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CBSE Questions for Class 11 Commerce Business Studies Business Services Quiz 3 - MCQExams.com
CBSE
Class 11 Commerce Business Studies
Business Services
Quiz 3
For passing an ordinary resolution, _____ percent votes are necessary.
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0%
more than 20
0%
more than 30
0%
more than 40
0%
more than 50
Explanation
An ordinary resolution refers to a resolution passed by the members of the company by a simple majority. At least 51% members's consent should be recorded in favor of the motion passed in an ordinary resolution.
For passing a special resolution, ______ majority is required.
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0%
25%
0%
50%
0%
75%
0%
90%
Explanation
A special resolution is a resolution of the company’s shareholders where at least 75% of the votes cast by shareholders shall be in favor of it in order for it to be passed.
Special business is transacted in a Special Resolution.
According to the Companies Act, 2013, a
resolution shall be a special resolution when—
(a) the intention to propose the resolution as a special resolution has been duly specified in the notice calling the general meeting or other intimation given to the members of the resolution;
(b) the notice required under this Act has been duly given; and
(c) the votes cast in favour of the resolution, whether on a show of hands, or electronically or on a poll, as the case may be, by members who, being entitled so to do, vote in person or by proxy or by postal ballot, are required to be not less than three times the number of the votes, if any, cast against the resolution by members so entitled and voting.
A written record of the business transacted and the resolution passed at the meeting is minute.
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0%
True
0%
False
Explanation
Minutes of meeting is an official record of the proceedings of a meeting. A record of minutes of meeting is to be kept in a minutes book maintained at the Registered office of the company or at a place approved by the Board of Directors of the company.
Hence, the following statement is true.
A motion finally passed at the meeting is called ______________.
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0%
a resolution
0%
the minutes of meeting
0%
an agenda
0%
None of these
Explanation
At a company meeting, a motion is put to vote. Once the motion is passed, it becomes a resolution.
Minutes are the written records of the meeting. They include the details of attendees, issues raised, related responses, final decisions taken to address the issues.
Agenda is the list of items that are to be considered in a meeting. It is also called as order or business.
State the following statements is True or False:
A person appointed by a member to attend and vote at meeting is known as proxy.
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0%
True
0%
False
Explanation
According to the Companies Act, any member of a company entitled to attend and vote at a meeting of the
company shall be entitled to appoint another person as a proxy to attend and vote at the
meeting on his behalf.
Provided that a proxy shall not have the right to speak at such meeting and shall not be
entitled to vote except on a poll.
An alteration proposed to the original motion. is called _______________.
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0%
Agenda
0%
Resolution
0%
Amendment
0%
None of these
Explanation
1.Agenda is the list of items that are to be considered in a meeting. It is also called as order or business.
2.At a company meeting, a motion is put to vote. Once the motion is passed, it becomes a resolution.
3.If changes viz addition of words, deletion of words, substitution of words, are made in a motion under discussion before putting it to vote, they are amendments.
Thus, an alteration proposed to the original motion is called as an amendment.
A motion which brings to the notice of the Chairman the irregularities of the meeting is called ___________.
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0%
minutes of Meeting
0%
ordinary resolution
0%
special resolution
0%
point of order
Explanation
Point of order is an interruption to a meeting. Any member can raise a question regarding the procedure of the meeting. When a debate on a particular motion is in progress, a member may raise a point of order and make interruption of the debate by drawing attention of the Chairman to some irregularity in the proceedings.
State the following statement is True or False:
The persons who are trustees, agents and managing partners of the company are the directors.
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0%
True
0%
False
Explanation
Since the company is an artificial person, Director acts an agent of the company. Director acts as a trustee by safeguarding the financial and other resources of the company. He/She acts as a managing partner by managing the company's affairs under the guidance of the Board of Directors.
Elected representative of the shareholders is called a __________.
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0%
Shareholder
0%
Director
0%
Secretary
0%
None of these
Explanation
Director is a person elected by shareholders of the company. The Board of Directors is a team of people elected by a corporation's shareholders to represent the shareholders' interests and ensure that the company's management acts on their behalf. The head of the board of directors is the chairman or chairperson of the board.
The body of the elected representatives of the shareholders is the Board of Directors.
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0%
True
0%
False
Explanation
The Board of Directors is a team of people elected by a corporation's shareholders to represent the shareholders' interests and ensure that the company's management acts on their behalf. The head of the board of directors is the chairman or chairperson of the board.
Hence, the following statement is true.
State the following statement is True or False:
A Director who is entrusted with the substantial powers of management is the Managing Director.
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0%
True
0%
False
Explanation
Managing director is defined by the Companies Act 2013 as-
'a director who, by virtue of the articles of a company or
an agreement with the company or a resolution passed in its general meeting, or by
its Board of Directors, is entrusted with substantial powers of management of the
affairs of the company and includes a director occupying the position of managing
director, by whatever name called.
State the following statement is True or False:
At the event of loss, insurance policy holders submit a claim.
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0%
True
0%
False
Explanation
The policy issued to the policyholder is a promise of assistance at the time of the uncertain incident(s) for which the policy has been issued. Once the event occurs, the policyholder lodges a claim to activate the insurer’s response. If the claim is accepted, the insurer will fulfill the promise by reimbursing the money assured.
Hence, the following statement is true.
The meeting in which the auditors are appointed is the Annual General Meeting.
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0%
True
0%
False
Explanation
According to Section 139 of the Companies Act,
every company shall, at the first
annual general meeting, appoint an individual or a firm as an auditor who shall hold office
from the conclusion of that meeting till the conclusion of its sixth annual general meeting and
thereafter till the conclusion of every sixth meeting.
The manner and procedure of selection
of auditors by the members of the company at such meeting shall be such as may be prescribed.
Insurance is a form of risk management.
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0%
True
0%
False
Explanation
Insurance is a form of risk management. It is a substitution of the premium for a risk of large possible loss. Such loss is spread over a large number of policyholders exposed to the same risk.
State the following statement is True or False:
Fire Insurance is a contract to cover risk of loss due to fire.
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0%
True
0%
False
Explanation
Fire insurance is a contract whereby
the insurer, in consideration of the
premium paid, undertakes to make
good any loss or damage caused by fire
during a specified period up to the
amount specified in the policy.
Normally, the fire insurance policy is
for a period of one year after which it is
to be renewed from time to time.
Hence, the following statement is true.
State the following statement is True or False:
All insurance contracts are contracts of indemnity, except the contract of life insurance.
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0%
True
0%
False
Explanation
Uncertainties have led to the formation of the concept of insurance. Insurance is a contract where one party agrees to indemnify the loss of other party at the time of loss, for consideration. The principle of indemnity in an insurance contract safeguards the insured to put him in the same position that he/she would have been in if the loss had not occurred. However, the principle of indemnity does not apply to life insurance contracts.
Thus it can be said that all contracts of insurance, except that of life insurance, are contracts of indemnity.
Hence, the following statement is true.
The fee charged by insurance companies is commonly known as 'premium'.
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0%
True
0%
False
Explanation
Uncertainties have led to the formation of the concept of insurance. Insurance is a contract where one party agrees to indemnify the loss of
other party
at the time of loss, for a consideration. Such consideration is generally called as 'premium'. It is the fee charged by insurance companies on the value insured.
State the following statement is True or False:
Marine Insurance gives the protection against financial loss due to perils of the sea.
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0%
True
0%
False
Explanation
Marine insurance is a form of the insurance contract which protects the insured against the loss from marine perils or loss by the impact of the sea. It insures ship hull, cargo, and freight. The insurer agrees to indemnify the loss due to damage of ship or cargo that occur from the risks incidental to sea.
State the following statement is True or False:
Insurance means protection against possible risk of loss.
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0%
True
0%
False
Explanation
Uncertainties have led to the formation of the concept of insurance. Insurance is a contract where one party agrees to indemnify the loss of
other party
at the time of loss, for a consideration. The principle of indemnity in an insurance contract safeguards the insured to put him in the same position that he/she would have been in if the loss had not occurred. However, the principle of indemnity does not apply to life insurance contracts. Thus insurance is a protection against possible risk of loss.
Select the option from the choices given below:
Marine insurance policy is generally issued for goods in ______.
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0%
factory
0%
godown
0%
voyage
0%
transport
Explanation
A marine insurance contract is an agreement whereby the insurer undertakes to indemnify the insured in the manner and to the extent thereby agreed against marine losses. The insurer guarantees to make good the
losses due to damage to the ship or cargo
arising out of the risks incidental to sea
voyages.
State the following statement is True or False:
Policy is the document which contains the terms and conditions of contract.
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0%
True
0%
False
Explanation
Contract of insurance is represented by the Policy document. A policy document includes details of premium, policy limit, and other particulars of the policy. In other words, a policy issued by the insurance company contains details of the terms and conditions of the contract.
Fill in the blank:
The principle of indemnity is not applicable to ______ insurance.
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0%
life
0%
fire
0%
marine
0%
motor
Explanation
Under life insurance, subject matter of insurance is the life of an individual. The principle of indemnity does not apply to a life insurance as the life of a person cannot be valued in terms of money. For this reason, actual loss cannot be arrived at. The amount of insurance is decided by each individual.
Under fire, marine, and motor insurance contracts the loss is measurable.
State the following statement is True or False:
Insurer undertakes to compensate the loss suffered by insured.
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0%
True
0%
False
Explanation
Insurance is a contract where one party agrees to indemnify the loss of other party at the time of loss, for a consideration. Insurer agrees to safeguards the insured to put him in the same position that he/she would have been in if the loss had not occurred. The principle of indemnity is applicable to the insurance contracts, except to life insurance contracts.
Select the option from the choices given below:
________ insurance is contract to cover risk of loss due to perils of the sea.
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0%
Fire
0%
Marine
0%
Life
0%
general
Explanation
Marine insurance is a form of the insurance contract which protects the insured against the loss from marine perils or loss by the impact of the sea. It insures ship hull, cargo, and freight. The insurer agrees to indemnify the loss due to damage of ship or cargo that occur from the risks incidental to sea.
State the following statement is True or False:
Accidental injuries or death risks are covered by marine insurance.
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0%
True
0%
False
Explanation
Marine insurance is a form of insurance contract which protects the insured against the loss from marine perils or loss by the impact of the sea. It insures ship hull, cargo, and freight.
The insurer agrees to indemnify the loss due to damage of ship or cargo that occur from the risks incidental to sea.
Thus, marine insurance does not cover the loss of life or injuries due to accidents.
Hence, the following statement is False
Select the option from the choice given below:
The principle of indemnity is not applicable to _____ insurance.
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0%
life
0%
fire
0%
marine
0%
none of these
Explanation
Under life insurance, subject matter of insurance is the life of an individual. The principle of indemnity does not apply to a life insurance as the life of a person cannot be valued in terms of money. For the reason, actual loss cannot be arrived at. The amount of insurance is decided by each individual.
Fire and marine insurance are contracts of indemnity as the loss is measurable.
State the following statement is True or False:
Premium is a regular payment made by he insured to insurer.
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0%
True
0%
False
Explanation
Insurance is a contract where one party agrees to indemnify the loss of
other party
at the time of loss, for a consideration. Such consideration is generally called as 'premium'. It is the fee charged by insurance companies on the value insured. Premium is paid to the insurer at regular intervals.
State the following statement is True or False:
The document which contains the insurance contract is a policy.
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0%
True
0%
False
Explanation
Contract of insurance is represented by the Policy document. A policy document includes details of premium, policy limit, and other particulars of the policy. In other words, a policy issued by the insurance company details the terms and conditions of the contract.
State the following statement is True or False:
The principle of insurance under which the compensation paid to the insured which is equal to the actual loss is indemnity.
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0%
True
0%
False
Explanation
According
to the concept of indemnity, The insurer undertakes to put the
insured, in the event of loss, in the same
position that he occupied immediately
before the happening of the uncertain event
. In other words, the
insurer undertakes to compensate the
insured for the loss caused to him/her
due to damage or destruction of the
property insured.
The compensation
payable and the loss suffered is to be
measured in terms of money. The
principle of indemnity is not applicable
to life insurance.
Hence, the following statement is true.
State the following statement is True or False:
The amount payable by the insured to the insurer in installments for protection against risk is premium.
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0%
True
0%
False
Explanation
Insurance is a contract where one party agrees to indemnify the loss of
other party
at the time of loss, for a consideration. Such consideration is generally called as 'premium'. It is the fee charged by insurance companies on the value insured. Premium is paid in installments to the insurer at regular intervals.
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