Business And Commerce - Study Mode

[#571] The minimum number of members in a private limited company is _________.
Correct Answer

(A) 2

Explanation

Solution: The minimum number of members in a private limited company is 2.

[#572] A Joint stock company is governed by _______.
Correct Answer

(D) Companies Act 2013

Explanation

Solution: A Joint stock company is governed by Companies Act 2013. A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders.

[#573] Memorandum of association of a firm contains _______.
Correct Answer

(B) rules regarding the constitution and activities of the company

Explanation

Solution: Memorandum of association of a firm contains rules regarding the constitution and activities of the company. Memorandum of Association (MOA) is a legal document which specifies the scope of business activities of the company and information about shareholding of the company. The MoA is a document prepared for the Company registration procedure.

[#574] The liability of shareholders of a public company is limited to the _________.
Correct Answer

(C) paid up value of shares

Explanation

Solution: The liability of shareholders of a public company is limited to the paid up value of shares. "Limited by shares" means that the liability of the shareholders to creditors of the company is limited to the capital originally invested, i.e. the paid up value of the shares and any premium paid in return for the issue of the shares by the company.

[#575] A Government company is one in which ________.
Correct Answer

(D) all of above

Explanation

Solution: A “Government company” is defined under Section 2(45) of the Companies Act, 2013 as “any company in which not less than 51% of the paid-up share capital is held by the Central Government, or by any State Government or Governments, or partly by the Central Government and partly by one or more State Governments, and includes a company which is a subsidiary company of such a Government company”.
Thus, the cardinal feature of a government company is not less than 51% ownership by Central/state government, either individually or jointly.