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CBSE Questions for Class 10 Elements Of Business Joint Stock Company Quiz 1 - MCQExams.com
CBSE
Class 10 Elements Of Business
Joint Stock Company
Quiz 1
As per the Companies Act, what is the maximum number of directors a public company can have?
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0%
Four
0%
Ten
0%
Fifty
0%
No limit is prescribed
Explanation
Option D is the correct answer.
Tick mark the correct answer.
The company auditor has a right of access to.
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0%
The company's books of costing
0%
The books of account and vouchers
0%
The statutory and statistical books
0%
All the above
Explanation
Option D is the correct answer.
Identify the limitation(s) of Contract Manufacturing.
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There is no way hiring company can force the manufacturer not to enter into a contract with a competitor.
0%
The hiring company is also likely to lose intellectual property rights to the design idea.
0%
The hiring company may end up not having the products when needed.
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All of the above
Explanation
Limitations of Contract Manufacturing
: The local firms producing under such kind of agreement are not free to sell the contracted output to anywhere and anybody else.Local
manufacturers
has no control over
manufacturing
process because the goods are produced as the per the guidelines given under the
contract.
As per _____ of the Companies Act, 2013 "company" means a company incorporated under Companies Act, 2013 or under any previous company law.
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Section 2(3)
0%
Section 2(20)
0%
Section 2(12)
0%
Section 2)25)
Who appoints
the
members
of
the
board
of
directors?
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0%
Employees
0%
Debenture holders
0%
Government
0%
Shareholders
Explanation
A joint-stock company is owned by the shareholders. These shareholders elect their representatives who are called directors of the company and are members of the board. The directors manage and control the activities of the company by appointing professional experts.
Who
are
the
true
owners
of a joint stock company
?
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0%
Employees
0%
Debenture holders
0%
Shareholders
0%
Creditors
Explanation
A joint-stock company is owned by its shareholders. The capital raised by the issue of equity shares is known as owners' capital or owners' funds, and it represents ownership in a company.
Who undertakes the management and control of the affairs of the company on behalf of owners?
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Board of directors
0%
Departmental heads
0%
Managing Director
0%
Vice President
Explanation
The company form of business is owned by the shareholders. These shareholders elect their representatives who are called the directors of the company. These directors are collectively called the Board of Directors. The board manages and controls the activities of the company by appointing professional experts.
The structure of an organisation in which there is separation of ownership and management is called ________.
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0%
sole proprietorship
0%
partnership
0%
company
0%
cooperative society
Explanation
Company is a form of business organisation in which there is a separation of ownership and management. Company as a legal person has a separate entity different from its members and is managed by the Board of Directors elected by the shareholders.
The appropriate sequence of the formation for a company are in the following order:
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Promotion, commencement of business and incorporation
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Promotion, incorporation, capital subscription and commencement of business
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Capital subscription, promotion, incorporation and commencement of business
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Incorporation, capital subscription, commencement of business and promotion
Explanation
The whole process of company formation is divided into four stages and that are to be completed simultaneously in the following order i.e. Promotion, Incorporation, Capital Subscription and then commencement of business.
Outsourcing a part or entire production and concentrating on marketing operations in international business is known as ________.
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Licensing
0%
Franchising
0%
Contract manufacturing
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Joint venture
Explanation
Contract manufacturing is basically the outsourcing of part of the manufacturing process of a product to a third party. It is used by many U.S. companies. Hence, outsourcing a part or entire production and concentrating on marketing operations in international business is known as contract manufacturing.
A company comes into existence only after its ____________.
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Promotion
0%
Formation
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Registration
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Operation
Explanation
Registered or Incorporated
Companies
These
companies
are formed/incorporated under
the companies
act passed by
the
government. These
companies
come
into existence only after
these are registered under
the
act and
the
certificate of incorporation is passed by
the
Registrar of
companies
.
The board of directors of a joint stock company is elected by the _______________.
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General Public
0%
Government Bodies
0%
Shareholders
0%
Employees
Explanation
The board of directors of a joint stock company are elected by the Shareholders. Every shareholder is entitled to vote without considering the number of shares held by him/her. It leads to the democratic election of directors.
The capital of a company is divided into number of parts each one of which is called ___________
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Dividend
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Profit
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Interest
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Share
Explanation
Share refers to a part of capital of a company which is divided among a number of people. People who purchase the shares of a company are known as the shareholders and are also considered as the owners of a company.
Which of the following is not an essential characteristic of a company?
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Company is an artificial person created by law
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Company has a separate legal entity
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Company has not a perpetual succession
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Company has a common seal
Explanation
A company is a separate legal entity different from its members or shareholders. It is an artificial person created by law that can enter into an agreement in its own capacity, can sue and also be sued. It also has a common seal. As a company is an artificial person and not a natural person, it has a perpetual succession. Death of any member or shareholder does not affect its existence.
Thus, the correct answer is C.
The Structure in which there is separation of ownership and management is called ______________.
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0%
Sole proprietorship
0%
Partnership
0%
Company
0%
All business organisations
Explanation
Company is the form of business organisation in which there is a separation of ownership and management. Company has a separate legal entity from its members. Management professionals of the firm are not considered as the owners of the firm.
The liability of the members in a Joint Stock Company is __________.
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0%
restricted
0%
limited
0%
unlimited
0%
constant
Explanation
The liability of the members in a joint stock company is limited while company itself has unlimited liability since it has its existence in the eyes of law and is considered as an artificial person.
A Joint Stock Company has ___________life.
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0%
short
0%
limited
0%
continuous
0%
none of these
Explanation
A joint stock company has a continuous life. It implies death, insanity, insolvency or retirement of any of its shareholders, owners, board of directors or employees cannot lead to the closure of company. Company can run for a longer period of time.
A public company need to have minimum ___________ members.
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0%
two
0%
five
0%
seven
0%
ten
Explanation
Under the Companies Act 2013, minimum 7 members are required to start a public company.
A Joint Stock Company is managed by __________.
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0%
Shareholders
0%
Secretary
0%
Board of Directors
0%
Single Owner
Explanation
A joint stock company is managed by the board of directors who are elected by the shareholders. All the shareholders are entitled to vote in the decision making process. Board of directors have powers in the management of the business.
A Joint Stock Company is _______ person.
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natural
0%
an artificial
0%
imaginary
0%
None of these
Explanation
A joint stock company has an independent status i.e. it has a separate legal entity from its members. It has an independent existence in the eyes of law and can also purchase and sell property in its own name.
A Joint Stock Company collects __________ capital.
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0%
limited
0%
huge
0%
moderate
0%
small
Explanation
The joint stock company collects huge capital from public by dividing its capital in a small unit called shares and inviting subscription from general public on these shares. Holding these shares ensures dividend to the shareholders and provides them voting powers in the decision making process of the business.
There is no Government Control and Supervision over the working of Joint Stock Company.
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0%
True
0%
False
Explanation
Government has a control and supervision over the working of Joint stock company. It needs to keep an eye on the workings to know that malpractices are not being done and company is filing the income tax returns regularly, and production takes place without affecting the environment.
A Joint Stock Company has independant________.
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0%
survival
0%
legal status
0%
capital
0%
none of these
Explanation
A joint stock company has an independent status i.e. it is a separate legal entity from its members. It has an independent existence in the eyes of law and can also purchase and sell property in its own name.
Joint Stock Company enjoys _______status.
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0%
no
0%
legal
0%
illegal
0%
regular
Explanation
A joint stock company has an independent status i.e. it has a separate legal entity from its members. It has an independent existence in the eyes of law and can also purchase and sell property in its own name.
The liability of shareholders in a Joint Stock Company is __________.
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0%
limited
0%
unlimited
0%
constant
0%
none of these
Explanation
The liability of the members in a joint stock company is limited while company itself has unlimited liability since it has its existence in the eyes of law and is considered as an artificial person and members are not required to pay debts from their personal assets.
The business organisation which enjoys a separate legal existence is a___________.
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0%
Partnership firm
0%
Joint stock company
0%
Government organisation
0%
None of these
Explanation
A joint stock company has an independent status i.e. it has a separate legal entity from its members. It has an independent existence in the eyes of law and can also purchase and sell property in its own name.
A person who purchases share of Joint Stock Company is called __________.
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0%
Partner
0%
Proprietor
0%
Shareholder
0%
Promoter
Explanation
A person who purchases the shares of a company is known as Shareholder and they are also considered as the owners of Company. They are given dividends out of profits and are given voting powers in the decision making process of business.
Fill in the blanks and rewrite the sentence:
The organisation which enjoys a separate legal status is a ___________.
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0%
Joint Stock Company
0%
Non-profit organisation
0%
Co-operative organisation
0%
Government organisation
Explanation
A joint stock company has an independent status i.e. it has a separate legal entity from its members. It has an independent existence in the eyes of law and can also purchase and sell property in its own name.
The form of commercial organisation suitable to carry on large scale business is called ______________.
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0%
Joint stock company
0%
Co-operative society
0%
Partnership firm
0%
None of these
Explanation
The large scale business can be easily carried out by Joint stock company as capital can be easily accumulated by inviting subscriptions from the general public in the form of shares and companies have a long and stable life i.e. perpetual succession.
The Act which regulates the joint stock company is the __________.
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0%
Companies Act, 1956
0%
Companies Act, 1958
0%
Companies Act, 1959
0%
Companies Act, 1962
Explanation
Earlier, the Act which regulated the Joint stock company is the Companies Act 1956. But this Act has been amended recently in the year 2013, known as Companies Act 2013.
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