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CBSE Questions for Class 10 Elements Of Business Joint Stock Company Quiz 4 - MCQExams.com
CBSE
Class 10 Elements Of Business
Joint Stock Company
Quiz 4
Tick mark the correct answer.
Physical verification of fixed assets is the primary responsibility of the___________.
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Auditor
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Management
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Government
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Shareholders
Explanation
Option A is the correct answer.
Physical verification of fixed assets is the primary responsibility of the auditor.
Conversion of shares of a smaller denomination into shares of a bigger denomination is called
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Consolidation
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Sub-division
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Restructuring
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All of these
Explanation
Option A is the correct answer.
Conversion of shares of a smaller denomination into shares of a bigger denomination is called consolidation.
Which is the first step in the process of Contract Manufacturing?
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Contract manufacturer manufactures and reports progress to the original equipment manufacturer
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Customer places a sales order
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Product shipped on the customer's request.
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Manufacturing is outsourced partially to a contract manufacturer.
Explanation
A contract manufacturer is a manufacturer that contracts with a firm for components or products. It is a form of outsourcing. A contract manufacturer performing packaging operations is called co packer or a contract packager.
Which of the following industry(ies) is/are example(s) of Contract Manufacturing?
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Defense
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Medical
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Telecommunications
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All of the above
Explanation
Contract manufacturing
is an approach to international marketing in which a business pays, a foreign business to
manufacture
its product and market it in a foreign country, under the domestic businesses' name. For
example
, Nike use
contract manufacturers
in South East Asia to produce their sporting goods.
Contract manufacturing is a business process in which an organization known as ____________ outsources manufacturing to another organization.
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Contract Manufacturer
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Original Equipment Manufacturer (OEM)
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Order Manager
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None of the above
Explanation
OEM
(pronounced as separate letters) is short for the
original equipment manufacturer
, which is a somewhat misleading term used to describe a company
that has a special relationship with computer and IT producers.
OEMs
are
manufacturers
who resell another
company's
product under their own name and branding.
The Companies Act does not prohibit the formation of one-man company.
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0%
True
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False
Explanation
The statement is false.
The Companies Act prohibits the formation of one-man company.Therefore the statement is false.
Which of the following is/are the advantage(s) of contract manufacturing?
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There is hardly any investment risk involved in the foreign countries.
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It helps international firms in getting products manufactured or assembled at lower costs.
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Local producers in foreign countries also gain from contract manufacturing.
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All of the above
Explanation
A contract manufacturing company may offer significant cost advantages over an organization's internal production facilities. Because contract
manufacturing companies will specialize in developing certain kinds of products, it can start a high-volume production line while implementing all of its' cost-saving measures.
_________ is one form of outsourcing that allows companies to improve their production capability, get new services they cant manufacture themselves or reduce their production costs.
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Export
0%
Import
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Contract manufacturing
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None of the above
Explanation
A
contract manufacturing
company may offer significant cost
advantages
over an organization's internal
production
facilities.Because
contract manufacturing
companies will specialize in developing certain kinds of products, it can start a high-volume
production
line while implementing all of its' cost saving measures
A company using a contract manufacturer in a low-cost country, for example, may incur shipping costs that cancel out any unit cost advantages.
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0%
True
0%
False
Explanation
Contract manufacturing
allows
a company
to
use
the products or services that are manufactured by another external production
company
, The client will then take that product or service and
use
their own customer service, marketing, and packaging to sell the goods.
Hence, the above statement is true.
A company is known as the holding company of another company if it has control over the other company.
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True
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False
Explanation
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.
Flextronics Corporation is a famous name in the field of Contract Manufacturing.
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True
0%
False
Explanation
Flex Ltd. is an American multinational technological manufacturer. It is the third largest global electronics manufacturing services, original design manufacturer company by revenue, behind only Taiwan's Pegatron to original equipment manufacturers.
In $$1981, 7$$ engineers in Pune , Founded the following company
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L & T
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Infosys
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Wipro
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TCS
Explanation
A) L & T:
Larsen & Toubro Limited, (L & T) is founded on $$7^{th}$$ February $$1983$$.
Founders of L & T are Henning Holck-Larsen and Soren Kristian Toubro.
B) Infosys:
Infosys is founded on $$7^{th}$$ July $$1981$$.
Infosys was founded by $$7$$ Engineers
1) N.R Narayana Murthy
2) Nandan Nilekani
3) S. Gopala Krishnan
4) S.D. Shibulal
5) K. Dinesh
6) N.S. Raghavan
7) Ashok Arora.
C) Wipro:
Wipro is founded on $$29^{th}$$ December $$1945$$ founder of Wipro is Mohamed Premji.
D) TCS:
Tata Consultancy Services (TCS) is founded in $$1968$$. Founder of TCS Tata Sons.
So, from the above we can say that, In $$1981, 7$$ engineers in Pune founded Infosys.
$$\therefore $$ Option B. Infoysys is correct answer.
The company that hires the contract manufacturer should keep in mind that the manufacturer has other customers. This is identified from which of the following limitations?
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Lack of Control
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Relationships
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Quality Concern
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Capacity Concerns
Which document is an invitation to general public to subscribe to the securities of a company?
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MoA
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AoA
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Prospectus
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Certificate of Incorporation
Explanation
According to the Companies Act, 2013, 'a prospectus is any document (including any notice, circular, advertisement, or other documents) that invites deposits or offers from the public for the subscription or purchase of any shares or debentures of a body corporate.'
Which clause of the Memorandum of Association defines powers and limitation of a company?
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Name clause
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Object clause
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Liability clause
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Situation clause
Explanation
Object Clause - It contains the main objective of the company and the secondary objectives which the company may pursue. This clause defines the scope and limitation of the activities of the company.
_____________ is known as the outsourcing of the production process, wholly or partially, to focus on core competencies.
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Licensing
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Franchising
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Contract manufacturing
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Joint Venture
Explanation
Contract manufacturing refers to a type of international business where a firm enters into a contract with one or a few local manufacturers in foreign countries to get certain components or goods produced as per its specifications. It helps firms to focus on marketing activities and outsource the work of manufacturing.
Hence, option (C) is the correct answer.
The government declared _____ public sector undertakings as Navaratnas.
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16
0%
9
0%
14
0%
12
Explanation
As of 2021, there are 7 Maharatna,
16 Navratna
, and 71 Miniratna CPSEs.
The Navratna Companies are
Public Sector Enterprises (PSEs)
that can invest up to Rs. 1000 crore or 15% of their net worth on a single project without seeking approval from the government.
Who elects the Board of Directors of a company?
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Employees
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Debenture holders
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Government
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Shareholders
Explanation
The company form of business is owned by the shareholders. They elect their representatives who are called directors of the company. The directors manage and control the activities of the company by appointing professional experts.
Which clause of MoA explains the powers and restrictions of a corporation?
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Name clause
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Objective clause
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Liability clause
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Domicile clause
Explanation
The objectives clause is one of the clauses of the Memorandum of Association. It contains the main objective and power of the company. This clause defines the scope and limitation of the activities of the company.
Which document is known as the charter of a company?
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Memorandum of Association
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Articles of Association
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Prospectus
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Registration certificate
Explanation
The Memorandum of Association (MOA) of a company defines the constitution and the scope of powers of the company. In simple words, the MOA is the foundation on which the company is built. Hence, it is called the charter of the company.
Perpetual succession indicates______
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Registration of partnership firm is compulsory.
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Limited scope for rising fund
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Separate legal entity, separate from its members
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Liability of the partners is limited to his contributes to capital
Explanation
Perpetual succession indicates
separate legal entity, separate from its members
.
Reason: Insolvency or death of member does not affect the existence of the company. This means perpetual succession.
Hence, the correct option is C.
A holding company set up only to unite and control its subsidiaries is called a
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Proprietary holding company
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Primary holding company
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Political holding company
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Pure holding company
Explanation
Option D is the correct answer.
To help individuals and business realize their full potential. Is the vision of
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Cognizant
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Apple
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Microsoft
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Walmart
Explanation
"To help people and business throughout the world realize their full potential." is a vision statement of Microsoft Corporate.
$$\therefore $$ Option C. Microsoft is correct answer.
Which of the following is the recently introduced form of business organization in INDIA wide companies Act $$2013$$ ?
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LLP
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Sole proprietorship
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OPC
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Private limited company
Explanation
One person company (OPC)
is a recently introduced form of business organization in INDIA wide companies Act, $$2013$$.
Hence, C is the correct option.
When is a company said to have been registered?
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When it files the memorandum of association with the Registrar of Companies
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When it gets the certificate of incorporation
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When it gets the certificate of commencement of business
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When it actually starts its business
Explanation
Option B is the correct answer.
The board must hold an extraordinary general meeting, within_______days of having
received a valid requisition for it.
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14
0%
21
0%
30
0%
45
Explanation
Option D is the correct answer.
Any person dealing with a company is deemed to have a knowledge of its
Report Question
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Memorandum of association
0%
Articles of association
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Both the above
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None of the above
Explanation
Option C is the correct answer.
Any person dealing with a company is deemed to have a knowledge of its Memorandum of Association as well as Articles of Association.
If a public limited company does not issue prospectus which of these conditions must be satisfied before commencement of business
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To file a statement in lieu of prospectus
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To file necessary declaration signed either by one of the director or company secretary
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Both
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Either a or b
Explanation
Option C is the correct answer.
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Practice Class 10 Elements Of Business Quiz Questions and Answers
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