Commercial Applications
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
Answer
Both I and II are correct
Reason — Both statements are correct. Red tape and bureaucracy in a company do not permit quick decisions and prompt action because there is little scope for personal initiative and a sense of responsibility. Paid employees tend to play safe and shift responsibility. Also, the management of a company is supposed to be carried on according to the collective will of its members, since members elect their representatives (directors) to manage the company's affairs on behalf of the members.
Related Questions
The merit of a joint company is
- Continuity of Existence
- Capital Formation
- Limited Liability
- All of these
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 : 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
Types of companies are :
- Registered Companies
- Chartered Companies
- Statutory Companies
- All of these