Commercial Applications
Types of companies are :
- Registered Companies
- Chartered Companies
- Statutory Companies
- All of these
Answer
All of these
Reason — Joint stock companies may be classified into three main categories — chartered companies (established by Royal Charter, e.g., British East India Company), statutory companies (established by a Special Act of Parliament or State Legislature, e.g., Reserve Bank of India), and registered companies (established by registration under the Companies Act, e.g., Reliance Industries Ltd.). Registered companies are the most common type in India.
Related Questions
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
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
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
Why is the principle of limited liability important for shareholders in a joint stock company?
- It allows shareholders to transfer shares freely.
- It restricts the financial loss of shareholders to the unpaid value of shares.
- It ensures shareholders participate in daily management.
- It makes shareholders responsible for company debts.