Tag: promotion and formation of a company

Questions Related to promotion and formation of a company

 Experts who help promoters in the promotion of a company are also called promoters.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. True

  2. False

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Correct Option: B
Explanation:

Expert do not become promoter, because they are assisting the promoters in various works or studies for which they charge fees. Hence experts who assists promoters in promotion of the company will not be called as promoters.

Minimum number of members to form a public company is ________.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. 5

  2. 7

  3. 12

  4. 21

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Correct Option: B
Explanation:

Public company is the company who has a minimum paid up share capital of Rs. 5 Lac. Hence, as prescribed by the Companies Act the minimum members to form a public company is 7.

Minimum number of members to form a private company is  _______.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. 2

  2. 3

  3. 5

  4. 7

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Correct Option: A
Explanation:

The minimum number of members needed to form a private company is at least 2 members. The minimum number of members needed to form a Public Company is at least 7 members. The Maximum number of members in a Private Company is restricted to 200. The Public Company have no restriction on a maximum number of members.

The software company promoted by Nayayan Murthy is __________.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. Wipro

  2. Infosys

  3. Satyam

  4. HCL

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Correct Option: B
Explanation:

Narayanmurthy and six software professionals founded Infosys in 1981 with an initial capital injection of Rs 10,000, which was provided by his wife Sudha Murthy. Narayanmurthy served as the CEO of Infosys for 21 years from 1981 to 2002 and was succeeded by co-founder Nandan Nilekani.

Memorandum of association of a firm contains ____________.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. rules regarding the internal management of the company

  2. rules regarding the constitution and activities of the company

  3. rules regarding the external management

  4. rules regarding the constitution

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Correct Option: B

Operating leverage examines _________________________.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. The effect of the change in the quantity on EBIT

  2. The effect of the change in EBIT on the EPS of the company

  3. The effect of the change in output to the EPS of the company

  4. The effect of change in EPS on the output of the company

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Correct Option: A

The duties of Company Secretary s regarding company meetings are restricted upto _______________.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. Before company meeting

  2. During company meeting

  3. After company meeting

  4. ln all the above situations

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Correct Option: D

State, with reasons, whether the following statements are True and False.
The objective of SEBI is to protect interest of the companies.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. True

  2. False

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Correct Option: B
Explanation:

False. 
Reasons: The main objectives of SEBI are as under. 
1. To promote fair dealing by the issue of securities and to ensure a market place where (they) companies or institutions can raise funds at relatively low cost. 
2. To provide protection to the investors and protect their rights and interests so that there is a steady flow of savings into the market. 
3. To regulate and develop a code of conduct and fair practices by intermediaries like brokers etc. with a view to make them competitive and professional. 
4. It aims at protection to investors and safeguard the rights and interest of small to big investors alike. 
5. It aims to provide a code of conduct of all the players in the market like brokers and provide the best of professional and competitive atmosphere in the Indian Capital market. 
6. 6. SEBI therefore is more pro investor than pro company. 

Which of the following is / are true?

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. A company following an aggressive working capital policy will finance its current assets more from long-term sources

  2. A company following a conservative working capital policy will finance its current assets from long-term sources

  3. A company having a conservative working capital policy will have a higher current ratio than one following an aggressive working capital policy.

  4. Both (A) and (C) above

  5. Both (B) and (C) above

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Correct Option: E
Explanation:

The investment in current assets for a given level of forecasted sales will be higher if the management follows a conservative attitude. Hence statements (B) and (C) are true.

The success of the company is measured by its ______________.

business organisation and correspondence joint stock company 3 - promotion and formation of a company formation and promotion of a company promoter promotion and formation of a company

  1. Current profits

  2. Long-term growth

  3. Expected profits

  4. Both (A) and (B)

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Correct Option: D
Explanation:
  1. Look At Your Business's Financial Statements.
  2. Check Customer Satisfaction.
  3. Average How Many New Customers You Get.
  4. Conduct Performance Reviews.
  5. Stay Current On The Market.
  6. Assess Your Own Expectations
  7. Current profits
  8. 8. Long term growth