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 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 6 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Everyone knows that he/she is a partner in the business A) Active partner. B) Sleeping partner. C) Secret partner. D) None of the above. Show Answer Correct Answer: A) Active partner. 2. Which of the following statements best applies to a public limited company (plc)? A) It is owned by the government and is in the public sector. B) It is owned by shareholders who can sell their shares in the Stock Exchange. C) It is quick and easy to set up with few legal formalities. D) Its accounts can be kept private and it receives little coverage in the business press. Show Answer Correct Answer: B) It is owned by shareholders who can sell their shares in the Stock Exchange. 3. A company is a creation of law and exists independent of its members. A) Separate legal entity. B) Perpetual succession. C) Formation. D) Artificial person. Show Answer Correct Answer: A) Separate legal entity. 4. Number of partners in a partnership business are ..... A) 2 to infinite. B) 200 maximum. C) 2 to 20 partners. D) Unlimited. Show Answer Correct Answer: C) 2 to 20 partners. 5. Which act governs partnership firms in India? A) Indian Partnership Act, 1932. B) Companies Act, 2013. C) Sole Proprietorship Act, 1950. D) Cooperative Societies Act, 1965. Show Answer Correct Answer: A) Indian Partnership Act, 1932. 6. Abbreviation for Private Limited Companies is A) PVT. B) PLC. C) PVT LTD. D) PLC LTD. Show Answer Correct Answer: C) PVT LTD. 7. What is the main advantage of a sole proprietorship? A) No need to pay taxes. B) Limited liability for the owner. C) Full control over the business and receives all the profits. D) Shared control with other partners. Show Answer Correct Answer: C) Full control over the business and receives all the profits. 8. Profits do not have to be shared.This statement refers to ..... A) Partnership. B) Conpany. C) HUF. D) Sole proprietorship. Show Answer Correct Answer: D) Sole proprietorship. 9. A form of business organization that is authorized to act as a legal entity regardless of the number of owners. A) Partnership. B) Distributor. C) Sole proprietorship. D) Company. Show Answer Correct Answer: D) Company. 10. One of the limitations for an entrepreneur of setting up a new business as a franchise is: A) Some decisions will be taken by the franchisor not the franchisee. B) Consumers will be less likely to have heard of the franchisor than the entrepreneur. C) A share of the costs will have to be paid to the franchisor. D) The profits of the franchised business will be lower than if it was not a franchise. Show Answer Correct Answer: A) Some decisions will be taken by the franchisor not the franchisee. 11. What is the primary characteristic of the private sector? A) Operated by individuals. B) Operated by cooperatives. C) Operated by the government. D) Operated by non-profit organizations. Show Answer Correct Answer: A) Operated by individuals. 12. Odd one out:Active Partner, Shareholder, Nominal partner, Secret partner. A) Shareholder. B) Secret Partner. C) Nominal Partner. D) Active Partner. Show Answer Correct Answer: A) Shareholder. 13. Assertion (A):A company can enter into contracts and file suits against others.Reason(R):A company has perpetual succession. 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. 14. There are ..... basic forms of business organisations. A) 4. B) 8. C) 5. D) 3. Show Answer Correct Answer: C) 5. 15. Stages in the formation of a public company are in the following order:- A) Promotion, commencement. B) Incorporation, capital subscription, commencement of business, promotion. C) Promotion, incorporation, capital subscription, commencement of business. D) Capital subscription, promotion, incorporation, commencement of business. Show Answer Correct Answer: C) Promotion, incorporation, capital subscription, commencement of business. 16. Name the document that is called Charter of Company. A) Memorandum of Association. B) Consent of Proposed directors. C) Article of Association. D) Name approval Letter. Show Answer Correct Answer: A) Memorandum of Association. 17. This type of business is subject to many more laws and are more difficult to form. A) Proprietorship. B) Partnership. C) Joint Stock Company. D) None of the above. Show Answer Correct Answer: C) Joint Stock Company. 18. Which of the following statements are true? i. Total fixed costs do not vary with the changes in the volume of production up to a given range. ii. Fixed cost per unit do not vary with the changes in the volume of production A) I only. B) II only. C) Both are True. D) Both are false. Show Answer Correct Answer: A) I only. 19. Which is an example of credit co-operatives in Kerala A) Thriveni Super Markets. B) Hantex. C) Milma. D) Service Co-operative Banks. Show Answer Correct Answer: D) Service Co-operative Banks. 20. The Act which governs the formation of a partnership business is Indian Partnership Act. A) . 1956. B) . 1912. C) . 1932. D) . 1949. Show Answer Correct Answer: C) . 1932. 21. The power to take decisions lies in the hands of a ..... in a cooperative society. A) Steering committee. B) Managing committee. C) Election committee. D) Democratic committee. Show Answer Correct Answer: B) Managing committee. 22. Characteristics include owned by two or more people and may be general or limited A) Sole Propriotorship. B) Partnership. C) Corporation. D) None of the above. Show Answer Correct Answer: B) Partnership. 23. What is the most common form of business ownership? A) Sole Proprietorship. B) Cooperative society. C) Partnership. D) Company. Show Answer Correct Answer: A) Sole Proprietorship. 24. Which one of the following is a glaring example for the success of co-opertive societies A) AMUL. B) MALABAR CEMENT. C) Hindustan Uniliver Limited. D) NESTLE. Show Answer Correct Answer: A) AMUL. 25. Which document is also called as Charter of the company? A) MOA. B) Registration certificate. C) Prospectus. D) AOA. Show Answer Correct Answer: A) MOA. 26. The process of operating a business with the aim of making a profit A) Entrepreneurship. B) Owner. C) Business man. D) Entrepreneur. Show Answer Correct Answer: A) Entrepreneurship. 27. Joint and several liability A) Co-parceners in an HUF. B) Partners in a firm. C) Members of cooperative society. D) Shareholders of a company. Show Answer Correct Answer: B) Partners in a firm. 28. After the death of Karta, the joint hindu family business comes to an end A) Depends on the mutual decision of the members. B) The statement is true. C) The statement is false. D) Depends on the nature of the business. Show Answer Correct Answer: A) Depends on the mutual decision of the members. 29. The principle of 'one man one vote' governs the cooperative society. A) True. B) False. C) Can't say. D) Partially false. Show Answer Correct Answer: A) True. 30. What is the meaning of business organisation? A) A legal document for businesses. B) The structure within which business activities are carried out. C) A method of profit calculation. D) A type of business model. Show Answer Correct Answer: B) The structure within which business activities are carried out. 31. What kind of activities take place in a business? A) Buying. B) Selling. C) Both buying and selling. D) None of the above. Show Answer Correct Answer: C) Both buying and selling. 32. The major policy and financial decision makers of a plc are the: A) Shareholders. B) CEO/GM/President. C) Chairman of the Board. D) Board of Directors. Show Answer Correct Answer: D) Board of Directors. 33. A male child becomes a member of the HUF when A) When he finishes his education. B) When he turns 18. C) Immediately on birth provided he is part of the 3rd generation in the family. D) Immediately on birth no matter what. Show Answer Correct Answer: C) Immediately on birth provided he is part of the 3rd generation in the family. 34. In which type of cooperative society the main aim is obtaining good quality products at reasonable prices? A) Producer Cooperative Society. B) Customer Cooperative Society. C) Consumer Cooperative Society. D) Marketing Cooperative Society. Show Answer Correct Answer: C) Consumer Cooperative Society. 35. It can continue as long as the partners want and is terminated when any partner gives a notice of withdrawal from partnership to the firm. A) Limited Partnership. B) General Partnership. C) Particular partnership. D) Partnership at will. Show Answer Correct Answer: D) Partnership at will. 36. Qualification shares are subscribed by: A) Auditors of the company. B) Directors of the company. C) Bankers of the company. D) Employees of the company. Show Answer Correct Answer: B) Directors of the company. 37. Which of the following principles of classical management is challenged by matrix management? A) Structuring the organisation on functional lines. B) Structuring the organisation on geographical lines. C) Unity of command. D) Decentralisation of decision-making. Show Answer Correct Answer: C) Unity of command. 38. ..... is characteristic of cooperative society A) One person one vote. B) No profit has been shared. C) Control is in the hands of one person. D) None of the abovee. Show Answer Correct Answer: A) One person one vote. 39. The minimum number of members required to form a public company is A) 2. B) 5. C) 7. D) None of the above. Show Answer Correct Answer: C) 7. 40. Which one of the following use para language A) Workers. B) Students. C) Radio Jokey. D) Business Man. Show Answer Correct Answer: C) Radio Jokey. 41. Minimum number of members to create a private company is: A) 6. B) 3. C) 7. D) 2. Show Answer Correct Answer: C) 7. 42. Which of the following is NOT a type of Cooperative Society? A) Consumer cooperatives. B) Producer cooperatives. C) Sole proprietorships. D) Credit cooperatives. Show Answer Correct Answer: C) Sole proprietorships. 43. ..... acts as a signature of the company A) Artificial Signature. B) Common image. C) Common sign. D) Common seal. Show Answer Correct Answer: D) Common seal. 44. Limited Liability A) Sole Proprietorship. B) Cooperative Society. C) Limited Partnership. D) Joint Hindu Family Business. Show Answer Correct Answer: B) Cooperative Society. 45. A partner whose association with the firm is known to the general public A) Nominal partner. B) Sleeping partner. C) Active partner. D) Secret partner. Show Answer Correct Answer: D) Secret partner. 46. Providing seed capital for companies in transforming innovative business ideas A) Leasing. B) Venture Capital. C) Hire Purchase. D) None of these. Show Answer Correct Answer: B) Venture Capital. 47. A person is considered a partner ..... if, through his/her own initiative, conduct or behaviour, he/she gives an impression to others that he/she is a partner of the firm. A) Sleeping or dormant partner. B) Secret partner. C) Partner by estoppel. D) Partner by holding out. Show Answer Correct Answer: C) Partner by estoppel. 48. One of the characteristics of a business organization is limited liability for its owners. A) A. True. B) B. False. C) All the above. D) None of the above. Show Answer Correct Answer: A) A. True. 49. Business owned by shareholders is A) Corporation. B) Sole proprietorship. C) Partnership. D) Franchise. Show Answer Correct Answer: A) Corporation. 50. Abhishek and Nidhi want to start a shop to sell Rajasthani sweets. They did not know how to develop the agreement for this purpose. So, they approached a chartered accountant who advised them to prepare a document which may stipulate the terms and conditions of the agreement. On the basis of given information, name the document about which the chartered accountant advised Abhishek and Nidhi. A) Prospectus. B) MoA. C) AoA. D) Partnership deed. Show Answer Correct Answer: D) Partnership deed. 51. The liability of a partner by estoppel is limited A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 52. Profits donot have to be shared. This statement refers to A) Partnership business. B) Organisations. C) Sole Proprietorship business. D) All of the above. Show Answer Correct Answer: C) Sole Proprietorship business. 53. Name the cooperative society formed by the producers of Nand Nagri in order to solve their problem. A) Producers' Cooperative Society. B) Marketing Cooperative Society. C) Cooperative Credit Society. D) Consumers' Cooperative Society. Show Answer Correct Answer: B) Marketing Cooperative Society. 54. "Liability of members in company forms of organisation is ..... ". A) Unlimited liability. B) Limited liability. C) All the above. D) None of the above. Show Answer Correct Answer: B) Limited liability. 55. A disruptive innovation is a potent combination of: A) High technology and Low cost. B) Creative business model and High technology. C) Creative business model and low cost. D) High technology, Low cost and Creative business model. Show Answer Correct Answer: D) High technology, Low cost and Creative business model. 56. Sara's Hair Palace is a small, locally owned beauty salon in Sterling. This represents what type of business? A) Corporation. B) Partnership. C) Sole proprietorship. D) None of the above. Show Answer Correct Answer: C) Sole proprietorship. 57. The main reason why an entrepreneur will convert an LTD into a PLC is A) They don't want to remain in the private sector. B) They want to gain the benefits of limited liability. C) They want to keep the annual accounts secret. D) They want to raise additional capital to expand the business. Show Answer Correct Answer: D) They want to raise additional capital to expand the business. 58. Disadvantages of this business type include:needs a partnership agreement, partners might not get along, owners share profits, unlimited liability. A) Sole Proprietorship. B) Franchise. C) Partnership. D) Corporation. Show Answer Correct Answer: C) Partnership. 59. Partnership requires at least three people A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 60. ..... is responsible for organizing conferences and trade events. A) Finance. B) Marketing. C) All the above. D) None of the above. Show Answer Correct Answer: B) Marketing. ← 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 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