WorksheetsQuiz on Joint Stock Companies
Total questions: 32
Worksheet time: 16mins
A joint stock company is owned by
One person
Partners
Shareholders
Government
The capital of a joint stock company is divided into
Profits
Shares
Loans
Assets
Which feature allows a joint stock company to continue even if a shareholder dies?
Limited liability
Separate legal entity
Perpetual succession
Transfer of shares
In a joint stock company, the liability of shareholders is
Unlimited
Equal to company losses
Limited to the value of shares
Paid from personal property
Which of the following is a feature of a private company?
Shares are freely transferable
Minimum 7 members
Restriction on transfer of shares
Listed on stock exchange
The minimum number of members in a private company is
1
2
5
7
A public company can issue shares to
Only family members
Government only
Selected individuals
General public
The minimum number of members required to form a public company is
2
5
7
10
A government company is one in which at least ____% of the share capital is held by the government.
49%
51%
75%
100%
Which of the following is an example of a government company in India?
Reliance Industries
Tata Motors
Indian Oil Corporation
Infosys
A multinational company operates in
One city only
One country only
Two or more countries
Only developing countries
Which of the following is a multinational company?
Indian Railways
State Bank of India
Coca-Cola
Life Insurance Corporation
A shareholder loses the share certificate of a company. The company still exists and continues its work. Which feature of a joint stock company is highlighted here?
Transferability of shares
Limited liability
Separate legal entity
Common seal
Ravi invests in a company but is not involved in its daily management. This is possible because
shareholders manage the company
ownership and management are separate
liability is unlimited
shares cannot be transferred
If a company suffers huge losses, the maximum loss a shareholder can face is
personal property
total company loss
value of shares owned
future profits
Which situation best shows perpetual succession?
Company shuts down after losses
Company continues despite change in members
Shares are sold in the market
Company is managed by directors
Why is a joint stock company suitable for large-scale business?
Easy dissolution
Limited number of members
Large capital through shares
Government ownership
A private company wants to protect control among a small group. Which rule helps achieve this?
Free transfer of shares
Restriction on transfer of shares
Public issue of shares
Listing on stock exchange
Which condition would force a private company to convert into a public company?
Increase in profits
More than 200 members
Losses for two years
Government takeover
A company invites the public to buy its shares and gets listed on a stock exchange. It is most likely a
Private company
Partnership firm
Public company
Government department
Why do public companies require stricter legal regulations?
They earn more profit
They employ more workers
They raise money from the public
They are government-owned
Which factor best distinguishes a government company from a public company?
Number of employees
Area of operation
Ownership of share capital
Nature of products
The government holds 70% shares in a company, while the rest are with private investors. This company is classified as a
Private company
Public company
Government company
Multinational company
Why are government companies often formed?
To reduce competition
To earn foreign exchange
To provide public welfare along with profit
To avoid taxes
Which challenge is most commonly faced by government companies?
Lack of capital
Excessive competition
Bureaucratic control
Limited market
A company manufactures goods in India, sells them globally, and has offices in multiple countries. It is best described as a
Public company
Government company
Multinational company
Private company
Which advantage of multinational companies helps developing countries the most?
High profit transfer
Monopoly power
Employment and technology transfer
Cultural dominance
Which concern is often raised against multinational companies?
Low-quality products
Excessive local control
Exploitation of local resources
Limited market reach
If a company wants both public trust and government support, which form would be most suitable?
Private company
Partnership firm
Government company
Sole proprietorship
Which feature of a joint stock company encourages small investors to invest?
Unlimited liability
High risk
Limited liability
Direct management
Why can multinational companies produce goods at a lower cost?
Limited production
Government ownership
Large-scale production and global resources
Restricted markets
A company wants to expand globally but retain control within a few people. Which combination best suits this goal?
Public multinational company
Private multinational company
Government multinational company
Public government company
