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 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 12 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Identify the merit of Sole Proprietorship-There is a personal satisfaction involved in working for oneself. A) Sense of confidence. B) Sense of satisafaction. C) Sense of achievement. D) Sense of accomplishment. Show Answer Correct Answer: D) Sense of accomplishment. 2. What is the liability status of a Sole Proprietorship? A) Limited liability. B) Shared liability. C) Unlimited liability. D) No liability. Show Answer Correct Answer: C) Unlimited liability. 3. Which type of business organisation is easy to form and there is no separate low for A) Cooperative society. B) Joint Hindu Family. C) Sole Proprietorship. D) Partnership. Show Answer Correct Answer: C) Sole Proprietorship. 4. Oligarchic management is related to which form of business organisation? A) Cooperative society. B) Company. C) Hindu undivided family business. D) Partnership. Show Answer Correct Answer: B) Company. 5. Chandramukhi purchased 250 shares of Great Company Limited, the face value of shares being ₹ 100. The company has called ₹ 80 per share till date, and all such amounts as called by company, have been paid by Chandramukhi. What is the liability of Chandramukhi now? A) Unlimited Liability. B) Rs. 5000. C) Rs. 25, 000. D) Rs. 20, 000. Show Answer Correct Answer: B) Rs. 5000. 6. Maximum number of partners in Partnership business as per Companies Act A) 100. B) 20. C) 10. D) 50. Show Answer Correct Answer: D) 50. 7. Kerala co-operative societies Act was passed in the year ..... A) 1960. B) 1956. C) 1979. D) 1969. Show Answer Correct Answer: D) 1969. 8. Capital of a company is divided in to small units called ..... A) Drafts. B) Debentures. C) Shares. D) Coupons. Show Answer Correct Answer: C) Shares. 9. Who issues a certificate of registration to a firm A) State government. B) Central government. C) Registrar of firms. D) None of the above. Show Answer Correct Answer: C) Registrar of firms. 10. Application for approval of name of a company is to be made to ..... A) Government of the State in which Company is to be registered. B) SEBI. C) Government of India. D) Registrar of Companies. Show Answer Correct Answer: D) Registrar of Companies. 11. How is a general partnership organized? A) Every partner shares equally in both responsibility and liability. B) The doctors, lawyers, or accountants who form a general partnership hire others to run the partnership. C) No partner is responsible for the debts of the partnership beyond his or her investment. D) Only one partner is responsible for the debts of the partnership. Show Answer Correct Answer: A) Every partner shares equally in both responsibility and liability. 12. What is the first stage of company formation A) Promotion. B) Incorporation. C) Sole proprietorship. D) Subscription of capital. Show Answer Correct Answer: A) Promotion. 13. Business is solely concerned with the production of goods. A) A. True. B) B. False. C) All the above. D) None of the above. Show Answer Correct Answer: B) B. False. 14. What is the stage that immediately follows ideation in an entrepreneurial journey? A) Validation. B) Prototyping. C) Commercialisation. D) Testing. Show Answer Correct Answer: B) Prototyping. 15. General partner has A) Limited liability. B) Unlimited liability. C) None of the above. D) All of the above. Show Answer Correct Answer: B) Unlimited liability. 16. How many types of Cooperative Societies are there: A) 2. B) 4. C) 6. D) 8. Show Answer Correct Answer: C) 6. 17. In Private Ltd. company can the allotment of shares be done without receiving minimum subscription? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 18. The management of this form of business organisation is in the hands of boards of directors A) Partnership. B) Joint stock company. C) Joint Hindu family. D) Cooperative societies. Show Answer Correct Answer: B) Joint stock company. 19. The main reason why the owners of many private limited companies convert their businesses into public limited companies is because: A) They do not want to remain in the private sector. B) They want to gain the benefits of limited liability. C) They want to keep the annual accounts secret. D) They want to raise additional capital to expand the business. Show Answer Correct Answer: D) They want to raise additional capital to expand the business. 20. ..... is a type of business unit where a person is solely responsible for providing the capital. A) Partnership. B) Cooperative societies. C) Joint hindu family business. D) Sole proprietorship. Show Answer Correct Answer: D) Sole proprietorship. 21. The written agreement between partners are called as ..... A) Partnership Articles. B) Partnership Deed. C) Partnership Document. D) Partnership Charter. Show Answer Correct Answer: B) Partnership Deed. 22. A minor shares both profit and losses of partnership firm A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 23. Partnership Act was passed in the year ..... A) 1956. B) 1986. C) 2013. D) 1932. Show Answer Correct Answer: D) 1932. 24. McDonald's and Burger King are examples of ..... A) Sole Proprietorships. B) Partnerships. C) Franchises. D) Corporations. Show Answer Correct Answer: C) Franchises. 25. I inform the creditors and outsider what the company is permitted to do. Who am I? A) Liability Clause. B) Capital Clause. C) Domicile Clause. D) Objects Clause. Show Answer Correct Answer: D) Objects Clause. 26. One of the reasons for a business buying a franchise is because: A) The business can use its own name in advertisements. B) There is complete control over important decisions. C) It is always much cheaper than setting up a new business venture. D) The risks of failure are lower as it is buying a well known business idea. Show Answer Correct Answer: D) The risks of failure are lower as it is buying a well known business idea. 27. Which of the following laws governs partnership form of business organisation A) Indian Partnership Act, 1950. B) Indian partnership Act 1932. C) Indian Patnership Act, 1952. D) Indian Partnership Act, 1930. Show Answer Correct Answer: B) Indian partnership Act 1932. 28. Which is NOT a demerit of Sole Preprietorship A) Unlimited liability. B) Limited managerial ability. C) Unlimited resources. D) Limited life of business. Show Answer Correct Answer: C) Unlimited resources. 29. Statement in lieu of prospectus can be filed by a public company going for a public issue. A) False. B) True. C) All the above. D) None of the above. Show Answer Correct Answer: A) False. 30. The life span of sole proprietorship is ..... A) Stable. B) Unstable. C) Permenant. D) All of the above. Show Answer Correct Answer: B) Unstable. 31. District Industries Centres was set up in A) May 1978. B) April 1978. C) March 1978. D) May 1987. Show Answer Correct Answer: A) May 1978. 32. Large financial resources A) Partnership. B) Joint Hindu Family Business. C) Cooperative Societies. D) Joint Stock Company. Show Answer Correct Answer: D) Joint Stock Company. 33. The minimum number of partners allowed in banking business ..... A) 2. B) 10. C) No limit. D) 20. Show Answer Correct Answer: A) 2. 34. Which of the following forms is the most suitable if separation of ownership with that of management is to be ensured? A) Cooperative Society. B) Partnership. C) Joint Stock Company. D) Hindu Undivided Family business. Show Answer Correct Answer: C) Joint Stock Company. 35. Minors can also become members of this form of business A) Cooperative societies. B) Joint Hindu family. C) Sole proprietor ship. D) Partnership. Show Answer Correct Answer: B) Joint Hindu family. 36. Which statement can be associated with the characteristics of a private company? A) It allows transfer of shares. B) It restricts transfer of shares. C) It sells shares to investors. D) It issues shares to the public. Show Answer Correct Answer: B) It restricts transfer of shares. 37. Whih is NOT correct in respect of sleeping partner A) Shares Profits or Losses. B) Actively participates in the management of firm. C) Contributes Capital. D) Unlimited Liability. Show Answer Correct Answer: B) Actively participates in the management of firm. 38. The structure in which there is sepration of ownership and management is called ..... A) Joint Stock Company. B) Sole proprietorship. C) Both A and B. D) NOne of the above. Show Answer Correct Answer: A) Joint Stock Company. 39. Legislations governing the ownership and use of creative mind. A) Copyright, trademark, and patent laws. B) Trade secrets and non-disclosure agreements. C) Employment contracts and labor laws. D) Consumer protection and safety regulations. Show Answer Correct Answer: A) Copyright, trademark, and patent laws. 40. The co-operative society is compulsory required to be registered under the cooperative societies act A) 1952. B) 1956. C) 1932. D) 1912. Show Answer Correct Answer: D) 1912. 41. What percentage of the profits in sole proprietorship is the owner designated to? A) 54%. B) 75%. C) 100%. D) 0%. Show Answer Correct Answer: C) 100%. 42. In a ..... partnership, at least one of the partners in the business must have unlimited liability. A) A limited. B) An unlimited. C) A private. D) None of the above. Show Answer Correct Answer: A) A limited. 43. Partnership agreement must be oral. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 44. Which form of business organisation is discussed in the above case? A) Sole proprietorship. B) Joint stock company. C) Cooperative organisation. D) Partnership. Show Answer Correct Answer: C) Cooperative organisation. 45. Previous companies Acts does NOT include ..... A) Indian Companies Act 1882. B) Indian Comanies Act of 1913. C) Companies Act 2013. D) Companies Act 1956. Show Answer Correct Answer: C) Companies Act 2013. 46. The disadvantages of this business organization include unlimited liability, difficulty raising financial capital, difficulty attracting qualified employees, and having a limited life A) Sole Propriotorship. B) Partnership. C) Corporation. D) None of the above. Show Answer Correct Answer: A) Sole Propriotorship. 47. What is the minimum number of members which are required to form a cooperative society? A) 20. B) 10. C) 7. D) 2. Show Answer Correct Answer: B) 10. 48. ..... activities are primarily meant for monetary gains or for making profits. A) Charitable activity. B) Non Economic activity. C) Social Activity. D) Economic activity. Show Answer Correct Answer: D) Economic activity. 49. An entrepreneur who starts business with the help of natural talents is known as A) Pure entrepreneur. B) Spontaneous entrepreneur. C) Motivated entrepreneur. D) Induced entrepreneur. Show Answer Correct Answer: B) Spontaneous entrepreneur. 50. What is the biggest risk of starting a new business? A) Failing. B) Losing Money. C) Being Successful. D) Making Money. Show Answer Correct Answer: A) Failing. 51. Registration of a partnership business is ..... A) OPTIONAL. B) COMPULSORY. C) All the above. D) None of the above. Show Answer Correct Answer: A) OPTIONAL. 52. Joint Stock company can not raise huge amount of capital. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 53. There is a separation of ownership & management in Joint Stock Company. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 54. In sole proprietorship business operations are confidential and secret. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 55. The board of directors of a joint stock company is elected by A) Employees. B) General public. C) Shareholders. D) Government bodies. Show Answer Correct Answer: C) Shareholders. 56. Name the act that grants equal coparcenery rights to girl child of the family. A) Indian Partnership Act, 1932. B) Companies Act, 2013. C) Hindu succession Act, 1956. D) Hindu Succession act, 2005. Show Answer Correct Answer: D) Hindu Succession act, 2005. 57. Every partner acts in the capacity of- A) An agent as well as a principal. B) Only an agent of the firm. C) Only principal of the firm. D) None of the above. Show Answer Correct Answer: A) An agent as well as a principal. 58. The easiest form of business to start and end is a(n) A) Limited liability partnership. B) Proprietorship. C) Franchise. D) S corporation. Show Answer Correct Answer: B) Proprietorship. 59. Which is NOT TRUE about Limited Partnership A) Registration of Partnership is Optional. B) Other partners liability can be limited. C) Death of limited partners will not affect the continuity of the firm. D) Liability of at least one partner is Unlimited. Show Answer Correct Answer: A) Registration of Partnership is Optional. 60. Sole Traders, Partnerships and Private Limited Companies are in which sector of the Economy? A) Private Sector. B) Public Sector. C) Third Sector. D) None of the above. Show Answer Correct Answer: A) Private Sector. ← 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