Joint Stock Company Test 1

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Joint Stock Company Test 1

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Weekly Quiz Competition

Question 1
1 / -0

Identify the limitation(s) of Contract Manufacturing.

A
There is no way hiring company can force the manufacturer not to enter into a contract with a competitor.

B
The hiring company is also likely to lose intellectual property rights to the design idea.

C
The hiring company may end up not having the products when needed.

D
All of the above

Solution

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.
Question 2
1 / -0

As per _____ of the Companies Act, 2013 "company" means a company incorporated under Companies Act, 2013 or under any previous company law.

A
Section 2(3)

B
Section 2(20)

C
Section 2(12)

D
Section 2)25)
Question 3
1 / -0

Who appoints the members of the board of directors?

A
Employees

B
Debenture holders

C
Government

D
Shareholders

Solution

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.
Question 4
1 / -0

Who are the true owners of a joint stock company?

A
Employees

B
Debenture holders

C
Shareholders

D
Creditors

Solution

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.
Question 5
1 / -0

Who undertakes the management and control of the affairs of the company on behalf of owners?

A
Board of directors

B
Departmental heads

C
Managing Director

D
Vice President

Solution

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.
Question 6
1 / -0

The structure of an organisation in which there is separation of ownership and management is called ________.

A
sole proprietorship

B
partnership

C
company

D
cooperative society

Solution

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.
Question 7
1 / -0

The appropriate sequence of the formation for a company are in the following order:

A
Promotion, commencement of business and incorporation

B
Promotion, incorporation, capital subscription and commencement of business

C
Capital subscription, promotion, incorporation and commencement of business

D
Incorporation, capital subscription, commencement of business and promotion

Solution

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.
Question 8
1 / -0

Outsourcing a part or entire production and concentrating on marketing operations in international business is known as ________.

A
Licensing

B
Franchising

C
Contract manufacturing

D
Joint venture

Solution

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.
Question 9
1 / -0

A company comes into existence only after its ____________.

A
Promotion

B
Formation

C
Registration

D
Operation

Solution

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.
Question 10
1 / -0

The board of directors of a joint stock company is elected by the _______________.

A
General Public

B
Government Bodies

C
Shareholders

D
Employees

Solution

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.

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Re-Attempt Weekly Quiz Competition

Joint Stock Company Test 1

Result

Joint Stock Company Test 1

Score

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Rank

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SHARING IS CARING

Question 1

There is no way hiring company can force the manufacturer not to enter into a contract with a competitor.

The hiring company is also likely to lose intellectual property rights to the design idea.

The hiring company may end up not having the products when needed.

All of the above

Solution

Question 2

Section 2(3)

Section 2(20)

Section 2(12)

Section 2)25)

Question 3

Employees

Debenture holders

Government

Shareholders

Solution

Question 4

Employees

Debenture holders

Shareholders

Creditors

Solution

Question 5

Board of directors

Departmental heads

Managing Director

Vice President

Solution

Question 6

sole proprietorship

partnership

company

cooperative society

Solution

Question 7

Promotion, commencement of business and incorporation

Promotion, incorporation, capital subscription and commencement of business

Capital subscription, promotion, incorporation and commencement of business

Incorporation, capital subscription, commencement of business and promotion

Solution

Question 8

Licensing

Franchising

Contract manufacturing

Joint venture

Solution

Question 9

Promotion

Formation

Registration

Operation

Solution

Question 10

General Public

Government Bodies

Shareholders

Employees

Solution

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