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Business and Commerce MCQ Questions and Solutions with Explanations | Commerce

Business and Commerce MCQ Questions and answers with easy and logical explanations. Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Business and Commerce MCQ is important for exams like B.COM, M.COM, BBA, BBM, CA, CS, CMA, CPA, CFA, UPSC, NET, Banking and other commerce department exam. Page-6 section-2

Each section contains 100 MCQs on Business and Commerce .
51
The minimum number of members for registration of a co-operative society is _________.
Discuss
Answer & Solution
Answer: Option C
Solution:
A minimum of ten members are required to form a cooperative society. The Co operative societies Act do not specify the maximum number of members for any co-operative society.
52
Co-operative and public companies are similar in respect of __________.
Discuss
Answer & Solution
Answer: Option C
Solution:
Co-operative and public companies are similar in respect of the maximum number of members.
53
The limit for maximum number of members in a public company is restricted to _________.
Discuss
Answer & Solution
Answer: Option D
Solution:
The limit for maximum number of members in a public company is Unlimited.
54
A private company should have at least __________.
Discuss
Answer & Solution
Answer: Option A
Solution:
A private company should have at least 2 members.
55
A partnership firm cannot raise funds through _________.
Discuss
Answer & Solution
Answer: Option C
Solution:
A partnership firm cannot raise funds through Debentures. A partnership passes through its taxable income (or loss) to its investors, thereby avoiding double taxation and allowing the partnership the option to retain working capital for growth.
56
Which of the following sources is not use for medium term financing?
Discuss
Answer & Solution
Answer: Option A
Solution:
Issue of equity shares is not use for medium term financing. Financing is the process of providing funds for business activities, making purchases or investing. Financial institutions such as banks are in the business of providing capital to businesses, consumers, and investors to help them achieve their goals.
57
Which of the following securities proves a burden on finances of the company, when company is not earning profits?
Discuss
Answer & Solution
Answer: Option D
Solution:
Debentures proves a burden on finances of the company, when company is not earning profits. Debenture put a permanent burden on the earnings of a company. Therefore, there is a greater risk when the earnings of the company fluctuate.
58
Preference shares are those which carry preferential right in respect of _________.
Discuss
Answer & Solution
Answer: Option C
Solution:
Preference shares are those which carry preferential right in respect of both dividend and repayment of capital. Preference shares, more commonly referred to as preferred stock, are shares of a company's stock with dividends that are paid out to shareholders before common stock dividends are issued.
59
A project, which may not add to the existing profits, should be financed by __________.
Discuss
Answer & Solution
Answer: Option B
Solution:
A project, which may not add to the existing profits, should be financed by preference share capital. Preference shares are shares in a company that are owned by people who have the right to receive part of the company's profits before the holders of ordinary shares are paid. They also have the right to have their capital repaid if the company fails and has to close.
60
The management of the company is entrusted to __________.
Discuss
Answer & Solution
Answer: Option D
Solution:
The management of the company is entrusted to Board of Directors. A “Managing Director” means a Director who, by virtue of Articles of Association of a Company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial powers of management of affairs of the company.