MCQ on Joint Stock Company Pdf - YB Study -->

MCQ on Joint Stock Company Pdf

Joint Stock Company Multiple Choice Questions with Answers Pdf

1. What is Joint Stock Company?

(1) A joint stock company is referred to as the form of business organisation where the company's stock can be purchased and sold by the shareholders of the company. 

(2) A joint-stock company is a business owned by its investors, with each investor owning a share based on the amount of stock purchased.

(3) Both 1 and 2

(4) None of these

Answer: 3


2. Why joint stock company is also called______

(1) Artificial person

(2) Synthetic Person

(3) Natural Person

(4) None of these 

Answer: 1


3. A company is formed by_________

(1) Government

(2) Directors

(3) Promoters

(4) Owners

Answer: 3


4. A Joint stock company is governed by______

(1) Companies Act 2013

(2) Companies Act 2017

(3) Companies Act 2011

(4) Companies Act 2014

Answer: 1


5. Which audit is compulsory for joint stock companies?

(1) statutory Audit.

(2) Company Audit

(3) Job Audit

(4) Stock Audit

Answer: 1


6. Share premium money can be used for:

(1) Issue of fully paid bonus shares

(2) Payment of debentures

(3) Payment of dividend

(4) Writing of good will

Answer: 1


7. Which is smallest part of share capital of joint stock company?

(1) equity shares 

(2) preference shares.

(3) Both 

(4) Can't Say

Answer: 3


8. What are the features of joint stock company?

(1) Separate ownership and management.

(2) Transferability of shares.

(3) Perpetual existence.

(4) All of these 

Answer: 4


9. What is the characteristics of a joint stock company?

(1) Independent legal entity.

(2) Limited liability.

(3) Common seal.

(4) All of these 

Answer: 4


10. The company is managed by the group of persons known as:

(1) Board of directors

(2) Group of member

(3) Team of shareholders

(4) None of the above

Answer: 1


11. Who is promoter?

(1) A promoter is an individual or organization that helps raise money for some investment activity. 

(2) Promoters often tout penny stocks, an area where false promises and misrepresentation of the company or its prospects have become commonplace.

(3) Both 

(4) None of these 

Answer: 3


12. What are the types of joint stock company?

(1) Chartered company

(2) Statutory Company

(3) Registered Company

(4) All of these 

Answer: 4


13. Which of the following is a joint stock company ?

(1) Tata Motors Limited.

(2) Reliance Industries Limited

(3) State Bank of India

(4) All of these 

Answer: 4


14. Which of the following is not a joint stock company_____

(1) Jindal Steel & Power Ltd.

(2) Grasim Industries Ltd.

(3) Oil & Natural Gas Ltd. (ONGC)

(4) LIC

Answer: 4


15. What is the advantages of joint stock companies_______

(1) Liability is Limited

(2) Since the Shares are Transferable 

(3) Companies are Run by a Board of Directors

(4) All of these 

Answer: 4

16. ---------------- audit is compulsory for joint stock companies

(1) Statutory

(2) Final

(3) Continuous

(4) none

Answer: 1


17. Which of the following is disadvantage of Joint-Stock Company_______

(1) A very long gestation period since a lot of regulatory red tape has to be crossed.

(2) Such firms have a complete lack of secrecy because their financial records must be provided to registrars under the Companies Act (Amended), 2013.

(3) There are latent chances of conflict of interest between a firm’s shareholders, promoters and the BoD.

(4) All of these 

Answer: 4


18. The ownership capital of Joint Stock Companies is dividend in its --------------

(1) Equity shares

(2) Debentures

(3) Bonds

(4) Debentures and preference shares

Answer: 4


19. In the case of joint stock companies , the assets and liabilities in B/S are arranged in the order of__________

(1) serial number

(2) performance

(3) availability

(4) none of these

Answer: 2


20. In the case of joint stock company, goodwill is sown on the asset side under the head________

(1) Fixed asset

(2) investment

(3) current asset

(4) miscellaneous expenditure

Answer: 1


21. National stock exchange was set up a joint stock company by all indian financial institutionand banks on November 27 ____.

(1) 1991.

(2) 1992.

(3) 1993.

(4) 1994.

Answer: 2

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