CA Foundation Exam  >  CA Foundation Questions  >  An enterprise incorporated by a Special Act o... Start Learning for Free
An enterprise incorporated by a Special Act of Parliament or the State Legislature intending to carry on some business of national importance is called _______.
  • a)
    public company
  • b)
    statutory corporation
  • c)
    registered company
  • d)
    registered statutory company
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
An enterprise incorporated by a Special Act of Parliament or the State...
The statutory corporations are public bodies which are regulated by a statute. E.g. RBI, SBI .etc. Hence, an enterprise incorporated by a Special Act of Parliament or the state legislature intending to carry on some business of national importance is called statutory corporation.
View all questions of this test
Most Upvoted Answer
An enterprise incorporated by a Special Act of Parliament or the State...
Statutory Corporation

A statutory corporation is an enterprise incorporated by a Special Act of Parliament or the State Legislature with the purpose of carrying out a specific business of national importance. It is a legal entity that operates under a specific statute or law and has powers and functions defined by that statute. Statutory corporations are created by the government to undertake activities that are in the public interest and require a separate legal entity to carry them out effectively.

Characteristics of Statutory Corporation:
- Created by Special Act: Statutory corporations are established through a Special Act of Parliament or the State Legislature. This act sets out the purpose, powers, and functions of the corporation.
- National Importance: The business undertaken by a statutory corporation is of national importance and serves the public interest. It may involve sectors such as infrastructure development, utilities, transportation, or public services.
- Separate Legal Entity: A statutory corporation has a separate legal existence from its members or shareholders. It can sue and be sued in its own name and is responsible for its debts and obligations.
- Autonomous Governance: Statutory corporations have a degree of autonomy in their governance. They typically have a board of directors or governing body appointed by the government, and they operate independently of direct government control.
- Limited Liability: Like other corporations, statutory corporations have limited liability. This means that the liability of the corporation is limited to its assets, and the personal assets of its members or shareholders are protected.
- Public Accountability: Although statutory corporations have autonomy, they are still accountable to the government and the public. They are required to submit regular reports, financial statements, and other information to ensure transparency and accountability.

Examples of Statutory Corporations:
- Airports Authority of India (AAI)
- Oil and Natural Gas Corporation (ONGC)
- National Thermal Power Corporation (NTPC)
- Life Insurance Corporation of India (LIC)
- Food Corporation of India (FCI)

In conclusion, a statutory corporation is an enterprise created by a Special Act of Parliament or the State Legislature to undertake a specific business of national importance. It operates as a separate legal entity, has limited liability, and is accountable to the government and the public.
Explore Courses for CA Foundation exam
An enterprise incorporated by a Special Act of Parliament or the State Legislature intending to carry on some business of national importance is called _______.a)public companyb)statutory corporationc)registered companyd)registered statutory companyCorrect answer is option 'B'. Can you explain this answer?
Question Description
An enterprise incorporated by a Special Act of Parliament or the State Legislature intending to carry on some business of national importance is called _______.a)public companyb)statutory corporationc)registered companyd)registered statutory companyCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about An enterprise incorporated by a Special Act of Parliament or the State Legislature intending to carry on some business of national importance is called _______.a)public companyb)statutory corporationc)registered companyd)registered statutory companyCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An enterprise incorporated by a Special Act of Parliament or the State Legislature intending to carry on some business of national importance is called _______.a)public companyb)statutory corporationc)registered companyd)registered statutory companyCorrect answer is option 'B'. Can you explain this answer?.
Solutions for An enterprise incorporated by a Special Act of Parliament or the State Legislature intending to carry on some business of national importance is called _______.a)public companyb)statutory corporationc)registered companyd)registered statutory companyCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of An enterprise incorporated by a Special Act of Parliament or the State Legislature intending to carry on some business of national importance is called _______.a)public companyb)statutory corporationc)registered companyd)registered statutory companyCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of An enterprise incorporated by a Special Act of Parliament or the State Legislature intending to carry on some business of national importance is called _______.a)public companyb)statutory corporationc)registered companyd)registered statutory companyCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for An enterprise incorporated by a Special Act of Parliament or the State Legislature intending to carry on some business of national importance is called _______.a)public companyb)statutory corporationc)registered companyd)registered statutory companyCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of An enterprise incorporated by a Special Act of Parliament or the State Legislature intending to carry on some business of national importance is called _______.a)public companyb)statutory corporationc)registered companyd)registered statutory companyCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice An enterprise incorporated by a Special Act of Parliament or the State Legislature intending to carry on some business of national importance is called _______.a)public companyb)statutory corporationc)registered companyd)registered statutory companyCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev