Lesson 5 - Company Form of Business Organisation

How is a joint stock company different from other types of organizations?

• It does not have a separate legal existence

• Its members do not contribute money

• It cannot be dissolved by law

• It has a separate legal existence

What are members of a joint stock company known as?

• Stakeholders

• Partners

• Shareholders

• Investors

What does "Separate Legal Entity" mean for a company?

• The company is not recognized by law

• The company exists independently of its members

• The company is run by its shareholders

• The company has no legal status

What is the smallest amount of money a private company must have as share capital?

• Ten thousand rupees

• Fifty thousand rupees

• One lakh rupees

• Five lakh rupees

Who can be the sole member of a One Person Company (OPC)?

• Any individual

• Any non-resident

• Only a foreign citizen

• Only an Indian citizen and resident

Which company is NOT a public company among the following?

• Bajaj Holdings

• Hindustan Unilever Ltd.

• Reliance Industries Limited

• Infosys Technologies

What are the merits of a Joint Stock Company?

• Limited Liability

• Liquidity

• Tax Benefits

• All of the above

What are the limitations of a Joint Stock Company?

(you can choose more than one option)

• It is difficult to form

• There is excessive government control

• Risk involved is high

• Lack of secrecy

At which stage of company formation is the company officially registered with the Registrar of Companies and issued a Certificate of Incorporation?

• Promotion stage

• Registration/Incorporation stage

• Capital Subscription stage

• Commencement of Business stage

What impact does the expansion of industrial and trading activities by MNCs (Multinational Companies) have on host countries?

• Decreased standard of living

• Limited employment opportunities

• Creation of employment opportunities

• Reduced foreign exchange reserves