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 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 13 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Where does the money used by public enterprises come from? A) Private investors. B) Taxpayers. C) Foreign governments. D) International organisations. Show Answer Correct Answer: B) Taxpayers. 2. Lifting corporate veil is ..... A) A principle that will protect members and officers from being liable to debts and obligations of the company. B) An action where the separation of the company from its members is no longer available. C) Contents in Constitution that inconsistent with Companies Act 2016. D) None of the above. Show Answer Correct Answer: B) An action where the separation of the company from its members is no longer available. 3. This type of business is owned by two or more people. A) Franchise. B) Partnership. C) Sole Proprietorship. D) Corporation. Show Answer Correct Answer: B) Partnership. 4. As a result of the concept of limited liability, shareholders of an incorporated business: A) Can sue the business if unhappy. B) Are limited in the dividends that can be paid. C) Have limited control over business decisions. D) Are only liable for their investment. Show Answer Correct Answer: D) Are only liable for their investment. 5. ..... sector is concerned with the extraction or generation of products from the earth. A) Primary Sector. B) Quaternary Sector. C) Secondary Sector. D) Tertiary sector. Show Answer Correct Answer: A) Primary Sector. 6. What is one advantage of franchising for the franchisee? A) Higher profits. B) Complete independence. C) Lower risk of failure. D) No fees to pay. Show Answer Correct Answer: C) Lower risk of failure. 7. Which of the following is a feature of a Cooperative Society? A) Voluntary membership. B) Profit motive. C) Unlimited liability. D) Single ownership. Show Answer Correct Answer: A) Voluntary membership. 8. Name the law which governs joint Hindu family A) Family law. B) Muslim law. C) Hindu law. D) All of the above. Show Answer Correct Answer: C) Hindu law. 9. Sonam, Ritu and Sazia wish to start a partnership. They got a document prepared, which stated the terms and conditions in order to run the partnership organization. Identify the document prepared. A) Partnership Notice. B) Partnership Declaration. C) Partnership Agreement. D) Partnership Deed. Show Answer Correct Answer: D) Partnership Deed. 10. Name the partner who does not contribute capital for business but held liable to outsiders. A) Partner by estoppel. B) Dormant Partner. C) Active Partner. D) Secret Partner. Show Answer Correct Answer: A) Partner by estoppel. 11. Disadvantages for this type of business include:owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability. A) Franchise. B) Sole Proprietorship. C) Partnership. D) Company. Show Answer Correct Answer: B) Sole Proprietorship. 12. Which of the following terms is not used by Mintzberg in his description of organisational structure? A) Support base. B) Operating core. C) Strategic apex. D) Technostructure. Show Answer Correct Answer: A) Support base. 13. If a public limited company is NOT preparing the Articles of Association, it can adopt A) Table A. B) Table B. C) Table F. D) Table E. Show Answer Correct Answer: C) Table F. 14. On the basis of duration partnership is divided into. A) . 4. B) . 2. C) . 5. D) . 6. Show Answer Correct Answer: B) . 2. 15. Harry owns a small computer repair shop. To attract more customers, he decided to upgrade software in his shop. His father told him to upgrade the shop later, but Harry was stubborn about his decision and decided to to do what he wants with his shop as he owns it. What is the advantage of sole proprietorship discussed here? A) Freedom of choice of business. B) Unlimited liability of the owner. C) Ease of formation. D) Prompt decision making. Show Answer Correct Answer: C) Ease of formation. 16. Tesco is a ..... A) Sole Trader. B) Public Limited Company. C) Private Limited Company. D) Franchise. Show Answer Correct Answer: B) Public Limited Company. 17. Owners of this type of organization may receive dividends. A) Corporation. B) Franchise. C) Partnership. D) Sole proprietorship. Show Answer Correct Answer: A) Corporation. 18. This type of business is owned by one person. A) Sole Proprietorship. B) Corporation. C) Partnership. D) Franchise. Show Answer Correct Answer: A) Sole Proprietorship. 19. Which of the following organisation has donations as a source of finance? A) Banks. B) Multi National Corporation. C) Manufacturing Organisation. D) NGO. Show Answer Correct Answer: D) NGO. 20. What are the advantages of a sole proprietorship? A) Limited liability, complex tax filing, and extensive legal requirements. B) Shared control and decision-making power, complex tax filing, and extensive legal requirements. C) Limited liability, simplified tax filing, and extensive legal requirements. D) Complete control and decision-making power, simplified tax filing, and minimal legal requirements. Show Answer Correct Answer: D) Complete control and decision-making power, simplified tax filing, and minimal legal requirements. 21. Why is it essential to make a profit in business? A) The possibilities of inadequate. B) To increases the reputation of a company. C) To provide funds for future extension. D) To provide return to investors. Show Answer Correct Answer: D) To provide return to investors. 22. Name the document that specify the company relation with outside world. A) Consent of Proposed directors. B) Article of Association. C) Prospectus. D) Memorandum of Association. Show Answer Correct Answer: D) Memorandum of Association. 23. What type of liability do partners in a Partnership have? A) Conditional liability. B) Limited liability. C) Unlimited liability. D) No liability. Show Answer Correct Answer: C) Unlimited liability. 24. Article of association includes A) The details of internal running of the business. B) The detailed personal database of the company's employees. C) General details of the company and its constitutions. D) The details of owner's personal assets and belongings. Show Answer Correct Answer: A) The details of internal running of the business. 25. Which of the following is an advantage of the corporation as a form of business ownership: A) Less complex requirements. B) Separate owners and managers. C) Limited liability. D) High Taxes. Show Answer Correct Answer: C) Limited liability. 26. Shareholders recieve a share of the profits a LTD makes called a A) Dividend. B) Cash Prize. C) Commission. D) Bonus. Show Answer Correct Answer: A) Dividend. 27. Most expensive to start A) Sole Proprietorship. B) Partnership. C) Corporation. D) None of the above. Show Answer Correct Answer: C) Corporation. 28. The best definition of a sole trader is a business that A) Is owned by one person. B) Is a single firm in the industry. C) Only employs one person. D) Has a single customer. Show Answer Correct Answer: A) Is owned by one person. 29. Registration of partnership is compulsory. ( True / False) A) False. B) True. C) All the above. D) None of the above. Show Answer Correct Answer: A) False. 30. In Sole Proprietorship business Control and ownership are separate for the owner A) True. B) False. C) Partially True. D) None of the above. Show Answer Correct Answer: A) True. 31. If the owners of a partnership take out a loan they responsible for the loan. A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 32. Which of the following statements about co-operative business organizations is true? A) All co-operatives are only concerned with retailing. B) Profits are shared equally amongst members. C) They are owned by shareholders. D) Workers have no say in decision-making. Show Answer Correct Answer: B) Profits are shared equally amongst members. 33. ..... have to put up resources-money or credit-to start a business A) Owners. B) Customers. C) Employees. D) None of the above. Show Answer Correct Answer: A) Owners. 34. Identify the society formed by the financially poor people of Nand Nagri. A) Consumers' Cooperative Society. B) Producers' Cooperative Society. C) Marketing Cooperative Society. D) Cooperative Credit Society. Show Answer Correct Answer: D) Cooperative Credit Society. 35. Who issues the certificate of Incorporation? A) Shareholder. B) Auditor. C) Director. D) Registrar. Show Answer Correct Answer: D) Registrar. 36. Which type of business organisation is the most popular and suitable for Small business. A) Cooperative society. B) Partnership. C) Joint Hindu Family. D) Sole Proprietorship. Show Answer Correct Answer: D) Sole Proprietorship. 37. What is the capital contribution in a Partnership based on? A) Random selection. B) Equal shares. C) Government rules. D) Agreed ratio. Show Answer Correct Answer: D) Agreed ratio. 38. Y plc is a growing organisation which has recently diversified into a number of significant new productmarkets. It has also recently acquired another company in one of its overseas markets.What would be the most appropriate form of organisation for Y plc? A) Geographical departmentation. B) Divisionalisation. C) Functional Departmentation. D) None of the above. Show Answer Correct Answer: B) Divisionalisation. 39. Which business depends on just one person for the skills and talents to run the business? A) Sole Proprietorship. B) Partnership. C) Franchise. D) Corporation. Show Answer Correct Answer: A) Sole Proprietorship. 40. Which of the following item is considered as retained earnings? A) Debenture Capital. B) Equity Capital. C) Borrowed Capital. D) Self Financing. Show Answer Correct Answer: D) Self Financing. 41. At least 10 members are required to form ..... A) Patnership. B) Cooperative Society. C) Joint stiock company. D) All of the above. Show Answer Correct Answer: B) Cooperative Society. 42. A particular partnership firm can most likely be dissolved with A) Fulfillment of the firm's purpose. B) Decision of the Court. C) Application of the firm's creditors. D) Will of the partners. Show Answer Correct Answer: A) Fulfillment of the firm's purpose. 43. Private Limited Companies have A) Limited Liability. B) Unlimited Liability. C) All the above. D) None of the above. Show Answer Correct Answer: A) Limited Liability. 44. If the owners of a partnership take out a loan they are personally responsible for the loan. A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 45. Registration of partnership firm is ..... in Maharashtra. A) Easy. B) Compulsory. C) Lengthy. D) Voluntary. Show Answer Correct Answer: B) Compulsory. 46. A ..... must name a board of directors that will make the major policy and financial decisions for the business. A) Limited liability partnership. B) Limited liability company. C) Corporation. D) Proprietorship. Show Answer Correct Answer: C) Corporation. 47. Identify the form of organisation in which minors can also be members. A) Joint Hindu Undivided Business. B) Partnership. C) Cooperative Society. D) Public Company. Show Answer Correct Answer: A) Joint Hindu Undivided Business. 48. X, Y and Z are partners in a firm. All three of them handle different departments as they have expertise in those areas. They all equally share their duties and control the business operations which help in smooth working of the firm. Which feature of partnership is highlighted here? A) Membership. B) Continuity. C) Decision making and Control. D) Mutual Agency. Show Answer Correct Answer: C) Decision making and Control. 49. A company which comes in to existence by a special act of the parliament or legislature is called A) A.Chartered companies. B) C.Registered companies. C) D.Statutory companies. D) None of the above. Show Answer Correct Answer: C) D.Statutory companies. 50. LLP stands for ..... A) Limited Labour Partnership. B) Linked Liability Partnership. C) Limited Liability Partnership. D) Liked Liability Partneership. Show Answer Correct Answer: C) Limited Liability Partnership. 51. A proprietor directly gets the benefits of his efforts as he is the sole recipient of all the profits. Identify the merit. A) Sole earner. B) Direct Incentive. C) Profit making. D) Profit recipient. Show Answer Correct Answer: B) Direct Incentive. 52. In which of the following classification of trade? A) Retail Trade. B) Internal Trade. C) Wholesale Trade. D) Exports. Show Answer Correct Answer: B) Internal Trade. 53. Public limited companies are usually large, well-known businesses, set up by at least two ..... A) Franchisees. B) Shareholders. C) Members. D) None of the above. Show Answer Correct Answer: B) Shareholders. 54. What are the different types of partnerships? A) Business partnerships. B) Strategic partnerships. C) General partnerships, limited partnerships, limited liability partnerships, and joint ventures. D) Corporate partnerships. Show Answer Correct Answer: C) General partnerships, limited partnerships, limited liability partnerships, and joint ventures. 55. This type of company has a maximum of fifty (50) shareholders A) Public Unlimited. B) Private Limited. C) Public Limited. D) Private Unlimited. Show Answer Correct Answer: B) Private Limited. 56. Name the partnership in which partners can close partnership by giving notice. A) Particular Partnership. B) General Partnership. C) Limited Liability Partnership. D) Partnership at will. Show Answer Correct Answer: D) Partnership at will. 57. What is the smallest amount of money a private company must have as share capital? A) Ten thousand rupees. B) Fifty thousand rupees. C) One lakh rupees. D) Five lakh rupees. Show Answer Correct Answer: C) One lakh rupees. 58. She not is a shareholder in a company holding 10, 000 shares of Rs.10 each on which he has already paid Rs.8 per share. What will be his liability in the event of losses or company's failure to pay debts? A) Rs.20, 200. B) Rs.21, 000. C) Rs. 22, 000. D) Rs.20, 000. Show Answer Correct Answer: D) Rs.20, 000. 59. Preliminary contracts are: A) Binding on the company. B) Binding on the company, if ratified after incorporation. C) Not binding on the company. D) Binding on the company, after incorporation. Show Answer Correct Answer: B) Binding on the company, if ratified after incorporation. 60. According to the Indian Partnership Act, 1932, the partners may get the firm registered with the ..... of the state in which the firm is situated. A) Registrar office. B) Registrar of firms. C) Registrar of partners. D) Registrar of company. Show Answer Correct Answer: B) Registrar of firms. ← 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