Tag: organisation of commerce and management

Questions Related to organisation of commerce and management

The committee which is, set up to advise the Central Government and Company Law Board on the administration of the companies Act is the Advisory Committee.

organisation of commerce and management sectoral organisation of business classification of commercial organisations public, private and joint sector private and public sector departmental undertakings meaning and features of departmental undertaking

  1. True

  2. False

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Correct Option: A
Explanation:

For the purpose of advising the Central Government and the Company Law Board on such matters arising out of the administration of this Act as may be referred to it by that Government or Board, the Central Government, may constitute an 'Advisory Committee' consisting of not more than five persons with suitable qualifications.

State with reasons whether the following statements are True or False:
A public company need not issue prospectus for raising capital. 

organisation of commerce and management sectoral organisation of business classification of commercial organisations public, private and joint sector private and public sector departmental undertakings meaning and features of departmental undertaking

  1. True

  2. False

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Correct Option: B
Explanation:
(i) A prospectus usually is in the form of a statement giving all material information about the company and showing its future prospects. 
(ii) It aims at inviting investors to subscribe for its shares and debentures. 
(iii) It is a must for every public company to prepare its prospectus. 
(iv) It is through the prospectus that the prospective investors know details of the shares offered by the company. 
(v) Otherwise, the investors would have no idea of the shares that a public company is selling
(vi) All detailed information about a company like its business, management, financial structure etc. are provided in the prospectus. 
(vii) The main idea to issue a prospectus is to collect capital for the company from the general public. 
(viii) Although the main aim of the prospectus is to invite or attract investors towards the company still no mis-statement or false claim shall be made in it to deceive the investors. 
(ix) It should contain true, fair and correct information. 
(x) Hence, it is very necessary fora public company to issue a prospectus, as it has to collect its capital from the general public. 

Fast growth in the private sector was after the policy reforms announced in _____________.

organisation of commerce and management sectoral organisation of business classification of commercial organisations public, private and joint sector private and public sector departmental undertakings meaning and features of departmental undertaking

  1. $1992$

  2. $1991$

  3. $1998$

  4. $2001$

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Correct Option: B
Explanation:

According to the policy of 1991 the role of public sector was limited only to four industries; rest all the industries were opened for private sector also. Privatization refers to giving greater role to private sector and reducing the role of public sector. 

To execute policy of privatization government took the following steps:(a) Disinvestment of public sector, i.e., transfer of public sector enterprise to private sector (b) Setting up of Board of Industrial and Financial Reconstruction (BIFR). 

This board was set up to revive sick units in public sector enterprises suffering loss. (c) Dilution of Stake of the Government. If in the process of disinvestment private sector acquires more than 51% shares then it results in transfer of ownership and management to the private sector.

All the appointed directors are required to submit their consent letter to Registrar. It is true for ______________.

organisation of commerce and management sectoral organisation of business classification of commercial organisations public, private and joint sector private and public sector departmental undertakings meaning and features of departmental undertaking

  1. private ltd. co.

  2. public ltd. co.

  3. all the companies

  4. not relevant

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Correct Option: C
Explanation:

In accordance with the section 152(5) of the companies act 2013, a person appointed as a director of any company shall not act as a director unless he gives his consent to hold the office as director and such consent has been filed with the Registrar within 30 days of his appointment.

Below mentioned are the features of a public enterprise except __________.

organisation of commerce and management sectoral organisation of business classification of commercial organisations public, private and joint sector private and public sector departmental undertakings meaning and features of departmental undertaking

  1. its primary objective is to serve Government departments

  2. they are not accountable to public

  3. in some specific areas, they have monopoly.

  4. both a. and b,

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Correct Option: D
Explanation:

Characteristics of public sector entities are- 
  • Public accountability.
  • Multiple objectives.
  • Rights, powers and responsibilities 
  • Lack of equity ownership.
  • Operating and financial frameworks set by legislation.
  • The importance of the budget.
  • Governance structures.
  • Nature of resources

Board meeting can be held on _________.

organisation of commerce and management sectoral organisation of business classification of commercial organisations public, private and joint sector private and public sector departmental undertakings meaning and features of departmental undertaking

  1. public holiday

  2. outside registered office

  3. convenient time

  4. all of the above

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Correct Option: D
Explanation:

Board meetings are normally held during business hours and on a day, which is not a public holiday. However, a Board meeting may validly be held on public holiday. Department has clarified vide Letter No. 8/11(285)/63-PR, dated 2-5- 1963 that it would not raise any objection if an original Board meeting is not held on a working day for the convenience of the directors although it states that an original Board Meeting should be held on a working day.  Board meetings can be held during non-business hours also. There is no restriction that only business hours have to be used. A company’s registered office or head office or any other campus can be used to have the meeting, irrespective of the fact whether or not it is within the same city, town, village or state which houses the registered office. Meetings can also take place in another country. Participation of the directors by video conferencing or by other audio visual means shall also be valid.

The objective of the World Bank is _____________.

world bank institutes supporting business facilitators of international business organisation of commerce and management commerce nabard and kvic funding and assistance to small businesses

  1. to remove the short term disequilibrium is the balance of payments of the member countries

  2. to eliminate the long term disequilibrium in the balance of payments of the member of countries

  3. to eliminate the medium term disequilibrium in the balance of payments of the member of countries

  4. all the above

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Correct Option: B

The acronym for general agreement for tariffs and trade is _________.

world bank institutes supporting business facilitators of international business organisation of commerce and management commerce nabard and kvic funding and assistance to small businesses

  1. WTO

  2. IMF

  3. GATT

  4. ITO

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Correct Option: C
Explanation:

The acronym for General Agreement for Tariffs and Trade is GATT. The main aim of GATT is to promote international trade by eliminating trade barriers.

Which of the following are international trade institutions?

world bank institutes supporting business facilitators of international business organisation of commerce and management commerce nabard and kvic funding and assistance to small businesses

  1. IMF

  2. IBRD

  3. ITO

  4. All of the above

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Correct Option: D
Explanation:

International trade institutions are established for various aspects and regulations in the international trade, some of these institutions are International Monetary Fund (IMF), International Bank for Reconstruction and Development (IBRD), International Trade Organization (ITO). 

The World Bank is significantly involved in eradication of poverty through raising productivity.

world bank institutes supporting business facilitators of international business organisation of commerce and management commerce nabard and kvic funding and assistance to small businesses

  1. True

  2. False

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Correct Option: A
Explanation:

The world bank is significantly involved in eradication of poverty through raising productivity in the underdeveloped nations by helping them in industrial and agricultural economies and creating employment opportunities for the poor.