Finance quiz -2 Types of companies

What is a private company?

• A company held under private ownership whose shares trade on stock exchanges.

• A company held under private ownership that may issue shares but does not trade them on stock exchanges.

• A company that is owned by the government.

• A company with unlimited members.

What is a public company?

• A company owned by a single individual.

• A corporation whose ownership is distributed among the general public shareholders via the free trade of shares in the stock exchanges.

• A company with restrictions on share transfers.

• A company that does not issue shares.

What happens when a public company changes to a private company?

• The company issues new shares to the public.

• The company is delisted from its associated stock exchanges and returns to private operations by buying back all outstanding shares from current shareholders.

• The company becomes a government company.

• The company merges with another public company.

Which of the following is NOT a difference between a public and a private company?

• Minimum capital required.

• Number of minimum and maximum members.

• The ability to freely transfer shares.

• The requirement to get certification of commencement of business.

What is a government company?

• A company with 100% private ownership.

• A company where the government holds 51% or more of the shares.

• A company formed under a special act of parliament.

• A company registered in one country but doing business in another.

Which of the following is an example of a statutory company?

• BHEL

• ONGC

• SEBI

• Genpact

What defines a foreign company?

• A company owned by a single person.

• A company registered in one country but doing business in another.

• A company with shares listed in the stock market.

• A company with shares not listed in the stock market.

What is a single person company?

• A company with two or more shareholders.

• A company owned and operated by one person as per the 2013 companies' amendment act.

• A company with shares traded on the stock market.

• A company registered under a special act.

What is a registered company?

• A company registered under the companies act 1956.

• A company not registered under any act.

• A company doing business in foreign countries.

• A company owned by the government.

What is an unregistered company?

• A company registered under the companies act 1956.

• A company not registered under the companies act 1956.

• A company listed in the stock market.

• A company with government ownership.