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 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 2 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. From the following which is a disadvantages of being a sole trader? A) Does not have to share these profits. B) Few legal regulations. C) Unlimited liability. D) Freedom to choose his own holidays. Show Answer Correct Answer: C) Unlimited liability. 2. Whichofthefollowingisanadvantageof operatingalargeestablishedbusiness as a limited company? A) Owners have unlimited liability. B) Sharescan be sold to the public to raise additionalfinance. C) Financialaccountsare published. D) Sharescan only be sold to invitedinvestorstoraise finance. Show Answer Correct Answer: B) Sharescan be sold to the public to raise additionalfinance. 3. Disadvantages of this type of business include:parent company is strict, you are limited in what you sell, and you must operate like every other franchise. A) Corporation. B) Franchise. C) Partnership. D) Sole Proprietorship. Show Answer Correct Answer: B) Franchise. 4. The skill of generating new ideas is termed as: A) Entrepreneurship. B) Creativity. C) Innovation. D) Invention. Show Answer Correct Answer: B) Creativity. 5. Minimum number of members to form a public company is ..... A) 50. B) 10. C) 7. D) 2. Show Answer Correct Answer: C) 7. 6. Which is NOT a demerit of HUF business A) Unlimited liability of Karta. B) Limited Resouces. C) Increased loyalty from all members. D) Dominance of Karta in decision making. Show Answer Correct Answer: C) Increased loyalty from all members. 7. Usually, partnerships have ..... A) Unlimited partners. B) 2 to 20 partners. C) Mora than 50 partners. D) 2 to 4 partners. Show Answer Correct Answer: B) 2 to 20 partners. 8. Which one NOT a content of Partnership Deed A) Nature and location of Busuness. B) Profit sharing ratio. C) Capital contribution of each partners. D) List of Personal Property of partners. Show Answer Correct Answer: D) List of Personal Property of partners. 9. Hindu Undivided Family Business is governed by ..... Act A) Sole Proprietorship Act. B) Hindu Marriage Act. C) Partnership Act. D) Hindu Succession Act. Show Answer Correct Answer: D) Hindu Succession Act. 10. What is a limitation of a Joint Hindu Family Business? A) Limited capital. B) Unlimited liability of Karta. C) Hasty decisions. D) All of the above. Show Answer Correct Answer: D) All of the above. 11. Rohit is setting up a coaching institute. Which of the following factors related to starting of business will be NOT considered by Rohit? A) Location of the institute. B) Pricing of the courses offered. C) Layout of the classrooms & reception area. D) Whether to set up a partnership or sole proprietorship. Show Answer Correct Answer: B) Pricing of the courses offered. 12. Online Registration portal for Partnership Firms in Kerala is called as ..... A) E DROPS. B) E FIRMS. C) E POSTS. D) E GROOPS. Show Answer Correct Answer: D) E GROOPS. 13. In which business enterprises person get full profit and he alone bears risk: A) Sole Proprietor. B) Joint Hindu Family. C) Partnership. D) Cooperative Society. Show Answer Correct Answer: A) Sole Proprietor. 14. Which form of organisation is suitable if direct control over operations & absolute decision making power is required in business? A) Cooperative society. B) Joint Stock Co. C) Sole proprietorship. D) HUF. Show Answer Correct Answer: C) Sole proprietorship. 15. Advantages of this business type are that the owner is their own boss and gets to keep all the profits. A) Partnership. B) Private limited company. C) Sole Proprietorship. D) Franchise. Show Answer Correct Answer: C) Sole Proprietorship. 16. Which of the following is not a common characteristics between different types of organisations. A) Collective Goals. B) Profit Maximisation. C) Controlled Performance. D) Social Arrangement. Show Answer Correct Answer: B) Profit Maximisation. 17. Identify the type of cooperative society highlighted in the given statement. "It is formed by those who want to procure residential accomodation at lower costs '' A) Marketing cooperative society. B) Cooperative housing society. C) Consumers cooperative society. D) Credit cooperative society. Show Answer Correct Answer: B) Cooperative housing society. 18. A concept which states that the transactions of the business must be distinguished and differentiated from the transactions of the owners is called ..... A) Business entity concept. B) Business permit concept. C) Business tax concept. D) Business financial report concept. Show Answer Correct Answer: A) Business entity concept. 19. No paperwork (charter or agreement) is required to start which type of business? A) Corporation. B) Franchise. C) Partnership. D) Sole Proprietorship. Show Answer Correct Answer: D) Sole Proprietorship. 20. Which of the following is NOT a type of partner? A) Independent partner. B) Active partner. C) Sleeping partner. D) Secret partner. Show Answer Correct Answer: A) Independent partner. 21. Partners who are only responsible up to the extent of their investment A) Special partnership. B) Trading partnership. C) Non-trading partnership. D) Limited partnership. Show Answer Correct Answer: D) Limited partnership. 22. This type of business is owned by many people called shareholders. A) Partnership. B) Franchise. C) Sole Proprietorship. D) Joint Stock Company. Show Answer Correct Answer: D) Joint Stock Company. 23. Capital clause specifies- A) Subscribed capital. B) Issued capital. C) Paid up capital. D) Authorised capital. Show Answer Correct Answer: D) Authorised capital. 24. Carrying out staff training is done by ..... A) Human Resources. B) Marketing. C) All the above. D) None of the above. Show Answer Correct Answer: A) Human Resources. 25. ..... are payments made to shareholders from the profits (after tax) ofa company. A) Salaries. B) Bonuses. C) Interests. D) Dividends. Show Answer Correct Answer: D) Dividends. 26. Which is FALSE in repect of Partnership A) Joint and Several Liability. B) Each partner is an agent and principal for each others. C) Decision making through mutual consent anf joint effort. D) Continuity of Partnership will be there. Show Answer Correct Answer: D) Continuity of Partnership will be there. 27. The cooperative society lays emphasis on ..... motive. A) PROFIT MOTIVE. B) SERVICE MOTIVE. C) All the above. D) None of the above. Show Answer Correct Answer: B) SERVICE MOTIVE. 28. What impact does the expansion of industrial and trading activities by MNCs (Multinational Companies) have on host countries? A) Decreased standard of living. B) Limited employment opportunities. C) Creation of employment opportunities. D) Reduced foreign exchange reserves. Show Answer Correct Answer: C) Creation of employment opportunities. 29. What is the liability of a sleeping partner? A) Shared liability. B) No liability. C) Unlimited liability. D) Limited liability. Show Answer Correct Answer: D) Limited liability. 30. The existence of a society is not affected by the death, insanity, insolvency etc. True or False A) False. B) True. C) All the above. D) None of the above. Show Answer Correct Answer: B) True. 31. Which one of these statements about sole traders is false? A sole trader ..... A) Still have to pay tax on profits earned. B) Can only have one employee. C) Is relatively cheap and easy to set up. D) Has unlimited liability. Show Answer Correct Answer: B) Can only have one employee. 32. What responsibility does the government hold in a Public Private Partnership (PPP)? A) No responsibility. B) Responsibility for profits. C) Responsibility for costs and quality. D) Responsibility for private sector decisions. Show Answer Correct Answer: C) Responsibility for costs and quality. 33. Partnership is the relation which subsists between persons who have agreed to combine their property, labour or skill in some business and to share the profits therefrom between them. A) True. B) False. C) Partially True. D) None of these. Show Answer Correct Answer: A) True. 34. What is a disadvantage of a partnership? A) Limited liability. B) Owners share responsibilities. C) Possibility of personality conflict. D) Ease of formation. Show Answer Correct Answer: C) Possibility of personality conflict. 35. In partnership firm, the liability of every partner is limited, joint & several. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 36. What is the partnership written agreement known as? A) Partnership deed. B) Agreement. C) Partnership Act. D) Partnership contract. Show Answer Correct Answer: A) Partnership deed. 37. Debenture holders are the company's A) Owners. B) Creditors. C) Debtors. D) Borrowers. Show Answer Correct Answer: B) Creditors. 38. Economic activities may be classified into business, ..... and employment A) Profession. B) Occupation. C) Vocation. D) Work. Show Answer Correct Answer: A) Profession. 39. A corporation can continue to exist after the death of its owners A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 40. Meaning of Unlimited liability is A) Unlimited payment is to be done. B) Unlimited time for business. C) Unlimited resources may be use. D) Personal property of proprietor will be use to pay business debt. Show Answer Correct Answer: D) Personal property of proprietor will be use to pay business debt. 41. Liability of members in HUF is A) Limited. B) Unlimited. C) Not specified. D) None of the above. Show Answer Correct Answer: A) Limited. 42. Sole proprietor bears profit and loss individually. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 43. Which partner allows the use of his goodwill to benefit the firm and can be represented as a partner? A) Secret partner. B) Active partner. C) Nominal partner. D) Sleeping partner. Show Answer Correct Answer: C) Nominal partner. 44. Promoter is one who A) Arrange the resources for business. B) Get approval for name. C) Conceive business idea. D) All of above. Show Answer Correct Answer: D) All of above. 45. Profit do not have to be shared. This statement refers to: A) Company. B) Joint hindu family business. C) Partnership. D) Sole Proprietorship. Show Answer Correct Answer: D) Sole Proprietorship. 46. Business does not enjoy perceptual succession A) Partnership. B) Company. C) Cooperative society. D) None of the above. Show Answer Correct Answer: A) Partnership. 47. They have a separate legal identity to their owners. A) Incorporated businesses. B) Unincorporated businesses. C) All the above. D) None of the above. Show Answer Correct Answer: A) Incorporated businesses. 48. If people join hands for the purpose of some charitable activity, it will not be termed as Partnership. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 49. The documents for registration of a company were filed on 21st March, 2021. The Certificate of Incorporation was issued on 28th March, 2021. But the date mentioned on the Certificate of Incorporation was 27th March, 2021. From which date will the company be considered to be in existence and the contracts signed will be considered valid. A) 21st March, 2021. B) 28th March, 2021. C) 27th March, 2021. D) None of these. Show Answer Correct Answer: C) 27th March, 2021. 50. The eldest person of the HUF is known as Coparcener. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 51. In which of the following forms there exists no sharing of profit or loss? A) Joint stock Company. B) Hindu Undivided Family. C) Partnership. D) Sole Proprietorship. Show Answer Correct Answer: D) Sole Proprietorship. 52. What is a characteristic of a Private Company? A) Limited number of shareholders. B) Shares are publicly traded. C) Unlimited liability. D) No legal entity. Show Answer Correct Answer: A) Limited number of shareholders. 53. Allows a business to operated under the name of an already existing brand. A) A sole trader. B) A partnership. C) Private limited company. D) A franchise. Show Answer Correct Answer: D) A franchise. 54. 'A company will remain even if all its members die." Which feature of the company does this statement signify: A) Limited Liability. B) Professional Management. C) Transfer of Interest. D) Perpetual Existence. Show Answer Correct Answer: D) Perpetual Existence. 55. All of the following partners do not contribute capital to the firm but bear an unlimited liability towards the third party, except: A) Nominal partners. B) Partner by estoppel. C) Secret partner. D) Partner by holding out. Show Answer Correct Answer: C) Secret partner. 56. State True or False:Personal satisfaction is a character of Non-Economic activity A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 57. A sole trading concern ensures ..... business secrecy. A) Maximum. B) Minimum. C) Limited. D) Certain. Show Answer Correct Answer: A) Maximum. 58. All decisions of a HUF are made by A) All members. B) Karta. C) Karta and all senior co parceners. D) By all co parceners. Show Answer Correct Answer: B) Karta. 59. A portion of a company's earnings distributed to its shareholders. A) Income. B) Dividend. C) Earning. D) Profit. Show Answer Correct Answer: B) Dividend. 60. Name the occupation in which people work for others and get remunerated in return A) Business. B) Profession. C) Employment. D) None of the above. Show Answer Correct Answer: C) Employment. ← 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 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