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CBSE Questions for Class 11 Commerce Business Studies Forms Of Business Organisation Quiz 12 - MCQExams.com
CBSE
Class 11 Commerce Business Studies
Forms Of Business Organisation
Quiz 12
One of the consequences of non-registration of a partnership firm is that _______________________________.
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A partner cannot sue the other partner to enforce a right arising from a contract
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The partner of such a firm cannot sue third parties
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Third parties cannot sue the firm for claims exceeding Rs $$100$$
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The official Assigner or Receiver will have no power on the property of the dissolved firm
Explanation
Option A is the correct answer.
Partnership is a form of business organisation in which business debts can be recovered from
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The managing partners
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All the managers and partners
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The firm and the managers
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The firm and all the partners
Explanation
Option D is the correct answer.
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.
Tick mark the correct answer.
A nominal partner.
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Receives a share in profits
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Takes part in business activity
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Does not receive a share in profits
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None of the above
Explanation
Option A is the correct answer.
Match List I with List II and select the correct answer using the codes given below the lists.
List I
List II
A.
Cooperative society
1.
Collective business
B.
Joint Hindu Family
2.
Purchase/Transfer of share
C.
Joint stock company
3.
By virtue of birth
D.
Partnership firm
4.
Common mutual interest
5.
Mutual contract
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A - 5, B - 4, C - 1, D - 3
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A - 1, B - 3, C - 2, D - 5
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A - 4, B - 3, C - 2, D - 5
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A - 4, B - 1, C - 2, D - 3
Explanation
List 1
List 2
Cooperative society
Common mutual interest
Joint Hindu Family
By virtue of birth
Joint stock company
Purchase/Transfer of share
Partnership firm
Mutual contract
The Companies Act does not prohibit the formation of one-man company.
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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.
Vertical combination helps to _____________________.
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Achieve economy by combining allied activities
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Survive during the times of depression
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Fight a common enemy
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Add new product lines
Explanation
Vertical combination helps to achieve economy by combining allied activities. It helps to facilitate continuous utilization of resources. Vertical combination or integration can be defined as the combination of different firms engaged in different processes for manufacturing a given product.
Identify the limitation of sole trading concern from the following.
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Sense of accomplishment
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Ease of formation and closure
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Limited liability
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Decision making may not be balanced in all the cases.
Explanation
The main
disadvantages
to being a
sole proprietorship
are: Unlimited liability: Your small business, in the form of a
sole proprietorship
, is personally liable for all debts and actions of the company. Unlike a corporation or an LLC, your business doesn't exist as a separate legal entity.
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.
The maximum number of partners for a firm carrying on banking business is _________.
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10
0%
20
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7
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0
Explanation
Option A is correct One.
The new Companies Act 2013 has prescribed the maximum number of members in case of a partnership firm should not be more than
100
in case of partnerships. As per the previous Companies Act 1956, the maximum limit in case of partnerships was
10
and
20
for banking business and other businesses respectively.
A 'Co-parcener' is one who is _________ .
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An active member of a partnership
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A member of a Joint Hindu Family Firm
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A member of Joint Stock Company
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A member of co-operative society
Transfer of business includes __________.
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Sale
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Lease
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License
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All the above
Explanation
Option D is the correct answer.
The most numerous form of business ownership in the United States is the:
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partnership
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subchapter S corporation
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sole survivorship
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sole proprietorship
Explanation
A Sole Proprietorship consists of one individual doing
business
. Sole Proprietorships are
the most numerous form of business organization
in the
United States
, however, they account for little in the way of aggregate
business
receipts.
Therefore, D is the correct answer.
It is true that.
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formal organizations are the same as institution
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formal organizations are based on groups of people
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institutions are groups of people
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institutions are voluntary
Explanation
Option B is the correct answer.
Which one of the following is not a feature of Limited Liability Partnership firm?
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Partners should be less than $$20$$
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Partnership and management need not be separate
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Internal governance may be decided by mutual agreement among partners
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It is a corporate body with perpetual succession
Explanation
Option A is the correct answer.
Model, in which produced unit doubles every time as cumulative average time per unit decreases, by a constant percentage can be classified as ____________________.
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cumulative average time learning model
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cumulative mean learning model
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cumulative weighted learning model
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cumulative average pricing model
Explanation
Model, in which produced unit doubles every time as cumulative average time per unit decreases, by a constant percentage can be classified as cumulative average time learning model. The cumulative average time learning curve represents the fact that the time spent to increase the production at a double rate.
The swap arrangement where principal amounts are not exchanged, but periodical payments will be a _______________.
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Currency swap
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Cross currency interest swap
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Interest rate swap
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Non-Financial swap
Explanation
The swap arrangement where principal amounts are not exchanged, but periodical payments will be a interest rate swap. According to the finance terms, an interest rate swap can be referred to an interest rate derivative. It involves exchange of interest rates between two parties.
Who among the following is an eligible investor in Sovereign Gold Bonds(SGBs)?
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Individuals
0%
HUFs
0%
Trusts
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Universities
Explanation
Option B is the correct answer.
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.
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.'
Who is the 'karta' in a Joint Hindu Family Business?
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By voting of members
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Senior-most male member
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Most Educated member of the family
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Any member can become
Explanation
The Joint Hindu Family Business is managed and controlled by the senior-most member of the family who is called Karta. Only the Karta has legal rights to enter into contracts with outsiders. He alone takes all the decisions of a business.
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.
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.
According to section 32(1) of the partnership Act a partner may retire
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With the consent of all the existing partners
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In accordance with an express agreement
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In the case of partnership at will, by giving notice in writing to all the partners
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In any of the above three ways
Explanation
Option D is the correct answer.
Which of the following are the conditions needed to prove an act of a partner is an act of a partnership firm?
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Such an act be done in a ordinary course of a partnership firm
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It must be related to the business of the firm
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Act must have been done in the name and on behalf of the firm
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All of the above
Explanation
Every act of the partners must be done according to and related to the firm. Partner is an agent of the firm and his other partners for the purpose of the business of the partnership, and the acts of every partner who does any act for carrying on in the usual way business of the kind carried on by the firm of which he is a member bind the firm and his partners, so it should be done according to the business. An act or instrument relating to the business of the firm done or executed in the firm name, or in any other manner showing an intention to bind the firm, by any person thereto authorized, whether a partner or not, is binding on the firm and all the partners.
Hence, option D is correct.
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.
Any person dealing with a company is deemed to have a knowledge of its
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Memorandum of association
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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.
When partnership is between two HUF then _________.
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members of both the HUF are taken in account for the calculation of maximum number of person who can form a partnership firm including minors
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members of both the HUF are taken in account for the calculation of maximum number of person who can form a partnership firm excluding minors
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there can not be a partnership between two HUF
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none of the above
Explanation
The affairs of the HUF are looked after and managed by its krta . When two kartas of two HUF enter into a partnership agreement the partnership is popularly described as one between the two HUF but in the eye of law it is a partnership between the two kartas and the other members of the families do not ipso facto become partners . There is , however nothing to prevent the individual members of one HUF from entering into a partnership with the individual members of another HUF and in such a case it is a partnership between the individual members and it is a wholly inappropriate to describe such a partnership as one between two HUF.
Which of the following is not true about Matrix Organisation?
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It is relatively permanent
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Its project managers authority is distributed reasonably
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There is slow information processing
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Its project heads have to share resources with functional heads
Explanation
Option C is the correct answer.
A partner who neither contributes capital nor share profits of the firm is called a.....
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Sub-partner
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Sleeping partner
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Nominal partner
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Active partner
Explanation
Option C is the correct answer.
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.
The board must hold an extraordinary general meeting, within_______days of having
received a valid requisition for it.
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0%
14
0%
21
0%
30
0%
45
Explanation
Option D is the correct answer.
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