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 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 4 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Sole traders is an unincorporated business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 2. Certificate of commencement of business is required for operating a A) Public company. B) Private company. C) Both of the above. D) None of the above. Show Answer Correct Answer: A) Public company. 3. What socio-economic objective do Public Sector Undertakings (PSUs) primarily focus on? A) Avoiding taxes. B) Maximizing profits. C) Exporting goods. D) Providing services at reasonable prices. Show Answer Correct Answer: D) Providing services at reasonable prices. 4. Maximum number of directors in case of private company A) 2. B) 15. C) 200. D) None of the above. Show Answer Correct Answer: B) 15. 5. A ..... has its objectives for the promotion of economic interest of its members in accordance with cooperative principles. A) Sole proprietorship. B) Joint hindu family business. C) Partnership. D) Cooperative society. Show Answer Correct Answer: D) Cooperative society. 6. Nike, Google and Apple are examples of ..... A) Public Limited Companies. B) Partnerships. C) Franchises. D) Sole Proprietorships. Show Answer Correct Answer: A) Public Limited Companies. 7. Limited companies pay which tax? A) Conglomerate tax. B) PAYE. C) Enterprise tax. D) Corporation tax. Show Answer Correct Answer: D) Corporation tax. 8. Which of the following statements is/are true?(i) An informal organisation exists within every formal organisation(ii) The objectives of the informal organisation are broadly the same as those of the formal organisation(iii) A strong, close-knit informal organisation is desirable within the formal organisation A) Statement (i) only. B) Statements (i) and (iii) only. C) Statements (ii) and (iii) only. D) Statement (iii) only. Show Answer Correct Answer: A) Statement (i) only. 9. Assertion (A):A partnership firm does not have separate legal entity.Reason(R):The partners of a firm have unlimited liability. 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: B) Both A and R are true but R is not the correct explanation of A. 10. What's the capital of Poland? A) Cracow. B) Warsaw. C) Wroclaw. D) None of the above. Show Answer Correct Answer: B) Warsaw. 11. What is the liability of a minor member in Joint Hindu Family Business? A) Unlimited. B) Limited. C) No liability. D) Partially limited. Show Answer Correct Answer: B) Limited. 12. What is the advantage to a business of selling a franchise license to franchisee? A) The business can expand more quickly. B) The franchisor owns all of the shops. C) The business buying the franchise is likely to be successful. D) 100% profit goes to the franchisor. Show Answer Correct Answer: A) The business can expand more quickly. 13. Name the type of partner who is not really a partner but is liable to third parties for the repayment of firm's debt. A) SLEEPING/DORMANT PARTNER. B) PARTNER BY HOLDING OUT. C) OUTSIDE PARTNER. D) PARTNER BY ESTOPPEL. Show Answer Correct Answer: D) PARTNER BY ESTOPPEL. 14. Name the cooperative society that provides loan to its members at easy terms and reasonable interest A) Credit Cooperative societies. B) Consumers Cooperative Societies. C) Marketing Cooperative societies. D) Credit Cooperative societies. Show Answer Correct Answer: A) Credit Cooperative societies. 15. What is the nature of liability of the coparceners in a joint hindu family business? A) Joint and limited. B) Limited to their share of co-parcenery property. C) Unlimited. D) Joint and unlimited. Show Answer Correct Answer: B) Limited to their share of co-parcenery property. 16. What is considered while selecting the place of business A) Region. B) Locality. C) Capital. D) Both region and locality. Show Answer Correct Answer: D) Both region and locality. 17. Which one has more financial risk? A) A partnership. B) A sole trader. C) All the above. D) None of the above. Show Answer Correct Answer: B) A sole trader. 18. What are members of a joint stock company known as? A) Investors. B) Partners. C) Stakeholders. D) Shareholders. Show Answer Correct Answer: D) Shareholders. 19. A unit of investment in a company. These make up the capital of the company. They can have a nominal or face value of $ 0.50, $ 1, $ 10 etc. A) Share. B) Dividend. C) Debenture. D) None of the above. Show Answer Correct Answer: A) Share. 20. Hema running a business in sole-proprietorship. Due to loss in business she decided to wind up her business. On the day of winding up the assets are worth Rs. 5 lakhs and liabilities (all creditors) are worth Rs. 10 lakhs. Hema has her personal property of Rs. 600000. How much do you think the creditors will get at the time of winding up of business? A) Rs. 5 lakhs. B) Rs. 7 lakhs. C) Rs. 10 lakhs. D) None of the above. Show Answer Correct Answer: C) Rs. 10 lakhs. 21. What is a major advantage of a business that is a partnership rather than a sole proprietorship? A) The responsibility of the business is shared equally. B) The partners are not responsible for business debts. C) The business is easy to set up. D) The business is easy to sell. Show Answer Correct Answer: A) The responsibility of the business is shared equally. 22. Law firms, medical practices, and auto body repair shops are examples of what type of ownership? A) Corporation. B) Franchise. C) Sole proprietorship. D) Partnership. Show Answer Correct Answer: D) Partnership. 23. In which of the following forms there exists unlimited liability? A) Partnership. B) Private Company. C) Cooperative Society. D) Government Company. Show Answer Correct Answer: A) Partnership. 24. WHICH OF THE FOLLOWING IS ONT THE FEATURE OF SOLE PROPRIETORSHIP? A) Easy formation. B) Limited liability. C) No separate entity. D) Lack of business continuity. Show Answer Correct Answer: B) Limited liability. 25. Can Partnership be carried on without having agreement in writing? A) Yes. B) NO. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 26. Which of the following is a correct definition of 'span of control'? A) The number of employees subordinate in the hierarchy to a given manager. B) The number of levels in the hierarchy 'below' a given manager's. C) The number of employees directly responsible to a manager. D) None of the above. Show Answer Correct Answer: C) The number of employees directly responsible to a manager. 27. When a company takes out a loan their owners are responsible for paying the loan. A) True. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 28. A ..... partner is an owner who has unlimited liability and is active in managing the firm A) (c) silent partner. B) (d) limited partner. C) Senior partner. D) (b) Active partner. Show Answer Correct Answer: D) (b) Active partner. 29. Marketing cooperative society is established to help small producers in selling their products. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 30. Which one is CORRECT inrespect of number of members in public company A) Minimum 7, Maximum no limit. B) Minimum 2, Maximum 200. C) Minimum 2, Maximum no limit. D) Minimum 7, Maximum 200. Show Answer Correct Answer: A) Minimum 7, Maximum no limit. 31. Provision of residential accommodation tot he members at reasonable rates is the objective of: A) Consumers cooperative society. B) Producers cooperative society. C) Credit cooperative society. D) Housing cooperative society. Show Answer Correct Answer: D) Housing cooperative society. 32. How many signatories are required for memorandum of association in case of public company? A) 3. B) 5. C) 7. D) 2. Show Answer Correct Answer: C) 7. 33. Business Model offer products and services directly to individual customers A) C2B. B) C2C. C) B2C. D) B2B. Show Answer Correct Answer: C) B2C. 34. The structure in which there is seperation of ownership and management is called A) Sole proprietorship. B) Partnership. C) Company. D) All business organisations. Show Answer Correct Answer: C) Company. 35. What is one of the primary objectives of business organization? A) Environmental conservation. B) Maximizing shareholder wealth. C) Promoting political agendas. D) Charitable donations. Show Answer Correct Answer: B) Maximizing shareholder wealth. 36. What is a municipal enterprise? A) A type of public limited company. B) A business owned by private individuals. C) A franchise operation. D) A business run by local government authorities. Show Answer Correct Answer: D) A business run by local government authorities. 37. Which of the following is a feature of a Joint Stock Company? A) Transferability of shares. B) Unlimited liability. C) No legal entity. D) Single ownership. Show Answer Correct Answer: A) Transferability of shares. 38. An incorporated business formally distributes profit to shareholders using: A) Shareholder transfer. B) Dividends. C) Bonuses. D) Payroll. Show Answer Correct Answer: B) Dividends. 39. In LLP What is the maximum no of partners? A) 100. B) 10. C) 50. D) Unlimited. Show Answer Correct Answer: D) Unlimited. 40. Which is TRUE about Partner by Estoppel A) The person gives an impression to others that he is a partnrer in a firm. B) Liable to the third parties and has unlimited liablity. C) Does not contribute capital. D) All of the above. Show Answer Correct Answer: D) All of the above. 41. Preference shares do not have the right of getting dividend. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 42. Identify the activity which does not support trade. A) Insurance. B) Warehousing. C) Mining. D) Banking. Show Answer Correct Answer: D) Banking. 43. Which statement is TRUE in respect of Partnership business A) Agreement between persons. B) Agree to share profits /losses. C) Carried on by all or any of them acting for all. D) All of the above. Show Answer Correct Answer: D) All of the above. 44. A ..... is one who allows the use of his/her name by a firm, but does not contribute to its capital. A) Active Partner. B) Nominal Partner. C) Secret Partner. D) Dormant Partner. Show Answer Correct Answer: B) Nominal Partner. 45. Business plays a significant role in economic development by generating employment opportunities. A) A. True. B) B. FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) A. True. 46. Who elects the board of directors of a company? A) Stakeholders. B) Suppliers. C) Shareholders. D) Managing director. Show Answer Correct Answer: C) Shareholders. 47. The HUF business is controlled and manged by ..... A) Kartha or Karanavar. B) Any member nominated by the family. C) Committee of members. D) All members together. Show Answer Correct Answer: A) Kartha or Karanavar. 48. The simplest form of business ownership is a: A) Proprietorship. B) Corporation. C) Partnership. D) Cooperative. Show Answer Correct Answer: A) Proprietorship. 49. What type of business organization is characterized by a single owner? A) Joint Stock Company. B) Cooperative Society. C) Partnership. D) Sole Proprietorship. Show Answer Correct Answer: D) Sole Proprietorship. 50. The ..... department deals with customer enquiries. A) Sales. B) Production. C) All the above. D) None of the above. Show Answer Correct Answer: A) Sales. 51. The maximum number of members in a Private Ltd company is A) 200. B) 50. C) No limit. D) 100. Show Answer Correct Answer: A) 200. 52. The aim of such societies is to protect the members from the exploitation of lenders who charge high rates of interest on loans. A) Consumer's cooperative societies. B) Farmers' cooperative societies. C) Producers' cooperative societies. D) Credit cooperative societies. Show Answer Correct Answer: D) Credit cooperative societies. 53. Loan Intended to cover the time lag between the sanctioning and disbursement of a term loan A) Equity Capital. B) Bridge Capital. C) Seed Capital. D) Venture Capital. Show Answer Correct Answer: B) Bridge Capital. 54. Which of the following is NOT a feature of Private Company A) Uses the word "Limited '' after its name. B) Restricts the maximum number of membership. C) Probition on raising capital from public. D) Restriction on transferability of shares. Show Answer Correct Answer: A) Uses the word "Limited '' after its name. 55. A share is a percentage of the company. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 56. The profit distributed among the shareholders is known as: A) Interest. B) Incentives. C) Bonus. D) Dividend. Show Answer Correct Answer: D) Dividend. 57. What is a sole trader? A) A business owned by two or more people. B) A cooperative business. C) A business owned and run by one person. D) A business that sells shares to the public. Show Answer Correct Answer: C) A business owned and run by one person. 58. Every partner is ..... A) Both principal and agent of the firm. B) Only principal of the firm. C) Only agent of the firm. D) None of the above. Show Answer Correct Answer: A) Both principal and agent of the firm. 59. It is not possible to maintain secrecy and confidentiality under sole proprietorship A) The statement is false. B) The statement is true. C) Depends on the size of business. D) Depends on the nature of the Business. Show Answer Correct Answer: A) The statement is false. 60. Cost per unit remains the same at all levels of activity. A) Fixed Cost. B) Variable Cost. C) Total Cost. D) Break Even Point. Show Answer Correct Answer: B) Variable Cost. ← 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 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