This quiz works best with JavaScript enabled. Home > Cbse > Class 11 > Commerce > Business Studies > Class 11 Business Studies Chapter 2 Forms Of Business Organisation – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The liability of sole-trader is ..... A) Limited. B) Unlimited. C) All the above. D) None of the above. Show Answer Correct Answer: B) Unlimited. 2. A legal entity which has a separate identity from its shareholders, whose liability for the company's debts is limited. A) Sole trader. B) Partnership. C) Limited company. D) None of the above. Show Answer Correct Answer: C) Limited company. 3. One of the main drawbacks of many public limited companies is that: A) There can be a loss of control by the original owners as additional shares are sold. B) Firms in the public sector are often less efficient. C) If the company were to fail the shareholders could lose all of their assets. D) Workers have to be asked for their opinions before major decisions are taken. Show Answer Correct Answer: A) There can be a loss of control by the original owners as additional shares are sold. 4. This type of company is not prohibited from inviting public to subscribe to its shares. A) One person company. B) Private company. C) Public company. D) None of the above. Show Answer Correct Answer: C) Public company. 5. Members of Joint Hindu Family are known as: A) Members. B) Partners. C) Coparceners. D) Karta. Show Answer Correct Answer: C) Coparceners. 6. The keyword Multinational means A) In one country. B) In every country. C) In more than one country. D) None of the above. Show Answer Correct Answer: C) In more than one country. 7. Physicians, web designers, and furniture movers are A) Service businesses. B) Intermediaries. C) Manufacturers. D) Nonprofit corporations. Show Answer Correct Answer: A) Service businesses. 8. Which of the following is the primary objective of a not-for-profit organisation? A) Profit Maximisation. B) Social Welfare. C) Not To Earn Profits. D) None of the above. Show Answer Correct Answer: C) Not To Earn Profits. 9. How much did rajat invest? A) 100000. B) 400000. C) 200000. D) 300000. Show Answer Correct Answer: C) 200000. 10. Wholesalers providing warehouse facilities provides manufacturer? A) Goods utility. B) Store utility. C) Time utility. D) Non of the above. Show Answer Correct Answer: A) Goods utility. 11. Which of the businesses has unlimited liability? A) Sole Trader. B) Partnership. C) Both. D) None of the above. Show Answer Correct Answer: C) Both. 12. A sole trader always must work on their own. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 13. An entrepreneur who enters the market with a product or service which is based on new technology is called: A) Necessity entrepreneur. B) Opportunity entrepreneur. C) Innovative entrepreneur. D) Replicative entrepreneur. Show Answer Correct Answer: C) Innovative entrepreneur. 14. What type of business consists of two or more people? A) Partnership. B) Franchise. C) Company. D) Sole proprietorship. Show Answer Correct Answer: A) Partnership. 15. Membership in Hindu Undivided family business is given by ..... A) Ownership right. B) Capital contribution. C) Liability. D) Birth. Show Answer Correct Answer: D) Birth. 16. Joe is starting a small home-based consulting business. He possesses computer knowledge but lacks marketing skills. The form of business ownership that Joe might consider establishing is a(n) A) Corporation. B) General partnership. C) Sole proprietorship. D) Monopoly. Show Answer Correct Answer: B) General partnership. 17. It is necessary to get every company incorporated, whether private or public. A) True. B) False. C) Cant say. D) None of the above. Show Answer Correct Answer: A) True. 18. Which advantage of sole trader businesses relates to flexibility and autonomy? A) Limited personal liability for business debts. B) Ability to raise capital through the sale of shares. C) Access to specialized skills and resources. D) Direct control over business operations and decision-making. Show Answer Correct Answer: D) Direct control over business operations and decision-making. 19. Ownership represented by stock A) Sole Proprietorship. B) Partnership. C) Corporation. D) None of the above. Show Answer Correct Answer: C) Corporation. 20. Which is NOT Correct in repect of LLP A) Liability of all partners are limited. B) Hybrid form of business combining features of partnerships and companies. C) Registratio is Optional. D) Has perpetual succession. Show Answer Correct Answer: C) Registratio is Optional. 21. Which act governs Cooperative Societies in India? A) Indian Partnership Act, 1932. B) Co-operative Societies Act, 1912. C) Hindu Law. D) Companies Act, 2013. Show Answer Correct Answer: B) Co-operative Societies Act, 1912. 22. A stock market flotation occurs when a company ..... A) Goes public. B) Goes limited. C) Goes local. D) Goes global. Show Answer Correct Answer: A) Goes public. 23. How do partners in a Joint Venture share the outcomes of their collaboration? A) By not sharing profits. B) By sharing risks and rewards. C) By ignoring each other's contributions. D) By avoiding teamwork. Show Answer Correct Answer: B) By sharing risks and rewards. 24. Unlimited Liability A) Co-parceners. B) Karta. C) Members of cooperative society. D) Shareholders. Show Answer Correct Answer: B) Karta. 25. Which clause of memorandum defines the powers of the company? A) Object clause. B) Liability clause. C) Association clause. D) Capital clause. Show Answer Correct Answer: A) Object clause. 26. Which of the following is an example of a public sector business? A) Factory. B) Grocery store. C) Hospital. D) Restaurant. Show Answer Correct Answer: C) Hospital. 27. What is a disadvantage of being a sole trader? A) They are easy to set up with few legal requirements. B) They have limited liability. C) Business is often too small to exploit economies of scale. D) Shareholders may disagree and fall out. Show Answer Correct Answer: C) Business is often too small to exploit economies of scale. 28. Categorise the following into Analytical, Synthetical & Processing:1. Soaps Industry; 2. Sugar Industry; 3. Oil Refinery A) Analytical ;Synthetical ; Processing. B) Synthetical; Analytical; Processing. C) Synthetical ;Processing; Analytical. D) None of these. Show Answer Correct Answer: C) Synthetical ;Processing; Analytical. 29. What is a key feature of private limited companies? A) Have unlimited liability. B) Require no legal formalities. C) Have separate legal identities. D) Can sell shares to the public. Show Answer Correct Answer: C) Have separate legal identities. 30. A prospects issued by: A) Private company. B) Public enterprises. C) Public company seeking investment from public. D) Public company. Show Answer Correct Answer: C) Public company seeking investment from public. 31. Partnership is governed by which Act? A) 1956. B) 1986. C) 1932. D) 1999. Show Answer Correct Answer: C) 1932. 32. One of the main disadvantages of a PLC is the A) Loss of control by the owners as additional shares are sold. B) Diseconomies of scale. C) Possibility that if a company fails owners might lose personal assets. D) Firms in the public sector are often less efficient. Show Answer Correct Answer: A) Loss of control by the owners as additional shares are sold. 33. Which of these is most likely related to private company? A) Has minimum paid up capital of five lakh. B) Does not offer its shares to general public. C) Permits easy transfer of its shares. D) No limit of maximum number. Show Answer Correct Answer: B) Does not offer its shares to general public. 34. Which one is NOT a principle of co-operation A) Concern for community. B) Open Membership. C) Copetition among co-operatives. D) Member economic participation. Show Answer Correct Answer: C) Copetition among co-operatives. 35. 'Return of allotment', signed by a director or secretary is filed with the registrar companies within how many days of allotment of shares? A) 8 days. B) 15 days. C) 10 days. D) 30days. Show Answer Correct Answer: D) 30days. 36. What is the maximum number of members in a Private Limited Company? A) 100 members. B) 10 members. C) 20 members. D) 50 members. Show Answer Correct Answer: D) 50 members. 37. In which type of business organisation the owner does not share his/her profit. A) Sole proprietorship. B) Cooperative society. C) Joint Hindu family. D) Partnership. Show Answer Correct Answer: A) Sole proprietorship. 38. The liability of members of a cooperative society is ..... to the extent of their capital contribution. A) LIMITED. B) UMLIMITED. C) All the above. D) None of the above. Show Answer Correct Answer: A) LIMITED. 39. Which is NOT applicable to Particular Partnership A) Formed for accomplishng particular project. B) Activity to be carried on for a particular time period. C) Dissolves automatically when the project or time completes. D) Firm will continue as long as partners wants. Show Answer Correct Answer: D) Firm will continue as long as partners wants. 40. One of the disadvantages of a sole trader business is that: A) Capital is limited to owner's savings and bank loans. B) Decisions take too long to make. C) As they are government owned there is no profit motive. D) The owners may disagree. Show Answer Correct Answer: A) Capital is limited to owner's savings and bank loans. 41. A person who lends his name and goodwill to benefit a partnership firm. A) Nominal partner. B) Partner by holding out. C) Secret partner. D) Partner by Estoppel. Show Answer Correct Answer: A) Nominal partner. 42. Law firms and doctor's offices are examples of ..... A) Sole Proprietorships. B) Corporations. C) Partnerships. D) Franchises. Show Answer Correct Answer: C) Partnerships. 43. Partnership can continue as long as the partners want and is terminated when any partner gives a notice of withdrawal. Identify the type of Partnership. A) Limited Partnership. B) Particular Partnership. C) General Partnership. D) Partnership at will. Show Answer Correct Answer: D) Partnership at will. 44. Which one of the following is an advantage of centralisation? A) It helps to develop the skills of junior managers. B) It avoids overburdening top managers in terms of workload and stress. C) Senior managers can take a wider view of problems and consequences. D) None of the above. Show Answer Correct Answer: C) Senior managers can take a wider view of problems and consequences. 45. ..... society aims to fight against the big capitalists and enhance the bargaining power of the small producers. A) Consumer's cooperative. B) Farmer's cooperative. C) Marketing cooperative. D) Producer's cooperative. Show Answer Correct Answer: D) Producer's cooperative. 46. Oil refinery and sugar mill are classified under which industries? A) Primary. B) Secondary. C) Testing. D) Non of the above. Show Answer Correct Answer: A) Primary. 47. Disadvantage to the franchisee from franchising business. A) Franchisor pays for advertising. B) All supplies are obtained from a central source-the franchisor. C) Training for staff and management is provided by the franchisor. D) Less independence than with operating a non-franchised business. Show Answer Correct Answer: D) Less independence than with operating a non-franchised business. 48. A private limited company's business name often ends in ..... A) PLC. B) Ltd. C) Org. D) Traders. Show Answer Correct Answer: B) Ltd. 49. Which of the following statements are true? I. Variable cost per unit remains to be same. II. Total variable cost will change according to the level of output. A) Variable cost per unit increases with production. B) Total variable cost remains constant regardless of output. C) Variable cost per unit varies with fixed costs. D) Both statements are true. Show Answer Correct Answer: D) Both statements are true. 50. Sole traders are businesses less complicated to run. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 51. The partner who allows the firm to use his name is called, A) Nominal. B) Minor. C) Active. D) Sleeping. Show Answer Correct Answer: A) Nominal. 52. 'One man show' form of business organisation is A) Joint Hindu family business. B) Sole proprietorship business. C) Organisation. D) None of the above. Show Answer Correct Answer: B) Sole proprietorship business. 53. One advantage of a Co-operative business is that members work for themselves and make shared decision. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 54. Which one is NOT a merit of co-operative societies A) Inequality in voting rights. B) Support from Government. C) Limited Liability. D) Stable existence. Show Answer Correct Answer: A) Inequality in voting rights. 55. The principle of corporate veil separates ..... A) The company with creditors. B) The company from people behind it. C) The creditors with shareholders. D) None of the above. Show Answer Correct Answer: B) The company from people behind it. 56. Groups of people form consumer cooperatives to A) Purchase goods and services more cheaply than they could as individuals. B) Reduce the amount of property taxes that each member must pay. C) Generate a profit for each member of the group. D) Increase their political power in their community. Show Answer Correct Answer: A) Purchase goods and services more cheaply than they could as individuals. 57. The head of Joint Hindu business is called A) Chairman. B) Karta. C) Owner. D) Director. Show Answer Correct Answer: B) Karta. 58. One man one vote A) Partnership. B) Cooperative Societies. C) Sole proprietorship. D) Joint Hindu Family Business. Show Answer Correct Answer: B) Cooperative Societies. 59. Ramesh is presenting himself as a partner of ABC Associates through his conduct or behavior. Clients dealing with the firm accept him as a partner due to his self-acclaimed attitude of being a partner of the firm. Which type of partner Mr. Ramesh is referred to in the above case? A) Secret partner. B) Sleeping partner. C) Active partner. D) Partner by Estoppel. Show Answer Correct Answer: D) Partner by Estoppel. 60. The shareholders elect a Board of Directors to run a Private Limited Company A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. Next →Related QuizzesCommerce QuizzesClass 11 QuizzesClass 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 2Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 3Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 4Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 5Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 6Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 7Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 8Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books