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 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 11 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. HUF is governed by A) Hindu law of succession. B) Muslim law of succession. C) All the above. D) None of the above. Show Answer Correct Answer: A) Hindu law of succession. 2. Which of the following is a limitation of a cooperative society A) A co-operative society is managed in a democratic way. B) Members have limited liability. C) Co-operative societies can't extend beyond a certain limit, they are likely to fail if they try to expand like big joint stock companies. D) Co-operative societies have open membership. Show Answer Correct Answer: C) Co-operative societies can't extend beyond a certain limit, they are likely to fail if they try to expand like big joint stock companies. 3. Separate Legal Entity A) Sole Proprietorship. B) Cooperative Society. C) Partnership. D) Joint Hindu Family Business. Show Answer Correct Answer: B) Cooperative Society. 4. What is an organisation which has removed the internal barriers which separate hierarchy levels andfunctions and also between the organisation and its suppliers, customers and competitors known as? A) Boundaryless organisation. B) Hollow organisation. C) Modular organisation. D) Jobless structure. Show Answer Correct Answer: A) Boundaryless organisation. 5. Nike, Fashion Valet, and Google are examples of A) Company. B) Sole proprietorship. C) Partnership. D) Self business. Show Answer Correct Answer: A) Company. 6. Identify the type of cooperative society which aims in procuring inputs for conversion to output. A) Consumers Cooperative Society. B) Producers Cooperative Society. C) Marketing Cooperative Society. D) Operations Cooperative Society. Show Answer Correct Answer: B) Producers Cooperative Society. 7. The members of Hindu undivided family business are called . A) Karta. B) Partner. C) Parcener. D) Coparcener. Show Answer Correct Answer: D) Coparcener. 8. A sole proprietorship is easier and less costly than starting any other form of business. A) Ture. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) Ture. 9. The death, lunacy or insolvency of any member of the family does not affect the existence of a Joint Hindu Family Business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 10. Identify the cooperative society established by the people of Dwarkapuri. A) Marketing Cooperative Society. B) Cooperative Credit Society. C) Consumers' Cooperative Society. D) Producers' Cooperative Society. Show Answer Correct Answer: C) Consumers' Cooperative Society. 11. What is a key characteristic of a partnership agreement? A) It states the business is owned by one person. B) It requires no legal documentation. C) It outlines how profits and responsibilities are shared. D) It allows for unlimited partners. Show Answer Correct Answer: C) It outlines how profits and responsibilities are shared. 12. Ownership of the asset is transferred to the hire purchaser on A) At the start of the hire purchase agreement. B) After the first payment is made. C) When the asset is fully paid off. D) The end of the hire purchase agreement. Show Answer Correct Answer: D) The end of the hire purchase agreement. 13. The decision making process is slow for all the following forms of business organisations EXCEPT: A) Partnerships. B) Co-operatives. C) Companies. D) Sole trader. Show Answer Correct Answer: D) Sole trader. 14. Whichof thefollowing is adrawbackfor anentrepreneursetting up a business as asole proprietorship? A) Profit is shared. B) Limited liability. C) Unlimitedliability. D) Financialaccountsarekeptprivate. Show Answer Correct Answer: C) Unlimitedliability. 15. It is optional for a partnership firm to get registered. A) True. B) False. C) Can't say. D) Partially true. Show Answer Correct Answer: A) True. 16. Which of the following is owned by a single person? A) Public Company. B) Private Company. C) Sole Proprietorship. D) Joint Hindu family. Show Answer Correct Answer: C) Sole Proprietorship. 17. It is not compulsory for Private Ltd. company to A) Maintain index of members. B) Issue prospectus. C) Conduct statutory meeting. D) All of the above. Show Answer Correct Answer: D) All of the above. 18. The directors take all decisions on behalf of the shareholders, keeping in mind their own benefit. Identify the demerit stated above. A) Delay in decision making. B) Numerous regulations. C) Oligarchic management. D) Lack of secrecy. Show Answer Correct Answer: C) Oligarchic management. 19. A proposed name of a company is considered undesirable if: A) It is identical with the name of an existing company. B) It resembles closely with the name of an existing company. C) It is an emblem of government of India, United Nations etc. D) In case of any of the above. Show Answer Correct Answer: D) In case of any of the above. 20. In a Joint Hindu Family Business, who is known as the Karta? A) The financial manager. B) The youngest member. C) The legal advisor. D) The eldest member. Show Answer Correct Answer: D) The eldest member. 21. What is a modern business characteristic that emphasizes the use of advanced technology? A) Traditional approach. B) Small-scale operations. C) Innovation and technology adoption. D) Manual labor-intensive. Show Answer Correct Answer: C) Innovation and technology adoption. 22. Which of the following is NOT a business organization? A) Partnership. B) Sole Proprietorship. C) Corporation. D) Perfect Competition. Show Answer Correct Answer: D) Perfect Competition. 23. What control do private enterprises have over wages and service costs? A) Complete control. B) Government control. C) No control. D) Partial control. Show Answer Correct Answer: A) Complete control. 24. Sole Proprietorship is most suitable for ..... A) Small scale concerns. B) Medium scale concerns. C) Large scale concerns. D) None of the above. Show Answer Correct Answer: A) Small scale concerns. 25. Which one is an example of consumer co-operative societies A) Thriveni Super Market. B) College Co-operative Stores. C) Neethi Medical Stores. D) All of these. Show Answer Correct Answer: D) All of these. 26. What is one reason why public corporations are established? A) To maximize profits for shareholders. B) To operate without any regulations. C) To provide essential services to the public. D) To compete with private businesses. Show Answer Correct Answer: C) To provide essential services to the public. 27. Assertion (A):A company can enter into contracts, file suits against others, and can own property.Reason(R):A company is a creation of law, it is called an artificial person. A) Both A and R are true and R is the correct explanation of A. B) Both A and R are true but R is not the correct explanation of A. C) A is true but R is false. D) A is false but R is true. Show Answer Correct Answer: A) Both A and R are true and R is the correct explanation of A. 28. What essential services are offered free or subsidized by public enterprises? A) Electricity and water. B) Schools and hospitals. C) Internet and phone services. D) Luxury goods. Show Answer Correct Answer: B) Schools and hospitals. 29. Who undertakes the management & control of the affairs of the company on behalf of its owners? A) Vice president. B) Departmental Heads. C) Managing Directors. D) Board of Directors. Show Answer Correct Answer: D) Board of Directors. 30. This type of partnership is less risky because this partner is only responsible for the contribution he/she has made to the partnership A) Corporation. B) Sole proprietorship. C) General Partnership. D) Limited partnership. Show Answer Correct Answer: D) Limited partnership. 31. Service offered by wholesale to manufacture as a? A) Help in marketing function. B) Provide financial assistance. C) Storage. D) All of the above. Show Answer Correct Answer: A) Help in marketing function. 32. Board of Directors will be elected by ..... A) Creditors of the company. B) Government. C) Shareholders of the company. D) Employess of the company. Show Answer Correct Answer: C) Shareholders of the company. 33. Which of the following statements about an organisation chart is not true? A) An organisation chart provides a summary of the structure of a business. B) An organisation chart can improve internal communications within a business. C) An organisation chart can improve employees' understanding of their role in a business. D) An organisation chart can indicate functional authority but not line authority within a business. Show Answer Correct Answer: D) An organisation chart can indicate functional authority but not line authority within a business. 34. The minimum number of members required to form a cooperative society is- A) Ten. B) Five. C) Twenty. D) Two. Show Answer Correct Answer: A) Ten. 35. Secracy in sole tradership is always profitable. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 36. What is a disadvantage of being a limited company? A) Profits are often shared between more people. B) Control of the business cannot be lost to external parties. C) More capital be be raised by issuing shares. D) Shareholders have limited liability. Show Answer Correct Answer: A) Profits are often shared between more people. 37. The banks offers Overdraft facility to A) Recurring Deposit Holder. B) Current Account Holder. C) Savings Bank Account Holder. D) None of these. Show Answer Correct Answer: B) Current Account Holder. 38. Who is the only owner of the sole proprietorship? A) Partner. B) Karta. C) Co parceners. D) Sole proprietor. Show Answer Correct Answer: D) Sole proprietor. 39. Issued capital of A tech ltd.was Rs. 5o crore, co.gets the subscribed capital of Rs.44 crore. Now company can allot share to shareholders. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 40. Which feature of partnership binds all the partners to the agreement signed by one partner? A) Mutual Agency. B) Decision Making and control. C) Risk bearing. D) None of the above. Show Answer Correct Answer: A) Mutual Agency. 41. From the following which is allowed to sell shares to public? A) Partnership Firm. B) Public Limited Company. C) Sole Trader. D) Private Limited Company. Show Answer Correct Answer: B) Public Limited Company. 42. Minimum nember of members for forming a private company is ..... A) 5. B) 2. C) 7. D) 25. Show Answer Correct Answer: B) 2. 43. Amount of capital issued to the shareholders. A) Called up capital. B) Paid up capital. C) Issued share capital. D) None of the above. Show Answer Correct Answer: C) Issued share capital. 44. Some owners have unlimited liability A) Business. B) Organisation. C) Partnership. D) Sole trader. Show Answer Correct Answer: C) Partnership. 45. 1 Minimum number of partner in partnership firm? A) 2. B) 3. C) 4. D) 1. Show Answer Correct Answer: A) 2. 46. The business is owned and operated by one (1) person A) Soul Proprietorship. B) Sole Proprietorship. C) Sole Proprietorship. D) Proprietorship. Show Answer Correct Answer: B) Sole Proprietorship. 47. What is the main responsibility of the board of directors in a Company? A) To manage the business. B) To hire employees. C) To sell shares. D) To pay taxes. Show Answer Correct Answer: A) To manage the business. 48. A business run by 2-20 people and has unlimited liability is known as a: A) Company. B) Sole trader. C) Partnership. D) None of the above. Show Answer Correct Answer: C) Partnership. 49. Who owns a private limited company? A) Shareholders. B) Stakeholders. C) Company management. D) Directors. Show Answer Correct Answer: A) Shareholders. 50. A business owned and managed by a single person are called as ..... A) Joint stock company. B) Hindu Undivided Family. C) Sole Proprietorship. D) Partnership. Show Answer Correct Answer: C) Sole Proprietorship. 51. The compliance of Limited Liability Partnership is A) High. B) Medium. C) Low. D) All of the above. Show Answer Correct Answer: C) Low. 52. Two Brothers Pizza would most likely show which type of ownership A) Partnership. B) Corporation. C) Stock and Bonds. D) Single Ownership. Show Answer Correct Answer: A) Partnership. 53. Which of the following is NOT a form of business organisation A) Trusts. B) Companies. C) Co-operative Societies. D) Partnerships. Show Answer Correct Answer: A) Trusts. 54. Which of the following is not the benefit of cooperative societies? A) Political interference. B) Democratic management. C) Tax advantage. D) Stability. Show Answer Correct Answer: A) Political interference. 55. OPC as a type of company means A) Oil Producing Company. B) One Person Company. C) Oxygen Producing Company. D) None of these. Show Answer Correct Answer: B) One Person Company. 56. In HUF members of the family are called as A) Partners. B) Coparceners. C) Share holders. D) Owners. Show Answer Correct Answer: B) Coparceners. 57. The major policy and financial decision makers of a corporation are determined by the ..... A) Board of Directors. B) CEO/GM/President. C) Shareholders. D) Chairman of the Board. Show Answer Correct Answer: A) Board of Directors. 58. Disadvantages include limited life and the potential for conflict between partners A) Sole Propriotorship. B) Partnership. C) Corporation. D) None of the above. Show Answer Correct Answer: B) Partnership. 59. What is a disadvantage of a Company? A) Going concern. B) More capital to run the business. C) Limited liability. D) Many procedures to set up. Show Answer Correct Answer: D) Many procedures to set up. 60. Partnership deed defines oral agreement among partners A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. ← 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