11th Commerce - Book Back Answers - Chapter 6 - English Medium Gudies

 

  

 

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Tamil Nadu Board 11th Standard Commerce - Chapter 6: Book Back Answers and Solutions

    This post covers the book back answers and solutions for Chapter 6 – Commerce from the Tamil Nadu State Board 11th Standard Commerce textbook. These detailed answers have been carefully prepared by our expert teachers at KalviTips.com.

    We have explained each answer in a simple, easy-to-understand format, highlighting important points step by step under the relevant subtopics. Students are advised to read and memorize these subtopics thoroughly. Once you understand the main concepts, you’ll be able to connect other related points with real-life examples and confidently present them in your tests and exams.

    By going through this material, you’ll gain a strong understanding of Commerce  Chapter 6 along with the corresponding book back questions and answers (PDF format).

Question Types Covered:

• 1 Mark Questions: Choose the correct answer, Fill in the blanks, Identify the correct statement, Match the following 
• 2 Mark Questions: Answer briefly 
• 3, 4, and 5 Mark Questions: Answer in detail

All answers are presented in a clear and student-friendly manner, focusing on key points to help you score full marks.

All the best, Class 11 students! Prepare well and aim for top scores. Thank you!

Chapter 6: JOINT STOCK COMPANY

I. Choose the correct answer

1.The relationship between outsiders and the company is defined in ______

a)Prospectus

b)Articles of Association

c)Memorandum of Association

d)Certificate of Incorporation

Answer Key:

c) Memorandum of Association

2.Table A of the Companies Act is a ______
a)odel minutes book
b) Model form of Balance Sheet
c)Model of AOA
d)Model of MOA
Answer Key:
c) Model of AOA

3.Which of the following is created by a Special Act of Parliament or in State Assemblies?
a)Chartered company
b)Foreign company
c)Government company
d) Statutory company
Answer Key:
d) Statutory company

4.The Board of directors of a company is elected by _________
a)Creditors
 b)Debtors
 c)Debenture holders
 d)Share holders
Answer Key:
 d)Share holders 

5. Companies established as a result of a charter granted by the King or 

Queen of a country is  called ___

a) Chartered companies
b) Statutory companies
c) Registered companies
d) Foreign companies
Answer Key:
a) Chartered companies

II. Very Short answer questions

1. What are the different types of companies?

• Incorporation
• Membership
• Member liability
• control
• Nationality

2. Define a Company.
“A company is an artificial person created by law having a separate entity with a perpetual succession   and a common seal”.
                                                                              - Sec 2 of Companies Act 2013
3. What is meant by Limited liability?

• The liability of the members of the company is limited to contribution to the assets of the company  upto the face value of shares held by him.

4. Explain any two characteristics of a company.

• Separate Legal Entity
• Limited Liability
• Common Seal
• One Share-One Vote

5. What is meant by Chartered Company?

• Chartered companies are established by the King or Queen of a country.
• Powers and privileges of chartered company are specified in the charter.
• Power to cancel the charter is vested with King/Queen

III. Short answer questions

1. What are the advantages of Companies?(any 3)
  Large Capital
     A company can secure large capital compared to a sole trader or partnership.
 Limited Liability
    The liability of a shareholder is limited.
 Transferability of Shares
    Transaction of Shares between two individuals is easy.

2.What is meant by Government Company? 

A public enterprise incorporated under the Indian Companies Act, 1956 is called a government company

•  The Central Government
•  Any State Government
• Partly by the Central Government and partly by one or more State Governments.

3.What is meant by Foreign Company?

• A foreign company means a company which is incorporated in a country outside India under the law of that country.
•  After the establishment of business in India,
• The following documents must be filed with the Registrar of Companies within 30 days from

IV. Long answer questions

1.What are the contents of Memorandum of Association?(any 5)  

Name Clause

• The name clause requires to state the legal and recognized name of the company. 

 Situation Clause

•  The registered office clause requires to show the physical location of the registered office  of the company. 

 Liability Clause

•  The liability clause requires to state the extent to which shareholders of the company are  liable to the debt obligations of the company in the event of the company dissolving. 

 Capital Clause

•  The capital clause requires to state the company’s authorized share capital, 

 Association Clause

• The association clause confirms that shareholders bound by the MOA are willingly associating and  forming a company.the date of establishment.
  

 2. What are the contents of Articles of Assocition?(any 5)

• Amount of shares, capital, value and type of shares
• Manner of transfer of shares
• Declaration of dividends
• Borrowing powers of the company
• Seal of the company.
•  Rules regarding issue of shares and debentures.

3. What is meant by Multi National Company?

• Operates in more than one country.
• Carries out production, marketing and research activities on international Scale in  those countries.
• Seeks to maximise profits world over.
• A domestic company or a foreign company can be a MNC.

Examples:

 Microsoft Corporation, Nokia Corporation, Nestle, Coca-Cola, International Business Machine, Pepsico, Sony Corporation.