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What advantage does Airbnb gain from being classified as a legal person?

It enables Airbnb to avoid paying taxes.

It guarantees profits for all its stakeholders.

It can operate without any regulations.

It allows for limited liability protection for owners. (correct)

Which statement best describes the role of corporate law?

It exclusively governs the operations of natural persons.

It includes laws that apply to all corporate entities. (correct)

It only regulates stock trading activities.

It is primarily focused on consumer protection.

What is a significant challenge Airbnb may encounter as a global business?

Lack of interest from hosts.

Uniformity of laws across all markets.

Navigating differing legal regulations in various countries. (correct)

Ensuring all guests are legal persons.

How does corporate governance benefit companies like Airbnb?

It provides clear rules and practices for direction and control. (D) Signup and view all the answers

What is the primary regulatory body for corporate entities in the context of corporate law?

The Ministry of Corporate Affairs. (C) Signup and view all the answers

Which of the following best defines a legal person?

An entity recognized by the law that has rights and obligations. (C) Signup and view all the answers

Why is a separate legal entity important in business?

It allows businesses to act independently of their owners. (A) Signup and view all the answers

What is NOT a component involved in business transactions?

Selling illegal goods (D) Signup and view all the answers

Which of the following statements about natural persons and legal persons is false?

Natural persons cannot create legal entities. (A) Signup and view all the answers

What is the primary function of law in relation to business?

To establish rules governing conduct and maintain order. (A) Signup and view all the answers

In the context of corporate governance failures, which of the following issues might NOT contribute to such failures?

Effective communication among stakeholders. (B) Signup and view all the answers

Which characteristic distinguishes a legal person from a natural person?

Legal persons cannot conduct business. (C) Signup and view all the answers

What does corporate governance primarily focus on?

The structures and processes for direction and control. (C) Signup and view all the answers

What legal feature allows a body corporate to exist independently of its owners' changes?

Perpetual succession (A) Signup and view all the answers

Which of the following best describes the concept of limited liability?

Owners' personal assets are generally protected from business liabilities. (A) Signup and view all the answers

How can a business operating as a separate legal entity benefit from raising capital?

It can sell shares or attract investors for its growth. (C) Signup and view all the answers

What role does a common seal play in a body corporate?

It acts as a signature for the entity. (B) Signup and view all the answers

In the context of legal persons, what does the term 'separate legal entity' imply?

The business is treated like an individual in legal matters. (D) Signup and view all the answers

Why is improved credibility an advantage of operating as a separate legal entity?

It enhances professionalism when attracting clients or investors. (D) Signup and view all the answers

Which law governs the creation of companies in India?

The Companies Act (A) Signup and view all the answers

What happens to a business's operations when ownership changes under a body corporate?

The operations can continue without interruption. (B) Signup and view all the answers

What is a primary role of corporate governance in relation to natural persons?

Ensuring compliance with applicable laws (D) Signup and view all the answers

Which principle of corporate governance is primarily focused on providing stakeholders with clear and accurate information?

Transparency (B) Signup and view all the answers

What significant governance failure contributed to Byju’s financial difficulties?

Manipulation of cash flow statements (A) Signup and view all the answers

What was one outcome of Deloitte's resignation as Byju’s auditor?

Lack of provided financial statements for over a year (B) Signup and view all the answers

Which of the following is NOT a benefit of corporate governance?

Promotion of fraudulent activities (D) Signup and view all the answers

Which corporate governance failure is associated with data privacy violations at Byju’s?

Aggressive data mining practices (A) Signup and view all the answers

How does corporate governance help protect the interests of society?

By ensuring transparency in financial dealings (D) Signup and view all the answers

What issue did Byju's encounter regarding its repayment obligations?

Failed to repay a $300 million loan (B) Signup and view all the answers

What was one of the main reasons the Satyam scam was discovered?

The Hyderabad property market collapsed. (B) Signup and view all the answers

What action did Satyam's chairman take that was pivotal in uncovering the fraud?

He confessed to falsifying the company's accounts. (B) Signup and view all the answers

What types of issues did Taxi Co. face as it pursued aggressive growth?

Tax evasion, bribery, and workplace harassment. (B) Signup and view all the answers

What did the investigation into Taxi Co. reveal about its financial practices?

The company inflated revenue while downplaying expenses. (A) Signup and view all the answers

Which of the following was a result of the allegations against Taxi Co.?

Investors conducted an investigation. (A) Signup and view all the answers

What specific action did Satyam's directors take to contribute to the company's fraud?

They falsified accounts and inflated share prices. (C) Signup and view all the answers

Which of the following describes the corporate governance issue at Satyam?

Relinquishment of positions by independent directors signaling governance issues. (C) Signup and view all the answers

The phrase 'growth at any cost' is best associated with which company from the content?

Taxi Co. (A) Signup and view all the answers

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Questions and Answers

What advantage does Airbnb gain from being classified as a legal person?

Which statement best describes the role of corporate law?

What is a significant challenge Airbnb may encounter as a global business?

How does corporate governance benefit companies like Airbnb?

What is the primary regulatory body for corporate entities in the context of corporate law?

Which of the following best defines a legal person?

Why is a separate legal entity important in business?

What is NOT a component involved in business transactions?

Which of the following statements about natural persons and legal persons is false?

What is the primary function of law in relation to business?

In the context of corporate governance failures, which of the following issues might NOT contribute to such failures?

Which characteristic distinguishes a legal person from a natural person?

What does corporate governance primarily focus on?

What legal feature allows a body corporate to exist independently of its owners' changes?

Which of the following best describes the concept of limited liability?

How can a business operating as a separate legal entity benefit from raising capital?

What role does a common seal play in a body corporate?

In the context of legal persons, what does the term 'separate legal entity' imply?

Why is improved credibility an advantage of operating as a separate legal entity?

Which law governs the creation of companies in India?

What happens to a business's operations when ownership changes under a body corporate?

What is a primary role of corporate governance in relation to natural persons?

Which principle of corporate governance is primarily focused on providing stakeholders with clear and accurate information?

What significant governance failure contributed to Byju’s financial difficulties?

What was one outcome of Deloitte's resignation as Byju’s auditor?

Which of the following is NOT a benefit of corporate governance?

Which corporate governance failure is associated with data privacy violations at Byju’s?

How does corporate governance help protect the interests of society?

What issue did Byju's encounter regarding its repayment obligations?

What was one of the main reasons the Satyam scam was discovered?

What action did Satyam's chairman take that was pivotal in uncovering the fraud?

What types of issues did Taxi Co. face as it pursued aggressive growth?

What did the investigation into Taxi Co. reveal about its financial practices?

Which of the following was a result of the allegations against Taxi Co.?

What specific action did Satyam's directors take to contribute to the company's fraud?

Which of the following describes the corporate governance issue at Satyam?

The phrase 'growth at any cost' is best associated with which company from the content?

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