Forms of Business Organizations - Company

'A company can enter into contracts and own properties in its name.' Which feature of Joint Stock Company is reflected here?

• Artificial person

• Perpetual succession

• Separate Legal entity

• Control

2) Which type of company can start business after obtaining 'Certificate of Incorporation'?

• Private Limited company

• Public Limited company

• One person company

• None

True or False:

The ownership and management is in two different hand in case of Joint stock company.

• True

• False

The Board of directors of a joint stock company is elected by:

• General public

• Government bodies

• Shareholders

• Employees

5) The capital of a company is divided into number of parts each one of which is called:

• Dividend

• Profit

• Interest

• Share

Minimum number of members for a private limited company is ______ and for a public limited company is _______.

• 2, 7

• 7, 2

• 2, 10

• 7, 10

A prospectus is issued by :

• A private company

• A public company seeking investment from public

• A public enterprise

• A public company

True or False:

It is necessary for every company to be incorporated.

• True

• False

True or False:

If a company suffers heavy issues and its assets are not enough to pay off its liabilities, the balance can be recovered from the private assets of its members.

• True

• False

In which type of company there is no restriction on the transfer of shares?

• One person company

• Private company

• Public company

• None