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 10 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 10 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. LLP Act was passed in ..... A) 2005. B) 2008. C) 1932. D) 2013. Show Answer Correct Answer: B) 2008. 2. The minimum and maximum number of partners in a partnership firm are: A) 2 and 100 respectively. B) 2 and 50 respectively. C) 10 and 100 respectively. D) 10 and 50 respectively. Show Answer Correct Answer: B) 2 and 50 respectively. 3. What type of tax do partners in a Partnership pay? A) Sales tax. B) No tax. C) Corporate tax. D) Personal income tax. Show Answer Correct Answer: D) Personal income tax. 4. A sole proprietor enjoys limited liability A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 5. A business with one owner is known as a: A) Company. B) Sole trader. C) Partnership. D) None of the above. Show Answer Correct Answer: B) Sole trader. 6. The capital of company is divided into number of parts and each part is known as ..... A) Capital. B) Borrowing. C) Shares. D) None of these. Show Answer Correct Answer: C) Shares. 7. Appointment of underwriters is necessary in the capital subscription stage. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 8. How is a joint stock company different from other types of organizations? A) Its members do not contribute money. B) It cannot be dissolved by law. C) It does not have a separate legal existence. D) It has a separate legal existence. Show Answer Correct Answer: D) It has a separate legal existence. 9. The maximum number of partners allowed in the banking business are A) (b) Twenty. B) Two. C) (d) Ten. D) (c) No limit. Show Answer Correct Answer: C) (d) Ten. 10. Which one is NOT a featre of company A) Seperation of Ownership and Control. B) Common Seal. C) Registration/ Incorporation is optional. D) Legal person created by law. Show Answer Correct Answer: C) Registration/ Incorporation is optional. 11. Whih is NOT correct in respect of secret partner A) Contributes Capital. B) Publically participates in the management of firm. C) Unlimited Liability. D) Shares Profits or Losses. Show Answer Correct Answer: B) Publically participates in the management of firm. 12. Which of the following is not a form of business organization based on ownership? A) Sole Proprietorship. B) Corporation. C) Partnership. D) Service. Show Answer Correct Answer: D) Service. 13. Name the form of business organisation in which members are jointly and individually liable for payment of debts. A) *Co-operative Society. B) *Partnership. C) *Sole Proprietorship. D) *Joint Hindu Family Business. Show Answer Correct Answer: B) *Partnership. 14. What type of business structure is owned by many people? A) Company. B) Firm. C) Partnership. D) Sole proprietorship. Show Answer Correct Answer: A) Company. 15. Which is not a limitation of Sole proprietorship. A) Easy formation. B) Limited managerial ability. C) Limited resources. D) Limited life of business. Show Answer Correct Answer: D) Limited life of business. 16. What is the limit of members in case of a Private Company? A) 2. B) 10. C) 50. D) 7. Show Answer Correct Answer: C) 50. 17. Important aspects of a limited company, such as thename of the firm, information about the stock issued, and a description of the firm's operations, arecontained in a: A) Mission. B) Articles of association. C) Memorandum of association. D) Policy. E) Prospectus. Show Answer Correct Answer: C) Memorandum of association. 18. Which of the following is a disadvantage of a Cooperative Society? A) Limited capital. B) Service motive. C) Voluntary membership. D) Democratic control. Show Answer Correct Answer: A) Limited capital. 19. Which of the following company offers protection of limited liability for its members? A) Limited Liability Company. B) One Person Company. C) Partnership. D) Private Limited Company. Show Answer Correct Answer: A) Limited Liability Company. 20. What is the primary reason for choosing a company form of business? A) Limited liability. B) Low cost. C) Personal attention. D) Easy closure. Show Answer Correct Answer: A) Limited liability. 21. In JHFB ..... has unlimited liability . A) Member. B) HUF. C) Karta. D) All of the above. Show Answer Correct Answer: C) Karta. 22. Joint Stock Company has to follow a certain specified legal procedure forits formation. Arrange the following steps of formation in a proper order.I. Capital subscription stages II. PromotionIII. Commencement of business IV. Incorporation Select from the following options: A) III, II, I, IV. B) II, IV, III, I. C) IV, II, III, I. D) II, IV, I, III. Show Answer Correct Answer: D) II, IV, I, III. 23. As per SEBI guidelines minimum subscription of shares will be A) 50%. B) 100%. C) 70%. D) 90%. Show Answer Correct Answer: D) 90%. 24. Main disadvantage of unlimited partnership is ..... A) Unlimited Liability. B) Limited Liability. C) Resptricted capital. D) None of these. Show Answer Correct Answer: A) Unlimited Liability. 25. Vashisht is the promoter of a company. He was in the process of making an application to a stock exchange for listing the securities. The allotment will become void if the company does not receive the permission within the stipulated time frame of A) Two weeks from the date of closure of subscription. B) Ten months from the date of closure of subscription. C) Ten weeks from the date of closure of subscription. D) None of the above. Show Answer Correct Answer: C) Ten weeks from the date of closure of subscription. 26. ..... type of partnership was not allowed before 1991. A) Limited Liability Partnership. B) Unlimited Liability Partnership. C) Specific Libility Partnership. D) None of the above. Show Answer Correct Answer: A) Limited Liability Partnership. 27. Sole traders and Partnerships are A) Shareholding. B) Unincorporated. C) Profit making. D) Incorporated. Show Answer Correct Answer: B) Unincorporated. 28. In ..... partnership, all of the partners actively run the business and are liable for company debts. A) A limited. B) Public. C) An unlimited. D) None of the above. Show Answer Correct Answer: C) An unlimited. 29. One of the disadvantages of an entrepreneur buying a new franchise is A) The profits of the franchisor's business will be lower. B) A share of the set up costs will be paid to the franchisor. C) Consumers are less likley to not all decisions are taken by the franchisee. D) Consumers are less likley to have heard of the franchise. Show Answer Correct Answer: C) Consumers are less likley to not all decisions are taken by the franchisee. 30. For which of the following type of business, do you think a sole proprietorship form of organisation would be more suitable? A) Legal consultancy. B) Craft centre. C) Grocery store. D) Internet cafe. Show Answer Correct Answer: C) Grocery store. 31. Suppose Amit is a shareholder in a company holding 500 shares of 10 each on which he has already paid 8 per share. His liability in the event of losses or company's failure to pay debts can be only up to A) 1, 000. B) 5, 000. C) 4, 000. D) 2, 000. Show Answer Correct Answer: A) 1, 000. 32. Which of the following is a disadvantage of corporations: A) Unlimited liability. B) Financial power. C) Unlimited life. D) High taxes. Show Answer Correct Answer: D) High taxes. 33. The principle of one man one vote in government is this form of business A) Sole proprietorship. B) Joint Hindu family. C) Cooperative societies. D) Partnership. Show Answer Correct Answer: C) Cooperative societies. 34. In a cooperative society, which of the following principle is followed? A) One share one vote. B) No vote. C) Multiple votes. D) One man one vote. Show Answer Correct Answer: D) One man one vote. 35. Companies can be ..... or ..... A) Private, Public limited. B) Individual, General. C) Co-operative, Partnership. D) Private, Public unlimited. Show Answer Correct Answer: A) Private, Public limited. 36. Karta is responsible for which form of business organisation? A) Soleproprietor. B) HUF. C) Partnership. D) Company. Show Answer Correct Answer: B) HUF. 37. Why do companies decide to be multinational A) Gain trade barriers. B) To reduce production costs. C) Entering a new country gives the business a new market. D) To completely avoid tax liability. Show Answer Correct Answer: C) Entering a new country gives the business a new market. 38. What is the maximum number of partners allowed in a partnership firm? A) 20. B) 50. C) 100. D) 10. Show Answer Correct Answer: B) 50. 39. Beauty parlours comes under which form of business organization? A) Partnership. B) Sole Proprietorship. C) Company. D) None of the above. Show Answer Correct Answer: B) Sole Proprietorship. 40. What can cause delays in completing crucial projects in Public Private Partnerships (PPPs)? A) Efficient collaboration. B) Government oversight. C) Conflicts between government and private firms. D) Fast-track approvals. Show Answer Correct Answer: C) Conflicts between government and private firms. 41. All of the following are advantages of joint ventures except A) Manufacturing costs will be divided between the firms. B) Management of a joint venture might cause disagreement. C) The cost of a new project can be split between companies. D) Joint venture companues can enjoy economies of scale. Show Answer Correct Answer: B) Management of a joint venture might cause disagreement. 42. Assertion (A):At BEP, neither profit nor loss Reason (R ):BEP is the level of sales at which total revenues equal to total cost. A) A is correct, but R is incorrect. B) Both A and R are incorrect. C) A is incorrect, but R is correct. D) Both A and R are correct, and R is the correct explanation of A. Show Answer Correct Answer: D) Both A and R are correct, and R is the correct explanation of A. 43. Maximum members allowed in case of private company is ..... A) 30. B) 50. C) 20. D) 10. Show Answer Correct Answer: B) 50. 44. Advantages include limited liability for owners, unlimited life, and ease of transfer of ownership. A) Sole Propriotorship. B) Partnership. C) Corporation. D) None of the above. Show Answer Correct Answer: C) Corporation. 45. Registration of ..... compulsory. A) Partnership. B) Sole Proprietorship. C) Joint Stock Company. D) All of the above. Show Answer Correct Answer: C) Joint Stock Company. 46. There is lack of business continuity in sole proprietorship business organisation. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 47. What is the primary difference between industry and commerce? A) Industry involves manufacturing, while commerce involves buying and selling of goods and services. B) Industry is a government sector, while commerce is a private sector. C) Industry is limited to physical products, while commerce deals with intangible services. D) Industry focuses on imports, while commerce focuses on exports. Show Answer Correct Answer: A) Industry involves manufacturing, while commerce involves buying and selling of goods and services. 48. Who holds Public Sector Undertakings (PSUs) accountable for their performance? A) Private investors. B) Parliament. C) Local authorities. D) International organizations. Show Answer Correct Answer: B) Parliament. 49. A partner who do not take part in the routine activities of business. A) Secret. B) Dormant. C) Partner by estoppel. D) Nominal partner. Show Answer Correct Answer: B) Dormant. 50. This type of organization is a legal entity separate from its owners. A) Franchise. B) Partnership. C) Sole proprietorship. D) Corporation. Show Answer Correct Answer: D) Corporation. 51. Minimum number of members-2 A) Cooperative Society. B) Public Company. C) Private Company. D) Sole Proprietorship. Show Answer Correct Answer: C) Private Company. 52. The simplest form of business from the point of view of establishment A) Sole Proprietorship. B) JHFB. C) JSC. D) Partnership. Show Answer Correct Answer: A) Sole Proprietorship. 53. Physicians, web designers, and furniture movers are examples of A) Manufacturers or secondary sector. B) Services or Tertiary sector businesses. C) Nonprofit corporations. D) Intermediaries. Show Answer Correct Answer: B) Services or Tertiary sector businesses. 54. Whichof thefollowing best describesthe term limited liability?If the business fails: A) Personalpossessionsoftheownercanbetakentopayanydebts. B) Theownerispersonallyliableforallthedebtsofthebusiness. C) Thereisnolimitontheamounttheownerhastopaytosettledebts. D) Theowner only loses the amountinvestedinthebusiness. Show Answer Correct Answer: D) Theowner only loses the amountinvestedinthebusiness. 55. What type of partnership exists at the will of the partners? A) General partnership. B) Particular partnership. C) Limited partnership. D) Partnership at will. Show Answer Correct Answer: D) Partnership at will. 56. Membership in Joint Hindu Family Business occurs by which of the following modes? A) Agreement. B) Marriage. C) Birth. D) None of these. Show Answer Correct Answer: C) Birth. 57. Which of the following is an advantage of operating as a sole trader? A) Limited Liability protection. B) Shared decision-making with partners. C) Ease of formation and low startup costs. D) Access to diverse skills and expertise. Show Answer Correct Answer: C) Ease of formation and low startup costs. 58. The profit is not shared with any in case of ..... A) COPS. B) Sole Proprietorship. C) Partnership. D) Joint Stock Company. Show Answer Correct Answer: B) Sole Proprietorship. 59. Which certificate is called the birth certificate of the company? A) Certificate of Registration. B) Certificate of Incorporation. C) All the above. D) None of the above. Show Answer Correct Answer: B) Certificate of Incorporation. 60. Traffic Signal is ..... Language. A) Audio. B) Video. C) Sign. D) None. Show Answer Correct Answer: C) Sign. ← PreviousNext →Related QuizzesCommerce QuizzesClass 11 QuizzesClass 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 1Class 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 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books