Saturday, 23 January 2021

CH 8 -JOINT STOCK COMPANY

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L-8 JOINT STOCK COMPANY

 

A. One Word or One Line Questions

 

Q. 1. Under which act companies are governed?

Ans. Companies Act, 2013.

 

Q. 2. Which form of organisation is called an artificial person created by lawy?

Ans. Joint Stock Company.

 

Q. 3. How is a company an artificial person?

Ans. A company is created by law and has separate legal entity.

 

Q. 4. Is it compulsory for a company to get registered?

Ans. Yes.

 

Q. 5. Name a form of organisation where members can transfer their shares without consent from anyone .

Ans. Joint Stock Company

 

Q. 6. Give the name s of Indian Statutory Companies.

Ans. Reserve Bank of India, Life Insurance Corporation of India, Unit Trust of India, Indian Airline etc.

 

Q. 7. Indian Oil Corporation is an example of which type of company?

Ans. Government Company.

 

Q. 8. Who contribute s capital in joint stock company?

Ans. Shareholders.

 

Q. 9. What can be the maximum number of members in a public company?

Ans. No limit.

 

Q. 10. How many minimum members can form of a public company?

Ans. Seven Members.

 

Q. 11. How much minimum paid capital is required for a public company?

Ans. Rs.5 lakhs.

 

Q. 12. Who manage s the Joint Stock Company?

Ans. Board of Directors.

 

Q. 13. What is the minimum and maximum number of members of a private    company?

Ans. A minimum of two members are required and the maximum number is 200.

 

Q. 14. Name the type of company where members are restricted to transfer their   shares.

Ans. Private company.

 

Q. 15. How much minimum paid up capital is required for a private company?

Ans. Minimum of Rs.1 lakh paid up capital.

 

Q. 16. What is the minimum number of directors of a private and public company?

Ans. Private company; 2 Public company: 3

 

Q. 17. What is minimum quorum of membe rs at tending meeting of a private and a public company?

Ans.  Private company: 2 members; Public company: 5 members

 

Q. 18. Define One Person Company.

Ans. One person company is a company which has only one peron as member.

 

Q. 19. How much maximum paid up share capital of one person company.

Ans. Not more than Rs.50 Lakhs.

 

Q. 20. What is the limit of annual turnover of one person company?

Ans. Annual turnover should not exceed Rs.2 crore.

 

B. Fill in the blanks

 

1. A company is an......... person created by..........

2. In India, Joint Stock Companies are governed by..........

3. A Joint Stock Company works on ......... basis.

4. ......... company have no need to issue a prospectus or to file a statement in lieu of prospectus with the registrar.

5. Shareholder s of company is free to dispose of their.................

6. Maximum number of member s of a private company is................

 Ans. 1. Artificial, law, 2. Companies Act, 2013, 3.democratic, 4. Private, 5.shares, 6. 200.

 

C. True or False

 

1. A company enjoys a separate legal entity from its member s.

2. Shareholders of a public company is free to dispose of their shares.

3. A Joint Stock companies works on democratic basis.

4. In India, Joint Stock Companies are governed by Companies act, 2008.

5. Minimum number of member s of private company is ten.

6. The name of the Private company end with the words. ‘Public Limited’.

7. Joint Stock Company is managed and controlled by Board of Directors.

Ans. 1. True, 2. True, 3. True, 4. False, 5. False, 6. False, 7. True

 

D. MCQ

 

1. A public company must have at least following number of member s.

(a) Six

(b) Two

(c) Seven

(d) Nine

 

2. The maximum number of member s in case of private company.

(a) Fifty one

(b) Fifty two

(c) Fifty five

(d) None of the above

 

3. The number of member s require to complete a quorum of a private company.

(a) Three

(b) Four

(c) Two

(d) Five

 

4. Which one of the following company can issue share warrants?

(a) Public Company

(b) Private Company

(c) Both (a) and (b)

(d) None of the above

 

5. Which one of the following is not a limit at ion of Joint Stock Company?

(a) Difficulty in format ion

(b) Lack of quick decisions

(c) Democratic set up

(d) Excessive stat e regulations

 

Ans .1. (c), 2. (d), 3. (c), 4. (a),5. (c)