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 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 5 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In India, Co-operative Societies Act was enacted in the year ..... A) 1912. B) 1950. C) 1921. D) 1947. Show Answer Correct Answer: A) 1912. 2. "One person company can be formed by one person and that one person must be natural person" . state A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 3. Company's management is overseen by A) Shareholders. B) Partners. C) Board of directors. D) None of the above. Show Answer Correct Answer: C) Board of directors. 4. Which of the following is an advantage of a partnership? A) Which of the following is an advantage of a partnership?. B) Partnerships can usually attract financial capital more easily than proprietorships. C) Management is hard between two or more people. D) They are inefficient. Show Answer Correct Answer: B) Partnerships can usually attract financial capital more easily than proprietorships. 5. Sole trader businesses are owned and managed by ..... A) 2-20 people. B) 1 person. C) Multiple owners. D) Partners. Show Answer Correct Answer: B) 1 person. 6. Which is the least regulated business form of business? A) Sole Proprietorship. B) Cooperative Society. C) Partnership. D) Joint Hindu Family Business. Show Answer Correct Answer: A) Sole Proprietorship. 7. These business owners may have trouble raising capital. A) Franchise. B) Partnership. C) Sole proprietorship. D) Corporation. Show Answer Correct Answer: C) Sole proprietorship. 8. The structure in which there is separation of ownership and management as per law is called A) Company. B) All business organisations. C) Partnership. D) Sole proprietorship. Show Answer Correct Answer: A) Company. 9. What is the main goal of commercial organisation? A) Social Welfare. B) Providing Services. C) Profit Maximisation. D) Fulfilling Shareholders Needs. Show Answer Correct Answer: C) Profit Maximisation. 10. Which of the following is not a feature of business? A) Profit motive. B) Government ownership. C) Risk and Uncertainty. D) Economic activity. Show Answer Correct Answer: B) Government ownership. 11. Merit of Sole Proprietorship is A) Ease in formation and closure. B) Unlimited liability. C) No separate legal entity. D) No perpetual succession. Show Answer Correct Answer: A) Ease in formation and closure. 12. Maximum number of members in a private limited company is ..... A) 50. B) 200. C) 7. D) 100. Show Answer Correct Answer: B) 200. 13. How is a corporation different from a sole proprietorship or partnership? A) A corporation has only one or two owners. B) A corporation is usually owned by one person. C) A corporation requires a legal charter with the state. D) The owners (stockholders) have limited liability. Show Answer Correct Answer: D) The owners (stockholders) have limited liability. 14. A minor can be admitted to the benefits of an already existing partnership firm- A) With the consent of Managing Partner. B) With the consent of all existing Partners. C) With the consent of the court. D) None of the above. Show Answer Correct Answer: B) With the consent of all existing Partners. 15. Which type of company can easily transfer shares? A) Private company. B) Sole Proprietorship. C) One Person Company. D) Public company. Show Answer Correct Answer: D) Public company. 16. Who becomes 'Karta' in Joint Hindu Family Business? A) Senior most member. B) Any member can become. C) Most Educated member of family. D) By voting of members. Show Answer Correct Answer: A) Senior most member. 17. There is no restriction on transfer of shares in case of private company A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 18. In a Joint Hindu Family Business, what happens if the Karta dies? A) The business is dissolved. B) The business is sold. C) The next senior male member becomes Karta. D) The business continues without a Karta. Show Answer Correct Answer: C) The next senior male member becomes Karta. 19. The people who make the major policy and financial decisions in a corporation are the A) Owners. B) Investors. C) Board of directors. D) Managers. Show Answer Correct Answer: C) Board of directors. 20. Who can be the sole member of a One Person Company (OPC)? A) Any individual. B) Any non-resident. C) Only a foreign citizen. D) Only an Indian citizen and resident. Show Answer Correct Answer: D) Only an Indian citizen and resident. 21. Chief of Hindu family is called Karta. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 22. One of the 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 complete control over decision making. Show Answer Correct Answer: D) The owner has complete control over decision making. 23. Maximum number of partners allowed in banking sector are ..... A) 5. B) 20. C) 10. D) 30. Show Answer Correct Answer: C) 10. 24. A ..... is where two or more businesses starta new project together, sharing capital, risks and profits. A) Sole Trade. B) Public Limited Company. C) Joint Venture. D) Parthenship. Show Answer Correct Answer: C) Joint Venture. 25. What does LLP stand for? A) Losing Limited Pace. B) Limited Liability Property. C) Lying Losers Pos. D) Limited Liability Partnership. Show Answer Correct Answer: D) Limited Liability Partnership. 26. The most suitable form of organization for risky business is ..... A) Partnership firm. B) Sole proprietorship. C) Joint Stock Company. D) Joint Hindu Family business. Show Answer Correct Answer: C) Joint Stock Company. 27. What is a sole proprietorship? A) A business owned by multiple individuals. B) A cooperative society. C) A business owned by a single individual. D) A joint stock company. Show Answer Correct Answer: C) A business owned by a single individual. 28. There is no limit on maximum member in a public company A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 29. Shortest lifespan A) Sole Proprietorship. B) Partnership. C) Corporation. D) None of the above. Show Answer Correct Answer: A) Sole Proprietorship. 30. Meg and Ria run a boutique in a partnership, sharing profits and losses equally. The assets of the firm are worth ₹ 50, 000, but the firm's debts amount to ₹ 80, 000. Who will be responsible to pay the debt of ₹ 30, 000 over and above the assets? A) Debt will be paid wholly by Meg. B) Debt will be paid wholly by Ria. C) Debt will be paid equally by Meg and Ria. D) Debt will be not be paid by Meg or Ria. Show Answer Correct Answer: C) Debt will be paid equally by Meg and Ria. 31. When two companies work together to create or run a new company. A) A joint venture. B) A franchise. C) A partnership. D) None of the above. Show Answer Correct Answer: A) A joint venture. 32. Registration of LLP will be done by ..... A) Registrar of Co-operative Societies. B) Registrar of Firm. C) Registrar og Industries. D) Registrar of Companies. Show Answer Correct Answer: D) Registrar of Companies. 33. The life of sole proprietorship business is ..... A) Unstable. B) Long life. C) Very short life. D) Stable. Show Answer Correct Answer: A) Unstable. 34. The persons who have an equal ownership right over the property of the ancestors are known as A) Karta. B) Members. C) Shareholders. D) Coparceners. Show Answer Correct Answer: D) Coparceners. 35. What is a key limitation of a sole proprietorship? A) Limited capital. B) Easy to start. C) Unlimited liability. D) Full control. Show Answer Correct Answer: C) Unlimited liability. 36. The Head of the joint Hindu family business is called A) Karta. B) Manager. C) Proprietor. D) Director. Show Answer Correct Answer: A) Karta. 37. Name the types of company which require to maintain the index of its members. A) Private Company. B) Public Company. C) Joint stock company. D) One person company. Show Answer Correct Answer: B) Public Company. 38. SIDBI stands for A) Small Investment Development Bank of India. B) Small Industries Development Bureau of India. C) State Industries Development Bank of India. D) Small Industries Development Bank of India. Show Answer Correct Answer: D) Small Industries Development Bank of India. 39. Unincorporated business means A) Dose not have a separate legal identity from the owner. B) Not allowed to share profits. C) Having Limited Liability. D) None of the above. Show Answer Correct Answer: A) Dose not have a separate legal identity from the owner. 40. What are the disadvantages of a partnership? A) Unlimited liability, lack of control, difficulty in decision-making. B) Shared liability, potential conflicts, limited growth potential. C) All the above. D) None of the above. Show Answer Correct Answer: B) Shared liability, potential conflicts, limited growth potential. 41. The capital of a company is divided into numbers of parts.Each part is called A) Interest. B) Share. C) Profit. D) None of the above. Show Answer Correct Answer: B) Share. 42. Which of the following is a feature of Sole Proprietorship? A) Limited capital. B) Unlimited liability. C) Partnership agreement. D) Separate legal entity. Show Answer Correct Answer: B) Unlimited liability. 43. Name the type of company that allow its members to transfer its shares A) One person company. B) Private Company. C) Public Company. D) None of the above. Show Answer Correct Answer: C) Public Company. 44. What is the minimum number of members required for a joint hindu family business? A) Five. B) Three. C) Two. D) One. Show Answer Correct Answer: C) Two. 45. A prospectus is issued by: A) A private company. B) A public company seeking investments by friends or family. C) A public company seekling investments by public. D) A public enterprise. Show Answer Correct Answer: C) A public company seekling investments by public. 46. Which option is not a business activity? A) Exchange of goods. B) Transportation. C) Work in a factor for wages. D) Production of goods. Show Answer Correct Answer: D) Production of goods. 47. What is a limitation of a Cooperative Society? A) Democratic control. B) Voluntary membership. C) Limited capital. D) Service motive. Show Answer Correct Answer: C) Limited capital. 48. Which one is CORRECT in repect of consequence of Non Registration of Firms A) Unregistered firm cannot file a suit against third parties. B) Unregistered firm cannot file a suit against the partners. C) Partners in an unregistered firm cannot file a suit against the firm. D) All of them are correct. Show Answer Correct Answer: D) All of them are correct. 49. Who among the following can only be beneficiary of business and does not has unlimited liability? A) Active Partner. B) Secret Partner. C) Sleeping Partner. D) Minor Partner. Show Answer Correct Answer: D) Minor Partner. 50. Which of the following is a factor influencing the choice of business organisation? A) Type of customers. B) Cost and ease of formation. C) Location of business. D) Personal preferences. Show Answer Correct Answer: B) Cost and ease of formation. 51. The collective forum of all shareholders are called ..... A) Board of Directors. B) General Body. C) Association. D) None of the above. Show Answer Correct Answer: B) General Body. 52. In a cooperative society the principle followed is ..... A) One share one vote. B) No vote. C) Multiple votes. D) One man one vote. Show Answer Correct Answer: D) One man one vote. 53. Which of the following businesses is likely to have the most amount of capital A) Partnership. B) Public limited Company. C) Sole trader. D) None of the above. Show Answer Correct Answer: B) Public limited Company. 54. Why do you need a business plan? A) To explain your idea. B) The ability to get financing. C) It's a road map that sets objectives and goals for the business. D) To help reduce the risk of business failure. E) All of the above. Show Answer Correct Answer: E) All of the above. 55. Name the form of business organisation which gets support from the Government. A) Joint Stock Company. B) Cooperative Society. C) Public Company. D) Public Private Partnership. Show Answer Correct Answer: B) Cooperative Society. 56. Find out the liability of Anita in a company, who is a shareholder, holding 3, 000 shares of 10 each. She has already paid 6 per share. A) 10, 000. B) 1, 20, 000. C) 18, 000. D) 12, 000. Show Answer Correct Answer: D) 12, 000. 57. Anyone can buy shares of a private limited company. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 58. Which company is NOT a public company among the following? A) Hindustan Unilever Ltd. B) Reliance Industries Limited. C) Bajaj Holdings. D) Infosys Technologies. Show Answer Correct Answer: D) Infosys Technologies. 59. These are run by individuals. A) Public sector companies. B) Private sector companies. C) All the above. D) None of the above. Show Answer Correct Answer: B) Private sector companies. 60. Transfer of ownership is easy in the case of ..... whereas it is difficult in the case of: A) Joint-stock company, partnership. B) Partnership, joint stock company. C) Sole proprietorship, joint stock company. D) Sole proprietorship, partnership. Show Answer Correct Answer: A) Joint-stock company, partnership. ← 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 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