Multiple Choice Questions on Joint stock company:
1. What is Joint Stock Company?
(1) A joint stock company is referred to as the form of business organisation where the company's stock can be purchased and sold by the shareholders of the company.
(2) A joint-stock company is a business owned by its investors, with each investor owning a share based on the amount of stock purchased.
(3) Both 1 and 2
(4) None of these
Answer: 3
2. Why joint stock company is also called______
(1) Artificial person
(2) Synthetic Person
(3) Natural Person
(4) None of these
Answer: 1
3. A Joint stock company is governed by______
(1) Companies Act 2013
(2) Companies Act 2017
(3) Companies Act 2011
(4) Companies Act 2014
Answer: 1
4. Which is smallest part of share capital of joint stock company?
(1) equity shares
(2) preference shares.
(3) Both
(4) Can't Say
Answer: 3
5. What is the characteristics of a joint stock company?
(1) Independent legal entity.
(2) Limited liability.
(3) Common seal.
(4) All of these
Answer: 4
6. The company is managed by the group of persons known as________
(1) Board of directors
(2) Group of member
(3) Team of shareholders
(4) None of the above
Answer: 1
7. What are the types of joint stock company?
(1) Chartered company
(2) Statutory Company
(3) Registered Company
(4) All of these
Answer: 4
8. Which of the following is a joint stock company ?
(1) Tata Motors Limited.
(2) Reliance Industries Limited
(3) State Bank of India
(4) All of these
Answer: 4
9. What is the advantages of joint stock companies_______
(1) Liability is Limited
(2) Since the Shares are Transferable
(3) Companies are Run by a Board of Directors
(4) All of these
Answer: 4
10. ---------------- audit is compulsory for joint stock companies
(1) Statutory
(2) Final
(3) Continuous
(4) none
Answer: 1
11. Which of the following is disadvantage of Joint-Stock Company_______
(1) A very long gestation period since a lot of regulatory red tape has to be crossed.
(2) Such firms have a complete lack of secrecy because their financial records must be provided to registrars under the Companies Act (Amended), 2013.
(3) There are latent chances of conflict of interest between a firm’s shareholders, promoters and the BoD.
(4) All of these
Answer: 4
12. The ownership capital of Joint Stock Companies is dividend in its --------------
(1) Equity shares
(2) Debentures
(3) Bonds
(4) Debentures and preference shares
Answer: 4
13. In the case of joint stock company, goodwill is sown on the asset side under the head
(1) Fixed asset
(2) investment
(3) current asset
(4) miscellaneous expenditure
Answer: 1