
State-owned enterprises differ from privately funded companies because _______.
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public companies can never belong to individual shareholders
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public ownership involves workers in the running of the company then in the private sector.
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they are funded out by government, funded from taxation.
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none of the above
In a private funded companies the shareholders of the company are individuals. They can own the shares individually. But in a public limited company the shares of the company are owned by the government of that state and not individually. Hence, state-owned enterprises differ from privately funded companies because public companies can never belong to individual shareholders.
Gas authority of India Limited is an example of ______.
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limited liability partnership
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private limited company
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public enterprise
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none of the above
Public enterprise are the enterprise where the share of the government is 51% or more. It works basically for the welfare of the people. Gas authority of India Ltd. is owned by the government and works for the welfare of the people. Hence, it is a public enterprise.
The movement of growth of an enterprise leads towards _______.
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flexibility
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creation of autonomy
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informality
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all the above
The enterprise will grow successively if it changes according to the required atmosphere. It should be flexible. The key to the success of the firms lies in the ability of the founders to recognize the need for change, understand how to effect the change, and quickly make the change at important inflection points. Creation of autonomy is the characteristic that ultimately drives entrepreneurs to accept the risks of entrepreneurship: a heavy workload and an uncertain financial future. The strength of informal enterprises lies within their flexibility, lack of defined structures, and ability to quickly respond to individuals’ needs and market conditions.
As the enterprises grows its success depends on _________.
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adaptiveness
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innovativeness
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both (a) and (b)
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neither (a) or (b)
The success of the growth of an enterprise depends on its capability to adopt the changes going on and to do new innovations. Knowledge sharing and knowledge management should be given priority to encourage innovation and creativity.
Public enterprise is an autonomous or semiautonomous organisation.
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True
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False
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Partly true
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Partly false
Public enterprises are autonomous organisations. They frame their own policies and procedures within the powers assigned to them by the act. The Act may however provide few issues which require prior approval of a particular ministry which makes it semiautonomous organisations also.
The public enterprises are agents for implementing Government Plans.
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True
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False
Public enterprises is an industrial, commercial or business activity of a government where a return on investment is expected. These are institution operating service of an economic or social character or behalf of government. Government lays down certain public policies in the public interest and not guided by profit motive in order to govern such companies.
The key elements of public enterprises are ______________.
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recruitment & state control
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recruitment & useful to various sectors
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public accountability & state control
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recruitment & public accountability
Public enterprises are autonomous or semi-autonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial activities. The key elements of public enterprises are state control and Public accountability. These are managed by the government. In some cases government has started enterprises under its own departments. In other cases, government nominates persons to manage the undertakings. Even autonomous bodies are directly and indirectly controlled by the government departments. The primary aim of state enterprises is to provide service to the society. These enterprises are started with a service motive. A private entrepreneur will start a concern only if possibilities of earning profits exist but this is not the purpose of public enterprises.
XYZ company prohibits the acceptance of deposits from persons except directors, members or relatives is an ___________.
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public limited company
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private Ltd. co.
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government co.
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none of the above
A company whose securities are traded on a stock exchange and can be bought and sold by anyone. Public companies are strictly regulated, and are required by law to publish their complete and true financial position so that investors can determine the true worth of its stock (shares). Also called publicly held company.
A public limited company may in the general meeting, resolve to capitalize any part of the amount standing to the credit of any of its reserve accounts, up to the recommendation of the ___________.
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managing director
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board of directors.
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financial advisors
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shareholders
A board of directors is a recognized group of people who jointly oversee the activities of an organization, which can be either a for-profit business, nonprofit organization, or a government agency.
__________ includes the rules and regulations on which the company's internal affairs are to be done.
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Articles of association
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Memorandum of association
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Prospectus
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All of the above
The Articles of Association (AoA) or the Articles, contain rules for the internal management of a company. It is a legal document prepared by a company to explicitly state the purpose of a company, the procedure to conduct its internal affairs and most importantly the responsibility and authority of the directors, members and other stakeholder. The Articles have to be submitted to the Registrar of Companies during formation of a company in Form INC-34 along with the Memorandum of Association in Form INC-33.
The term company is defined under which sec of the Act?
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Sec 3(1)
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Sec 4 (2)
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Sec 5 (4)
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Sec 1(3)
As per the section 3(1) of the companies act:
The acronym STEEP means ____________.
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Social, Technological, Economical, Environmental, and Political
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Suppliers, Technology conditions, Ecology and physical environment, Political and legal
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Employees & Political legal
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None of these
STEEP is basically an acronym which stands for Social, Technological, Economical, Environmental, and Political. A STEEP analysis is a tool commonly used in marketing to evaluate different external factors which impact an organization. It is essential for every business to consider some external forces before they can take decisions.
When there is a conversion of a private company into a public company____ must be issued.
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deemed prospectus
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shelf prospectus
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statement in lieu of prospectus
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none of the above
When a private company is converting into a public company it has to file with concerned ROC the Statement in Lieu of Prospectus. A statement in lieu of prospectus is defined as ‘a public document prepared in the second schedule of companies ordinance by every such public company which does not issue a prospectus on its formation by filing with the registrar before allotment or shares of debentures, and signed by every person who is named therein’. A statement in lieu of prospectus gives practically the same information as a prospectus and is signed by all the directors or proposed directors. In case the company has not filed a statement in lieu of prospectus with the registrar, it is then not allowed to allot any of its shares or debentures.
Can a public ltd. company hold an AGM on a public holiday?
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Yes
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No
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Both a and b
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None of the above
Annual General Meeting of a public company cannot be held on a public holiday. Section 166(2) inter alia states that every annual general meeting shall be called on a day, which is not a public holiday. It has been clarified by the Department (MCA) vide Circular F. No. 8/23/(166 /69-CL-V that section 166 of the Companies Act deals with the actual period during which the annual general meeting is to be held. Sub-section (2) states that every annual general meeting shall be held on a day that is not a public holiday and this provision is mandatory.
Reliance Industries Ltd. was founded by _________.
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Anil Ambani
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Mukesh Ambani
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Akash Ambani
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Dhirubhai Ambani
Reliance Industries Limited is an Indian conglomerate holding company headquartered in Mumbai, Maharashtra, India. Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.
Who is the Chairman of Bharti Airtel?
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Deepak Mittal
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Navin Mittal
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Sunil Mittal
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Anil Mittal
Sunil Bharti Mittal is an Indian Billionaire entrepreneur, philanthropist and the Founder & Chairman of Bharti Enterprises, which has diversified interests in telecom, insurance, real estate, education, malls, hospitality, agri and food besides other venture.
The areas like health and hygiene, public interest, philanthropic activities comes under _____________.
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Corporate Social Responsibility
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Critical Success Factors
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Common Social Responsibility
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Common Success Review
Corporate social responsibility is a commitment to do more than just serve the needs and expectations of customers and shareholders. It can also mean going beyond business basics and serving a social need.
360 degree feedback is also known as __________.
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multi-rater feedback
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multi-source feedback
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all-rounder feedback
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both (a) and (b)
360 Degree Feedback is a system or process in which employees receive confidential, anonymous feedback from the people who work around them. This typically includes the employee's manager, peers, and direct reports.
Which of the following form of organization is/are used for the public sector enterprises in India?
(i) Departmental undertaking
(ii) Statutory corporation
(iii) Government company
Select the correct answer from the options given.
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(i) only
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(ii) only
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(i) and (ii) only
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(i), (ii) and (iii)
- A departmental undertaking is self- contained but it is under the overall control of the departmental head and the ministry concerned. It is a very old and traditional form of public enterprise. It may be organized as a separate full-fledged ministry.
- Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments. ... It is a corporate person and has the capacity of acting in its own name.
-
Government Company is a company or an organization in which at least 51% of the paid up share capital is held by the central government or the state government or partly by both central and state government.
The primary objective of public sector enterprises is to ________.
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Serve the public
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Maximize profit
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Act as a catalyst for community development
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Provide agricultural products
An important objective of public enterprises is to prevent the concentration of economic power and growth of private monopolies. Public sector helps the government to enforce social control on trade and industry for ensuring equitable distribution of goods and services, Public sector organisations are businesses set up with the aim of providing a public service rather than making a profit. Social enterprises are private organisations that are run along business lines, but where any profits are reinvested into the community or into social or environmental projects.
The chief characteristic(s) of public enterprises is/are.
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In some specific cases the public enterprises enjoy monopoly in operation like Railways, Post and Telegraph and Energy production.
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The state enterprises are liable to the general public for their performances.
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The public enterprises run as per the whims of the government and as such the economic policies and plans of the government are implemented through public enterprises.
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All of the above
The chief characteristics of public enterprises are:
The organization form of public sector enterprise does not include______________.
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Departmental Undertaking
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Statutory Corporation
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Government Company
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Subsidiary to Public Company
Subsidiaries remain private. They are private subsidiaries of a public company. Think about it: if a subsidiary went public, that would mean that its shares were being offered to the public, instead of all being owned by the parent company, and so it would no longer be a subsidiary.
The chief characteristic(s) of public enterprises is/are __.
$(1)$ Autonomous or semi-autonomous organization
$(2)$ Financed, owned & managed by the government
$(3)$ Primary objective of the establishment of public enterprises is to serve the public at lot of profit.
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$(3)$ & $(2)$
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$(2)$ & $(1)$
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$(1), (2)$ & $(3)$
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$(1)$ & $(2)$
Public enterprises are autonomous and semi autonomous corporations and companies established, owned and controlled by the state and engaged in industrial and commercial activities.
Which of the following is public enterprise?
$1$. Hindustan Machine Tools (HMT)
$2$. Gas Authority of India (GAIL)
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$2$ only
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$1$ only
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Both $2$ & $1$
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Neither $1$ nor $2$
The government owned enterprises is called a public enterprise. It refers to any industrial or commercial undertaking which is owned and managed by central, state or local government and of which is the output is marketed. The examples are Hindustan Machine Tools (HMT), Gas Authority of India (GAIL).
In July $1997$, which of the following has not been identified as a 'navaratna' public sector enterprise?
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SAIL
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BHEL
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UTI
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ONGC
UTI Mutual Fund was carved out of the erstwhile Unit Trust of India as a SEBI registered mutual fund from 1 February 2003.
Which of the following is/are included in public sector enterprises as 'Navaratnas'?
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HPCL
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IOC
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MTNL
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All of the above
A state-owned enterprise in India is called a public sector undertaking (PSU) or a public sector enterprise.
The role of public sector was redefined. In July _________, Government identified nine central public sector enterprises as 'Navaratnas'.
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$2007$
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$1997$
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$1967$
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$1957$
The Maharatna firms can now decide on investments of up to 15 per cent of their net worth in a project; the Navaratna companies could invest up to Rs 1,000 crore without explicit government approval.
Which of the following cannot be termed as "Public Sector Enterprise"?
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Various departments in Government Company registered under the Companies Act, 2013
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Government Company registered under the Companies Act, 2013 in which all the shares are held by President of India and only one share is held by nominee of president.
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Statutory corporations owned and controlled by Central or State Government.
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All of the above
A state-owned enterprise in India is called a public sector undertaking (PSU) or a public sector enterprise. These companies are owned by the union government of India, or one of the many state or territorial governments, or both. The company stock needs to be majority-owned by the government to be a PSU.
Feature(s) of a public corporation is/ are ________________________.
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It is generally not exempt from the rigid rules applicable to the expenditure of public funds
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A public Corporation is managed by board of directors who are appointed by the public financial institutions
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The primary motive of the corporation is public service rather than private profits
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All of above
Public sector refers to government-owned organizations and government provided services. Private sector refers to organizations that are not government owned and the goods and services provided by organizations outside of the government. For example, companies owned by individuals are part of the private sector.
Which of the following is example of a public corporation?
I. Life Insurance Corporation of India (LIC)
II. Employees State Insurance Corporation (ESIC)
III. Industrial Development Bank of India (IDBI)
Select the correct answer from the options given below.
-
$I - \checkmark, II - x, III - \checkmark$
-
$I - x, II - \checkmark, III - x$
-
$I - \checkmark, II - \checkmark, III - x$
-
$I - \checkmark, II - \checkmark, III - \checkmark$
A company whose shares are publicly traded and are usually held by a large number (hundreds or thousands) of shareholders. The usual British term is a public limited company. A government-owned company such as an airline or public transit company. See also corporation sole.
Oil and Natural Gas Corporation, Indian Oil Corporation, Steel Authority of India, and Bharat Heavy Electrical are all examples of ______________.
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small Scale Units
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Private Sector Units
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Public Sector Units
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Sick Units
A state-owned enterprise in India is called a public sector undertaking (PSU) or a public sector enterprise. These companies are owned by the union government of India, or one of the many state or territorial governments, or both. The company stock needs to be majority-owned by the government to be a PSU.
Which of the following is example of a public corporation?
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Life Insurance Corporation of India
-
Employees State Insurance Corporation
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Industrial Development Bank of India
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All of above
company whose shares are publicly traded and are usually held by a large number (hundreds or thousands) of shareholders. The usual British term is a public limited company. A government owned company such as an airline or publictransit company. See also corporation sole.
BRPSE has made recommendations in respect of __________ central public sector enterprises so far and out of them the Government has approved revival plant of _______ cases till $30$th March $2006$.
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$15, 31$
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$5, 21$
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$31, 15$
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$21, 5$
BRPSE has made recommendations in respect of 31 central public sector enterprises so far and out of them the Government has approved revival plant of 15 cases till 30th March, 2006. Board for Reconstruction of Public Sector Enterprises was established in December 2004 as an advisory body to advise the government on the strategies, measures and schemes related to strengthening, modernizing, reviving and restructuring of public sector enterprises.
_________ is a corporation enterprise that manages production or delivers services in more than one country.
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A multinational Corporation
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Multinational Enterprise
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(a) or (b)
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Neither (a) nor (b)
A multinational corporation or multinational enterprise is a corporation enterprise that manages production or delivers services in more than one country. It can have unlimited scope for raising finance. Shares of multinational enterprise are freely transferable. It has facilities and other assets in more than one country.
Which of the following statement is NOT true?
-
The power to make calls can only be exercised at the Board Meeting
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The company can have both managing directors and manager
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The directors cannot be removed by the State Government
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None of the above
The company can have both managing directors and manager- this statement is not true. Managing director and manager of the company is referred to the same person. Managing director is a person who is responsible for the daily operations in the company.
Ford, Toyota, Honda and Volkswagen, oil companies like Shell, BP and Exxon Mobil Technology companies like Dell, Microsoft, Hewlett Packard and Canon and food and drink companies such as Coca Cola and Mc Donalds can be classified as ______________.
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statutory corporation
-
mutlinational corporation
-
public sector corporation
-
none of above
Ford, Toyota, Honda and Volkswagen, oil companies like Shell, BP and Exxon Mobil Technology companies like Dell, Microsoft, Hewlett Packard and Canon and food and drink companies such as Coca Cola and Mc Donalds can be classified as multinational corporation. A multinational corporation or multinational enterprise is a corporation enterprise that manages production or delivers services in more than one country. It can have unlimited scope for raising finance. Shares of multinational enterprise are freely transferable. It has facilities and other assets in more than one country.
A board meeting can be held anywhere ___________.
-
True
-
False
-
Partly True
-
Partly False
A board meeting can be held anywhere- this is a true statement. A board meeting can be described as a meeting of the board of directors of a company at which the policy of the company and major decisions as to its future actions are discussed. The powers of the board meeting is set out in company's articles of associations.
Which of the following statement is NOT correct with respect to a Board Meeting?
-
No time limit for serving the notice is prescribed by the Act.
-
The Board meeting should be held only at registered office of the company
-
The Board meeting can also be held on a public holiday
-
The BM can be held even after the normal business hours
The Board meeting should be held only at registered office of the company- this statement is not correct with respect to a Board meeting. The board meeting can be held at any place.. Board meeting is generally held by the directors of the company.
Shares of _________ company are freely transferable.
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Private Company
-
Public Company
-
Both (a) & (b)
-
None of the above
Private company'is a company, which restricts the right to transfer its shares. In the case of a public company, the Act provides that the shares or debentures and any interest of the company are freely transferable.
Which of the following statements is not true in respect of holding the Annual General Meeting?
-
AGM should be held in every calender year
-
AGM should be held within six months from the end of financial year
-
The gap between two AGM's should not exceed fifteen months
-
Private company is not required to hold an AGM
Private company is not required to hold an AGM- this statement is not true in respect of holding the Annual General Meeting. Every private company must hold an Annual General Meeting. It is conducted by the Board of Directors in order to discuss about the plan and policies which are to be taken to run the company.
How many members should sign the MOA in case of public company___________.
-
1
-
5
-
3
-
7
Memorandum of Association helps the shareholders, creditors and any other person dealing with the company to know the basic rights and powers of the company MoA must be signed by at least 2 subscribers in case of a private limited company, and 7 members in case of a public limited company.
Which of the following company prohibits any invitation to the public to subscribe for share or debentures?
-
Private Company
-
Public Company
-
Government Company
-
Both (b) and (c)
A privately held company, private company, or close corporation is a business company owned either by non-governmental organizations or by a relatively small number of shareholders or company members.Some of the most famous companies in the world are private companies, including Facebook, Ikea, agriculture giant Cargill, and candy maker Mars. Though private companies come in all sizes, a vast majority of private companies are small businesses. If the company is publicly listed, its shares will be listed on the stock exchange and different rules apply to the sale and purchase of the shares. If the company is a private company, the rules about buying and selling shares are set out in the company's constitution and in the COMPANIES ACT 1993.
Administrative corruption includes "gift" to the _______.
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Factory inspector
-
Boiler inspector
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Pollution control board inspectors
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All of above
Administrative corruption is the abuse of roles, powers, or resources found within public bureaucracies. It may be initiated by line or staff officials, their superiors, or the agency clients.
Which company has a minimum paid-up capital of five lakh rupees or higher?
-
Government Company
-
Private Company
-
Public Company
-
Both (a) and (c)
Job analysis provides information used for writing _________________.
-
Organisation chart
-
Policy
-
Job Description
-
Procedure
Feature(s) of a public corporation is/ are ________________________.
-
The primary motive of the corporation is to earn private profits
-
It cannot sue and cannot be sued and cannot enter into contracts in its own name
-
Both (A) and (B)
-
Neither (A) nor (B)
A public company, publicly traded company, publicly held company, publicly listed company, or public limited company is a corporation whose ownership is dispersed among the general public in many shares of stock which are freely traded on a stock exchange or in over the counter markets.
A company is known as the holding company of another company if it has control over the other company.
-
True
-
False
A holding company is a company that owns other companies' outstanding stock. A holding company usually does not produce goods or services itself; rather, its purpose is to own shares of other companies to form a corporate group.
Rights issue refer to the shares issued to ____________.
-
Employees
-
Public
-
Exsiting directors
-
None of these