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Company : An Introduction

Telangana Open School (TOSS) · Class 12 · Accountancy

Flashcards for Company : An Introduction — Telangana Open School (TOSS) Class 12 Accountancy. Quick Q&A cards covering key concepts, definitions, and formulas.

55 questions30 flashcards5 concepts

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Card 1Meaning of Company

What is a company according to the Companies Act, 2013?

Answer

According to Section 2(20) of the Companies Act, 2013, a company means a company incorporated under this Act or any previous company law. It is a legal entity formed by a group of individuals to carry

Card 2Characteristics of Company

Explain why a company is called an artificial legal person.

Answer

A company is called an artificial legal person because it is created by law and has many rights and powers similar to a human being. It can enter into contracts, own property, sue and be sued in its o

Card 3Characteristics of Company

What is meant by 'incorporated body' in relation to a company?

Answer

An incorporated body means a company that is registered under the Companies Act. Once registered, it gains a separate legal identity distinct from its shareholders. This allows it to own assets, incur

Card 4Characteristics of Company

Why is the capital of a company divisible into shares?

Answer

The capital of a company is divided into small, equal units called shares to make it easier for people to invest. Each share represents a portion of ownership in the company. This division allows for

Card 5Characteristics of Company

What is transferability of shares?

Answer

Transferability of shares means that shareholders can buy or sell their shares freely, especially in public companies. These transactions usually happen on stock exchanges. However, private companies

Card 6Characteristics of Company

Explain the concept of perpetual existence of a company.

Answer

Perpetual existence means that a company continues to exist regardless of changes in its membership. Death, insolvency, or resignation of shareholders does not affect the company's existence. It only

Card 7Characteristics of Company

What is limited liability in a company?

Answer

Limited liability means that a shareholder's financial responsibility is limited to the unpaid amount on their shares. They are not personally liable for the company’s debts beyond this. For example,

Card 8Characteristics of Company

How is a company managed through representative management?

Answer

Since a company has many shareholders spread across locations, they elect representatives called directors. These directors form the Board of Directors and manage the company’s affairs on behalf of al

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What are the important topics in Company : An Introduction for Telangana Open School (TOSS) Class 12 Accountancy?
Company : An Introduction covers several key topics that are frequently asked in Telangana Open School (TOSS) Class 12 board exams. Focus on the core concepts listed on this page and practise related questions to build confidence.
How to score full marks in Company : An Introduction — Telangana Open School (TOSS) Class 12 Accountancy?
Understand the core concepts first, then work through the 55 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.
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There are 30 flashcards for Company : An Introduction covering key definitions, formulas, and concepts. Use them daily for 10–15 minutes for best results.

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