Joint Stock Company Test 6

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Joint Stock Company Test 6

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Weekly Quiz Competition

Question 1
1 / -0

Which of the following is / are disadvantage of company form of organization?

A
The window dressing of the prospectus often misleads the investors who are later on exploited by the promoters

B
Lack of secrecy

C
Stock exchange speculation

D
All of above

Solution

A company is a distinct legal entity separate from its shareholders or officers. The following are the disadvantages of a company form of organization:
1. The window dressing of the prospectus often misleads the investors who are later on exploited by the promoters.
2. Lack of secrecy.
3. Stock exchange speculation.
4. Your financial affairs are public.
Thus the correct answer is D.
Question 2
1 / -0

The official signature of the company is known as ________.

A
company logo

B
company seal

C
common seal

D
common signature

Solution

The official signature of the company is known as the company seal. It is the corporate seal used by a company for the documents that need to be executed as deeds. The company is an artificial person who acts through its Board of Directors. The Board of Directors enters into an agreement with others by indicating the company's approval through a common seal.
Thus the correct answer is C.
Question 3
1 / -0

Mr. Varun is a rich man with ample amount of working capital. He wants to go for a business of chain of $$5$$ star holds. What kind of business organization you will suggest him_________________.

A
company

B
partnership

C
sole Proprietorship

D
trust
Question 4
1 / -0

One of the disadvantages of a company form of business is ________.

A
its full legal cover

B
recognized legal entity

C
stock exchange speculation

D
none of the above
Solution
Option C is the correct answer.
Disadvantages of Joint Stock Company:
Difficulty in Formation: ADVERTISEMENTS
Reckless Speculation Encouraged
Fraudulent Management
Delay in Decision-Making
Monopolistic Powers
Excessive Regulation by Law
Conflict of Interests
Lack of Secrecy
Question 5
1 / -0

Everything is an advantages of joint ventures except __________________.

A
The costs of a new project can be split between the companies involved

B
Manufacturing costs will be divided between the firms in the venture

C
Joint ventures between firms in different countries can create new market opportunities

D
Management of the joint venture will lead to disagreements
Question 6
1 / -0

The term company is defined under which sec of the Act?

A
Sec 3(1)

B
Sec 4 (2)

C
Sec 5 (4)

D
Sec 1(3)

Solution

As per the section 3(1) of the companies act:
(1) In this Act, unless the context otherwise requires, the expressions" company"," existing company"," private company" and" public company" shall, subject to the provisions of sub- section (2), have the meanings specified below:-
(i) " company" means a company formed and registered under this Act or an existing company as defined in clause (ii);
(ii) " existing company" means a company formed and register- ed under any of the previous companies laws.

Now these provisions are dealt by the Companies Act, 2013.
Question 7
1 / -0

The following is the advantage of a company ___________________.

A
Benefits of large scale production

B
Bold management

C
Full legal cover

D
All of the above

Solution

The following are the advantage of a company:
1. This form of business is appropriate for the large scale production.
2. A company is handled by professional management.
3. A company has a separate legal entity.
Thus the correct answer is D.
Question 8
1 / -0

The form of business organisation in which there is separation of ownership and management is called _______.

A
sole partnership

B
partnership

C
company

D
all these

Solution

Option C is the correct answer.
Question 9
1 / -0

All of the following are claimed advantages of joint venture except ____________________________.

A
the costs of a new project can be split between the companies involved

B
manufacturing costs will be divided between the firms in the venture

C
joint ventures between firms in different countries can create new market opportunities

D
management of the joint venture will never lead to disagreements

Solution

Option D is the correct answer.
Question 10
1 / -0

Food co-operation of India is _______________.

A
A joint stock company

B
Company managed by department

C
Company established by special act of parliament or state assembly

D
None of the above

Solution

Food co-operation of India is a joint stock company.

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Re-Attempt Weekly Quiz Competition

Joint Stock Company Test 6

Result

Joint Stock Company Test 6

Score

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Rank

-

SHARING IS CARING

Question 1

The window dressing of the prospectus often misleads the investors who are later on exploited by the promoters

Lack of secrecy

Stock exchange speculation

All of above

Solution

Question 2

company logo

company seal

common seal

common signature

Solution

Question 3

company

partnership

sole Proprietorship

trust

Question 4

its full legal cover

recognized legal entity

stock exchange speculation

none of the above

Solution

Question 5

The costs of a new project can be split between the companies involved

Manufacturing costs will be divided between the firms in the venture

Joint ventures between firms in different countries can create new market opportunities

Management of the joint venture will lead to disagreements

Question 6

Sec 3(1)

Sec 4 (2)

Sec 5 (4)

Sec 1(3)

Solution

Question 7

Benefits of large scale production

Bold management

Full legal cover

All of the above

Solution

Question 8

sole partnership

partnership

company

all these

Solution

Question 9

the costs of a new project can be split between the companies involved

manufacturing costs will be divided between the firms in the venture

joint ventures between firms in different countries can create new market opportunities

management of the joint venture will never lead to disagreements

Solution

Question 10

A joint stock company

Company managed by department

Company established by special act of parliament or state assembly

None of the above

Solution

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