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MCQ’S TEST
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CLASS 11 BUSINESS STUDIES LESSON 3 PRIVATE PUBLIC AND GLOBAL ORGANISATION OBJECTIVE QUESTIONS MCQ’S TEST
1. A government company is any company in which the paid-up capital held by the government is not less than ________.
25 percent
45 percent
51 percent
49 percent
Answer - C
Explanation - A government company means any company in which not less than 51 percent of the paid-up capital is held by the central government.
2. Centralised control in MNC's implies control exercised by:
Parliament
Headquarters
Subsidiaries
Branches
Answer - B
Explanation - Centralized control in the context of MNC's refers to the control exercised by the corporation's headquarters.
3. PSE's are organisations owned by:
Private entrepreneurs
Joint Hindu family
Foreign Companies
Government
Answer - D
Explanation - Public Sector Undertaking (PSU) or a Public Sector Enterprise (PSE) these companies are owned by the union government of India, or one of the many state or territorial governments, or both.
4. Reconstruction of sick public sector units is taken up by:
BIFR
NRF
MOFA
MoU
Answer - A
Explanation - Reconstruction of sick public sector units is taken up by BFIR (Board for Industrial and Financial Reconstruction).
5. Disinvestments of PSE's implies:
Sale of equity shares
Buying shares PSEs
Investing in new areas
Closing down private sector/public operations
Answer - A
Explanation - Disinvestment involves the sale of equity shares to the private sector and the public.
6. Indian economy consists of ________.
only government business
private and government owned business
none of these
only private business
Answer - B
Explanation - The Indian economy consists of both privately owned and government-owned business enterprises, it is known as a mixed economy.
7. Indian economy is ________.
fully developed economy
closed economy
private economy
mixed economy
Answer - D
Explanation - The Indian economy consists of both privately owned and government-owned business enterprises, it is known as a mixed economy.
8. ________ consists of business owned by individuals or a group of individuals.
Private sector
Public sector
None of these
Service sector
Answer - A
Explanation - The private sector encompasses all for-profit businesses that are owned or operated by an individual or group of individuals.
9. ________ consists of various organisations owned and managed by the government.
Manufacturing sector
Public sector
Service sector
Private sector
Answer - B
Explanation - The public sector consists of various organisations owned and managed by the government.
10. In the industrial policy resolution ________ the Government of India has specified the approach towards the development of the industrial sector.
1948
1956
2009
1932
Answer - A
Explanation - The Government of India declared its first Industrial Policy on 6th April 1948.
11. Which of the following comes under the public sector?
All of these
Departmental undertakings
Statutory corporation
Government companies
Answer - A
Explanation - The different types of public sector enterprises are as follows: Departmental undertakings, Statutory corporations, a Government company.
12. Which of the following comes under the private sector?
All of these
Sole Proprietorship
Joint Hindu Family
Partnership
Answer - A
Explanation - There are various types of business in the private sectors, like Sole Proprietor, Partnership, Limited Companies, Cooperatives, and Joint Hindu Family.
13. ________ not been constituted as autonomous or independent institutions and as much are not independent legal entities.
Indian Institute of foreign trade
Departmental undertakings
All India Ratio
MHRD
Answer - B
Explanation - Departmental undertakings have not been constituted as autonomous or independent institutions and as such are not independent legal entities. Examples of these undertakings are railways, posts, and telegraph departments.
14. Which of the following is an example of Departmental undertakings?
Air India
All of these
Railway
Post and Telegraph Department
Answer - B
Explanation - Examples of Departmental undertakings are railways, post & telegraph department, and Air India.
15. ________ are set up under an Act of parliament and are governed by the provisions of the Act.
Private companies
Limited companies
Partnership
Statutory corporations
Answer - D
Explanation - Statutory corporations are set up under an Act of parliament and are governed by the provisions of the Act.
16. Statutory corporations are ________.
private enterprises
public enterprises
sole proprietorship
none of these
Answer - B
Explanation - Statutory corporations are public enterprises brought into existence by a special act of the parliament.
17. Minimum number of members to form a private company is:
7
5
3
2
Answer - D
Explanation - Minimum number of members to form a private company is two.
18. Minimum number of members to form a public company is:
5
21
12
7
Answer - D
Explanation - A minimum number of members to form a public company is 7.
19. Application for approval of name of a company is to be made to:
SEBI
Government of India
Registrar of Companies
Government of the State in which Company is to be registered
Answer - C
Explanation - Before commencing the incorporation of a company, the directors of the company must acquire the proposed name must be approved by the Registrar of Companies in the Ministry of Corporate Affairs.
20. A proposed name of the Company is considered undesirable if:
It resembles closely with an existing company the name of an existing company.
It is an emblem of the Government.
It is identical with the name.
Only C
All of these
Only B
Only A
Answer - B
Explanation - A proposed name of the Company is considered undesirable if it resembles closely with an existing company the name of an existing company, it is an emblem of Government and it is identical with the name.
21. A prospectus is issued by:
a public company seeking investment from the public
None of these
a private company
a public enterprise
Answer - A
Explanation - A prospectus is a legal document issued by companies that are offering securities for sale.
22. Stages in the formation of a public company are in the following order:
Promotion, Incorporation, capital subscription, commencement of business
Incorporation, Capital of Business, Capital Subscription Commencement of Business, Promotion
Promotion, Commencement of business
Capital Subscription, Promotion, Incorporation, Commencement of Business
D is correct
C is correct
A is correct
B is correct
Answer - C
Explanation - The formalities of the formation of a company can be divided into four distinct stages, which are:
Promotion
Incorporation
Subscription of capital
Commencement of business.
23. Preliminary Contracts are signed:
after incorporation
after incorporation but before the capital subscription
before the incorporation
after the commencement of business
Answer - C
Explanation - Preliminary contracts are contracts entered into by the promoters on behalf of the company before its incorporation with third parties.
24. Preliminary Contracts are:
binding on the promoters
None of these
binding on the company
not binding on the company
Answer - D
Explanation - Preliminary contracts are contracts entered into by the promoters on behalf of the company before its incorporation with third parties. Such contracts are legally not binding upon the company even after it comes into existence.
25. When business agrees to join together for a common purpose and mutual benefit, it gives rise to a ________.
joint venture
consignment
public company
cooperative society
Answer - A
Explanation - A joint venture is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.
26. Expand MOFA
Multi owned financial Authority
Majority owned foreign affiliates
Memorandum of financial association
None of these
Answer - B
Explanation - Majority-owned foreign affiliate (MOFA). A foreign affiliate in which the combined ownership of all U.S. parents exceeds 50 percent.
27. Expand MNCs:
Multi National Companies
Multi National Corporations
Multi National Coordination
Multi National Cooperatives
Answer - B
Explanation - A Multi-National corporation (MNC) is usually a large corporation incorporated in one country which produces or sells goods or services in various countries.
28. Expand MoU:
Memorandum of Understanding
Memorandum of Association United
Memorandum original Universal
Memorandum of Unity
Answer - A
Explanation - A memorandum of understanding (MoU) is a formal agreement between two or more parties.
29. In the 1956 resolution on industrial policy ________ industries were reserved for the public sector.
35
12
21
17
Answer - D
Explanation - In the 1956 resolution on industrial policy 17 industries were reserved for the public sector.
30. In 2001 only ________ industries were reserved exclusively for the public sector.
9
3
12
5
Answer - B
Explanation - At present, the number of industries kept reserved for the government sector is three.