Mech Veg 2 Quiz

Explanation
Public finance is a branch of economics that deals with the management of government finances. It involves studying how the government raises revenue through taxes and other means, as well as how it allocates and spends that revenue on public goods and services. Public finance also examines the impact of government policies on the economy and the distribution of wealth. In this context, the government is a key player in public finance as it is responsible for making financial decisions that affect the overall economy and the well-being of its citizens. The other mentioned entities like the World Bank, RBI, and commercial banks may also play a role in public finance, but the government is the primary focus.

Explanation
The correct answer is "sole trading concern and partnership." Both sole trading concern and partnership have unlimited liability. In a sole trading concern, the owner is personally liable for all the debts and obligations of the business. In a partnership, all partners are jointly and severally liable for the debts and obligations of the partnership. Joint stock companies, on the other hand, have limited liability where the liability of shareholders is limited to the amount they have invested in the company.

Explanation
The board of directors is responsible for managing the risk in a company. They are responsible for making important decisions and setting the overall direction of the company. This includes identifying and assessing risks, implementing risk management strategies, and ensuring that the company's risk exposure is within acceptable limits. The board of directors also plays a crucial role in overseeing the actions of management and holding them accountable for managing risks effectively.

Explanation
The correct answer is "all the above" because stakeholders refer to individuals or groups that have an interest or concern in an organization's activities and outcomes. In this case, suppliers, bankers, society, and employees are all examples of stakeholders as they are directly or indirectly affected by the organization's operations. Therefore, the answer "all the above" encompasses all the mentioned stakeholders.

Explanation
The correct answer is shareholders because a statutory audit is conducted to provide an independent and objective assessment of a company's financial statements. This assessment is primarily done for the benefit of the shareholders, as it helps ensure the accuracy and reliability of the financial information provided by the company. The audit helps shareholders make informed decisions about their investments and protects their interests. Additionally, it also provides transparency and accountability to the shareholders by ensuring that the company is following legal and regulatory requirements.

Explanation
Under a partnership, the maximum number of partners can be 20. This means that a partnership can have up to 20 individuals who share the ownership and responsibilities of the business. Having a larger number of partners can provide a wider pool of skills, expertise, and resources to the partnership, allowing for more diverse perspectives and potentially greater success. However, it is important to note that the specific number of partners allowed may vary depending on the jurisdiction and the partnership agreement.

Explanation
Double taxation problems arise in joint stock companies because they are considered separate legal entities from their shareholders. This means that both the company and its shareholders are subject to taxation on their respective incomes. The company is taxed on its profits, and the shareholders are taxed on the dividends they receive from the company. This can result in the same income being taxed twice, leading to higher tax burdens and potential inefficiencies in the tax system.

Explanation
Internal audit is meant for management. Internal audit is a process conducted within an organization to assess and evaluate the effectiveness of internal controls, risk management, and governance processes. It helps management to identify any weaknesses or areas of improvement in their operations and make informed decisions to enhance efficiency and effectiveness. Internal audit provides management with valuable insights and recommendations to ensure compliance with policies and procedures, mitigate risks, and achieve organizational objectives. It is primarily focused on assisting management in monitoring and improving the overall performance and control of the organization.

Explanation
The principle of a balanced budget implies that the government's expenditure should be equal to its revenue. This means that the government should not spend more money than it earns through various sources such as taxes, fees, and other forms of income. This ensures that the government does not accumulate debt and maintains financial stability.

Explanation
The principle of elasticity applies to both expenditure and taxes because elasticity refers to the responsiveness of a variable to changes in another variable. In this case, both expenditure and taxes can be influenced by changes in other factors. For example, when the price of goods and services increases, individuals may reduce their expenditure, indicating elasticity. Similarly, changes in tax rates can affect the amount of tax revenue collected, demonstrating elasticity. Therefore, the principle of elasticity is applicable to both expenditure and taxes.