Joint Stock Company

Q.

Explain any five features of co-operative society.

Q.

Explain the factors to be considered while selecting a form of organisation.

Q.

How does a co-operative society exemplify democracy and secularism? Explain.

Q.

Discuss the characteristics, merits and limitations of co-operative form of organisation. Also describe briefly different types of co-operative societies.

Q.

Which forms of organization has the longest life time?

1. All of the above

2. Sole proprietorship

3. Partnership

4. Joint stock company

Q.

A joint stock company is a creation of law.

1. True

2. False

Q. What do you mean by formation of company.

Q. The form of organisation is considered to be most suitable for business activities on a large scale.

1. company
2. sole proprietorship
3. partnership

Q.

How does a co-operative society exemplify democracy and secularism? Explain

Q. A is created by law and only law can bring an end to its existence.

1. partnership
2. sole proprietorship
3. company

Q.

Which form of business organisation is best suited if the business needs a permanent structure?

Q.

Two individuals want to start an organisation but have a limited liability. What form of business organisation is this?

1. Sole Proprietorship

2. Joint Stock Company

3. Partnership

4. All of the above

Q.

What is the capital consideration in a company?

1. Very little resources

2. A little resources

3. None of the above

4. A lot of resources

Q.

A joint stock company is a group of people who come together to pursue a common economic objective, which leads to the formation of an entity that has a separate identity from its members.

1. True

2. False

Q.

State any two differences between a debenture and a bond.

Q. Joint Stock Company is board of directors company.

1. True
2. False

Q. If the investment fixed assets as plant and machinery does not exceed 1cr. Than that particular firm comes under the category of ?

Q. A Joint Stock Company is managed by the board of directors.

1. True
2. False

Q. The person appointed by the Board of Directors of the company in accordance with provisions of the Companies Act is secretary of a Joint Stock Company.

1. True
2. False

Q.

State the important privileges available to a private company.

Q. A Joint Stock Company has long and stable life.

1. True
2. False

Q. State whether the following statements are True or False:
(a) A joint stock company is separate legal entity.
(b) A company survives even if all its members die.
(c) A joint stock company is a voluntary association of persons.
(d) A joint stock company is less stable than a partnership.
(e) Registration of a joint stock company is optional.
(f) There can be no conflict of interest in a joint stock company.
(g) A company is an artificial legal person.

Q. A Joint Stock Company is an artificial person created by law.

1. True
2. False

Q. Given below are Legal Principles followed by a Factual Situation. Apply the principles followed by a factual Situation. Apply the principle to it and select the most appropriate answer for question among the four choices given.
LEGAL PRINCIPLE: A wife living with her husband has the implied authority of the husband to buy articles of household necessity. The husband is legally liable to pay the amount for the same.
FACTUAL SITUATION: Sunitha and her husband are living together. On 20th April, 2005, Sunitha bought a diamond necklace on credit from National Jewellers. She told them that Sundar will pay the price which was Rs. 1.5 lakhs. Sundar has not paid the amount.

1. National Jewellers will have to first proceed against Sunitha, if she does not pay, then Sundar is liable to pay.
2. Sunita can ask her parents to pay the amount.
3. National Jewellers cannot recover money from Sundar through court.
4. National Jewellers can recover money from Sundar through court.

Q. Which of the following are merits of partnership?

1. Easy to form
2. Flexibility
3. Risk sharing
4. Motivation
5. Secrecy
6. Uncertainity
7. Conflict
8. Time period

Q. The company has a capacity to sue and be _______.

1. Incorporated
2. Sued
3. None of the above
4. Both (a) and (b)

Q. "This is an organization where persons voluntarily associate for the promotion of economic interest of its members." Identify the organization and explain its features.

Q. When a person transacts with a company on matters which is beyond the power of the company, the person will be governed by the Doctrine of ______.

1. Management by Exception
2. Indoor Management
3. Constructive Notice
4. Self Management

Q. A person who finds goods is bound to take care of such goods as ______.

1. Man of ordinary prudence
2. All of the above
3. Man of extraordinary prudence
4. Man of overriding prudence