Commercial Applications
Statement I : A public company is required to publish and file its accounts.
Statement II : It is very easy to maintain business secrets.
- Only I is correct
- Only II is correct
- Both I and II are correct
- Both I and II are wrong
Answer
Only I is correct
Reason — Statement I is correct because a public company is required to publish and file its accounts as per legal requirements. Statement II is wrong because it is very difficult to maintain business secrets in a public company. Since the company has to disclose its accounts and other information to the public, regulators and shareholders, lack of secrecy is one of the main disadvantages of a joint stock company.
Related Questions
Statement I : A company enjoys a good reputation and prestige in the business world.
Statement II : The membership of a public company is large and its ownership is generally diffused.
- Only I is correct
- Only II is correct
- Both I and II are correct
- Both I and II are wrong
Statement I : Red tape and bureaucracy do not permit quick decisions and prompt action.
Statement II : The management of a company is supposed to be carried on according to the collective will of its members.
- Only I is correct
- Only II is correct
- Both I and II are wrong
- Both I and II are correct
Types of companies are :
- Registered Companies
- Chartered Companies
- Statutory Companies
- All of these
The number of members in a private company are :
- Minimum = 5, Maximum = 100
- Minimum = 2, Maximum = 200
- Minimum = 7, Maximum = No limit
- None of these