This set of Industrial Management Multiple Choice Questions & Answers (MCQs) focuses on “Joint Stock Companies”.
1. Which of the following is associated with shareholders?
a) Single ownership
b) Partnership
c) Joint Stock Company
d) Public ltd. Joint company
View Answer
Explanation: Single ownership involves only one individual. The partnership involves more than one or group of individuals of up to 20 (max) members who are known as partners. Joint Stock Company can be formed by a team of more than 20 individuals who are known as shareholders as the capital is divided in the form of shares.
2. What is the maximum size of the group allowed to form partners in the partnership organisation?
a) Up to 10
b) Below 15
c) Up to 20
d) Below 5
View Answer
Explanation: Partnership involves more than one or group of individuals of up to 20 (max) members who are known as partners.
3. Which of the following is an example of a public limited company?
a) Infosys Ltd.
b) Marriot Hotels Pvt Ltd.
c) Microsoft Corporation (India) Private Ltd.
d) Sanfoundry (one founder)
View Answer
Explanation: Infosys Ltd. is a public limited company. Marriot Hotels Pvt Ltd. and Microsoft Corporation (India) Private Ltd. are Private limited companies. All these three companies’ assets are in the form of shares. Public limited company shares are available for everyone to buy whereas there are restrictions on the shares of private limited companies. Sanfoundry is a single ownership business organisation as it has only one founder.
4. What is the minimum size of the group (shareholders) required to form a joint-stock public Ltd company?
a) Ten
b) Seven
c) Two
d) Three
View Answer
Explanation: For a joint-stock public limited company, the minimum number of shareholders should be at least seven. There is no limit on the maximum size allowed.
5. Which of the following business organisations should only have “Limited” added at the end of its name?
a) Single ownership
b) Partnership
c) Private Ltd Joint Stock Company
d) Public Ltd Joint Stock Company
View Answer
Explanation: Public Ltd Joint Stock Company should only have “Limited” added at the end of its name. Shares of a public limited company are transferable.
6. Match the following.
p) Public Ltd Company i) Restriction on transfer of shares q) Private Ltd Company ii) No limit on no of members(shareholders) r) Joint Stock Companies iii) Association of individuals
a) p – ii, q – i, r – iii
b) p – ii, q – iii, r – i
c) p – iii, q – i, r – ii
d) p – i, q – ii, r – iii
View Answer
Explanation: Joint-stock companies are of two types:
i. Public Ltd company
ii. Private Ltd Company
A public Ltd company has no limit on the size of members to form as shareholders of the company.
A Private Ltd company has restrictions on the transfers of shares. A joint-stock company is an association of individuals formed to invest capital for making profits and agree to divide the capital in forms of shares.
7. What is the maximum size of the group (shareholders) allowed to form a joint-stock private Ltd company?
a) Ten
b) Seven
c) Two
d) Fifty
View Answer
Explanation: For a joint-stock private limited company, the maximum number of shareholders should be at most fifty while the minimum is at least two.
8. Which of the following business organisations must have “Private Limited” added at the end of its name?
a) Single ownership
b) Partnership
c) Private Ltd Joint Stock Company
d) Public Ltd Joint Stock Company
View Answer
Explanation: Private Ltd Joint Stock Company must have “Private Limited” added at the end of its name. Shares of a Private limited company are not transferable to everyone and there are restrictions imposed on the transfer of shares of a private Ltd company.
9. Which of the following is an example of a private limited company?
a) Infosys Ltd.
b) Wipro Ltd.
c) Microsoft Corporation (India) Private Ltd.
d) Sanfoundry (one founder)
View Answer
Explanation: Infosys Ltd. and Wipro Ltd. are public limited companies. Microsoft Corporation (India) Private Ltd. is a private limited company. All these three companies’ assets are in the form of shares. Public limited company shares are available for everyone to buy whereas there are restrictions on the shares of private limited companies. Sanfoundry is a single ownership business organisation as it is founded by one person.
10. Match the following.
p) Public Ltd Company i) Shares subscription to the public is not allowed q) Private Ltd Company ii) Shares subscription to the public is allowed r) Joint Stock Companies iii) Limited liability
a) p – ii, q – i, r – iii
b) p – ii, q – iii, r – i
c) p – iii, q – i, r – ii
d) p – i, q – ii, r – iii
View Answer
Explanation: Public Ltd Company allows its shares for subscription to the general public whereas Private Ltd Company does not allow its shares to be accessible to the general public for subscription. The joint-stock companies offer limited liability to all its shareholders.
Sanfoundry Global Education & Learning Series – Industrial Management.
To practice all areas of Industrial Management, here is complete set of 1000+ Multiple Choice Questions and Answers.
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