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 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 3 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. One of the advantages to a business of selling a franchise licence to franchisees is that: A) The business can expand more quickly. B) The franchisor owns all of the shops. C) The businesses buying the franchises are certain to be successful. D) The products sold in each shop will be different. Show Answer Correct Answer: A) The business can expand more quickly. 2. MUDRA Loan is provided up to A) 5 lakh (500, 000) Indian Rupees. B) 15 lakh (1.5 million) Indian Rupees. C) 20 lakh (2 million) Indian Rupees. D) 10 lakh (1 million) Indian Rupees. Show Answer Correct Answer: D) 10 lakh (1 million) Indian Rupees. 3. The existence of ..... partner is not known to public. A) Active. B) Dormant. C) Secret. D) None of these. Show Answer Correct Answer: C) Secret. 4. A ..... is a business in the public sector that is owned and controlled by the state. A) Public corporation. B) Sole trade. C) Public limited company. D) Private limited company. Show Answer Correct Answer: A) Public corporation. 5. Registration of General Partnership Firm will be done by ..... A) Registrar of Companies. B) Registrar of Firm. C) Registrar og Industries. D) Registrar of Co-operative Societies. Show Answer Correct Answer: B) Registrar of Firm. 6. Is it mandatory for a sole proprietor to obtain license? A) Yes. B) No. C) Depends on the situation. D) None of the above. Show Answer Correct Answer: B) No. 7. The liability of all the co-parceners except the ..... is limited to their share in the business, and consequently their risk is well-defined and precise. A) Karta. B) Partners. C) Members. D) Eldest Co-parcener. Show Answer Correct Answer: A) Karta. 8. Mention the maximum number of partners in partnership and under which Act it is mention. A) 100, Indian Partnership Act 1945. B) 50, Companies Act 2013. C) 50, Indian Partnership Act, 1932. D) 100, Companies Act 2015. Show Answer Correct Answer: B) 50, Companies Act 2013. 9. What must a Partnership have to reduce misunderstandings? A) A verbal agreement. B) A government license. C) No agreement needed. D) A written agreement. Show Answer Correct Answer: D) A written agreement. 10. Which of the following statements about most public limited companies is true? A) They are owned and controlled by the workers. B) They are owned by the directors but controlled by the shareholders. C) The are owned by shareholders but controlled by directors. D) They are owned and controlled by the government. Show Answer Correct Answer: C) The are owned by shareholders but controlled by directors. 11. Which is a form of business organisation found only in India A) Joint stock company. B) Sole Proprietorship. C) Hindu Undivided Family. D) Partnership. Show Answer Correct Answer: C) Hindu Undivided Family. 12. The karta in joint hindu family business has A) No liability. B) Joint liability. C) Unlimited liability. D) Limited liability. Show Answer Correct Answer: B) Joint liability. 13. Whose liability in a HUF is unlimited A) Co parceners. B) Karta and co parceners. C) Nobody. D) Karta. Show Answer Correct Answer: D) Karta. 14. A shop selling kid's wear is an example of ..... ? A) Single line stores. B) Street shops. C) Specialty stores. D) Street traders. Show Answer Correct Answer: D) Street traders. 15. Advantages of this type of business include:selling stock to raise money, limited liability. A) Sole Proprietorship. B) Limited company. C) Partnership. D) Franchise. Show Answer Correct Answer: B) Limited company. 16. Find out the liability of Kavita in a company. Who is a shareholder, holding 3, 000 shares of Rs. 10 each. She has already paid Rs. 6 per share. A) Rs 10, 000. B) Rs 18, 000. C) Rs. 1, 20, 000. D) Rs. 12000. Show Answer Correct Answer: D) Rs. 12000. 17. Disadvantages of this type of business include:company is taxed on profits, regulated by the government, and hard to start. A) Corporation. B) Franchise. C) Sole Proprietorship. D) Partnership. Show Answer Correct Answer: A) Corporation. 18. The main disadvantage of a ..... is that each person is fully responsible for the acts of all other persons. A) Partnership. B) Franchise. C) Corporation. D) Proprietorship. Show Answer Correct Answer: A) Partnership. 19. What is the primary motive of a Cooperative Society? A) Profit. B) Competition. C) Service. D) Expansion. Show Answer Correct Answer: C) Service. 20. Which one is NOT a feature of company A) Limited liability. B) Body corporate. C) Perpetual succession. D) Natural Person. Show Answer Correct Answer: D) Natural Person. 21. The head of the Joint Hindu family is called A) Karta. B) Propriter. C) Director. D) None of the above. Show Answer Correct Answer: A) Karta. 22. Break-even point is the point at which A) Total revenue equals total costs. B) Total revenue is maximized. C) Total costs are minimized. D) Total revenue exceeds total costs. Show Answer Correct Answer: A) Total revenue equals total costs. 23. What is a feature of a Joint Stock Company? A) Unlimited liability. B) Single ownership. C) No transferability of shares. D) Perpetual succession. Show Answer Correct Answer: D) Perpetual succession. 24. Which of the following are the forms of non-corporate organisations A) Joint Hindu Family. B) Co-operative Society. C) Limited Liability Partnership. D) None of the above. Show Answer Correct Answer: A) Joint Hindu Family. 25. These partners take actual part in carrying out business of the firm on behalf of other partners. A) Secret partners. B) Nominal partners. C) Sleeping or dormant partners. D) Active partners. Show Answer Correct Answer: D) Active partners. 26. What are the merits of a Joint Stock Company? A) Limited Liability. B) Liquidity. C) Tax Benefits. D) All of the above. Show Answer Correct Answer: D) All of the above. 27. ..... is head of JHFB. A) KARTA. B) Member. C) Manager. D) None of these. Show Answer Correct Answer: A) KARTA. 28. Which is TRUE in respect of Active Partner A) Contributes Capital. B) Actively participates in the management of firm. C) Unlimited Liability. D) All of the above. Show Answer Correct Answer: D) All of the above. 29. The best definition of a sole trader form of business organization is: A) The business only employs one person. B) The firm has a single customer. C) The business is owned by one person. D) There is a single firm in the industry. Show Answer Correct Answer: C) The business is owned by one person. 30. ..... are types of business that are owned and controlled by one person. A) Franchises. B) Sole traders. C) Partnerships. D) None of the above. Show Answer Correct Answer: B) Sole traders. 31. A Public Limited Company sells their shares on the ..... A) Stock market. B) Share register. C) Share exchange. D) Grocery store. Show Answer Correct Answer: A) Stock market. 32. A partnership set up for a specific project. A) Particular partnership. B) Partnership at will. C) All the above. D) None of the above. Show Answer Correct Answer: A) Particular partnership. 33. What is an advantage of a franchise? A) It is fast method of growth. B) The cost of supporting franchisees may be high. C) Discounted PAYE tax rates for shareholders. D) Profits are shared with franchisees. Show Answer Correct Answer: A) It is fast method of growth. 34. What type of agreement is used to form a partnership business? A) Written agreement. B) Oral agreement. C) Written or oral agreement. D) None of them. Show Answer Correct Answer: C) Written or oral agreement. 35. What are the advantages of forming a partnership? A) Decreased decision-making power. B) Unlimited liability for all partners. C) Increased competition with other businesses. D) Shared decision-making and resources, shared risks and responsibilities. Show Answer Correct Answer: D) Shared decision-making and resources, shared risks and responsibilities. 36. Identify the type of cooperative society which aims in selling their products by performing various functions. A) Marketing cooperative society. B) Producer cooperative society. C) Selling cooperative society. D) Retailer cooperative society. Show Answer Correct Answer: A) Marketing cooperative society. 37. A type of business organisation where a person is individually responsible for capital, bearing risk and control of management is called ..... A) Sole proprietorship. B) Cooperative society. C) Joint stock company. D) Partnership. Show Answer Correct Answer: A) Sole proprietorship. 38. Which one is a limitation of companies A) Complexity in formation. B) Delay in decision making. C) Numerous regulations. D) All of the above. Show Answer Correct Answer: D) All of the above. 39. Whichlegalstructurewouldanindividualwishingtostart-upasmallbusinesschoose becauseitisquick, easyandinexpensivetosetup? A) Soleproprietorship. B) Privately Held Corporation. C) Partnership. D) Corporation. Show Answer Correct Answer: A) Soleproprietorship. 40. Producer's cooperative society is a society in which small farmers join together and pool their resources for cultivating their land collectively. A) True. B) False. C) Can't say. D) Partially true. Show Answer Correct Answer: B) False. 41. Name the type of cooperative society set up to provide easy credit on reasonable terms to the members. A) Producer cooperative. B) Credit cooperative. C) Housing cooperative. D) None of the above. Show Answer Correct Answer: B) Credit cooperative. 42. Name the partnership in which liability of one partner is limited and the liability of remaining partners unlimited. A) Partnership at will. B) General Partnership. C) Limited Liability Partnership. D) Particular Partnership. Show Answer Correct Answer: C) Limited Liability Partnership. 43. Which of the following is not in the contents of the partnership agreement A) The amount of capital invested in the business by both partner. B) The way in which the profits would be shared out. C) Number of family members and relatives the partners look after. D) How long the partnership would last. Show Answer Correct Answer: C) Number of family members and relatives the partners look after. 44. Partnership at will means ..... A) Partnership exists at the will of partners. B) Firm will continue as long as partners wants. C) Partnership is terminated when any partner gives notice of withdrawal. D) All of the above. Show Answer Correct Answer: D) All of the above. 45. ..... partenr allows to use his / her name to be used in partnership firm as a partner. A) Secret. B) Holding out. C) Active. D) Nominal. Show Answer Correct Answer: D) Nominal. 46. Provision of residential accommodation to the members at reasonable rates is the objective of A) Housing cooperative. B) Credit cooperative. C) Consumers cooperative. D) Producers cooperative. Show Answer Correct Answer: A) Housing cooperative. 47. The cooperative society that is established to help small producers in selling their products. A) Credit cooperative society. B) Consumer's cooperative society. C) Marketing cooperative societies. D) Producer's cooperative societies. Show Answer Correct Answer: C) Marketing cooperative societies. 48. Which is TURE about Nominal Partner A) Shares Profits or Losses. B) Actively participates in the management of firm. C) Contributes Capital. D) Unlimited Liability. Show Answer Correct Answer: D) Unlimited Liability. 49. All of the following are types of feasibility study, except: A) Economic. B) Financial. C) Industrial. D) Technical. Show Answer Correct Answer: C) Industrial. 50. Application for the approval of name of a company is to be made to A) SEBI. B) Government of India. C) Registrar of company. D) Government of the state in which company is to be registered. Show Answer Correct Answer: C) Registrar of company. 51. The terms "industry" and "commerce" can be used interchangeably with "business." A) A. False. B) B. True. C) All the above. D) None of the above. Show Answer Correct Answer: A) A. False. 52. One of the advantages of a partnership is that A) All partners have limited liability. B) Shares can be sold on the Stock Exchange. C) The business can survive the death of the partners. D) The business has access to more capital than a sole trader. Show Answer Correct Answer: D) The business has access to more capital than a sole trader. 53. A company cannot come into existence without: A) Electing Directors. B) Getting certificate of incorporation. C) Issuing a prospectus. D) All of these. Show Answer Correct Answer: B) Getting certificate of incorporation. 54. A nominal partner is the one who A) Contribute capital. B) Shares profit and losses. C) None of the above. D) None of the above. Show Answer Correct Answer: C) None of the above. 55. One of the claimed advantages of a sole trader business is that: A) Owners have limited liability. B) Shares can be sold to raise capital. C) Decisions and responsibilities can be shared. D) The owner has independence. Show Answer Correct Answer: D) The owner has independence. 56. The ..... department is in charge for paying local and national taxes. A) Sales. B) Finance. C) All the above. D) None of the above. Show Answer Correct Answer: B) Finance. 57. When comparing the four main types of business organizations, which protects owners the MOST from personal financial liability due to being sued by a customer? A) Limited Company. B) Franchise. C) Sole Proprietorship. D) Partnership. Show Answer Correct Answer: A) Limited Company. 58. From the following which is an unincorporated business? A) Sole Trader. B) Private Limited Company. C) Public Limited Company. D) None of the above. Show Answer Correct Answer: A) Sole Trader. 59. Who are called the Real owner of the company? A) Shareholders. B) Employees. C) Debenture holders. D) Creditors. Show Answer Correct Answer: A) Shareholders. 60. One of the advantages of a partnership form of business organization is that: A) All partners always have limited liability. B) Shares can be sold on the Stock Exchange. C) The business survives the death of the partners. D) The business has access to more capital than a sole trader. Show Answer Correct Answer: D) The business has access to more capital than a sole trader. ← 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 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