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 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 7 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The most important document used in partnership business is ..... A) PARTNERSHIP DEED. B) NONE OF THE ABOVE. C) MEMORANDUM OF ASSOCIATION. D) None of the above. Show Answer Correct Answer: A) PARTNERSHIP DEED. 2. What is a merit of a Joint Stock Company? A) Single ownership. B) Limited liability. C) No legal entity. D) Unlimited liability. Show Answer Correct Answer: B) Limited liability. 3. Private Limited Companies are owned by A) Sole Traders. B) Partners. C) The Government. D) Shareholders. Show Answer Correct Answer: D) Shareholders. 4. The reward for the efforts of a sole trader is called wage. A) A) True. B) B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) B) False. 5. Example for tertiary sector is A) Fishing. B) IT. C) Tourism. D) Education. Show Answer Correct Answer: C) Tourism. 6. In the event of death of the existing Karta in HUF the next karta is A) Elder male member. B) Eldest coparcener next to existing Karta. C) Female member. D) None of the above. Show Answer Correct Answer: B) Eldest coparcener next to existing Karta. 7. A private company can start its operation after completing A) Promotion Stage. B) Registration Stage. C) Capital Subscription Stage. D) Any time on the will of company. Show Answer Correct Answer: B) Registration Stage. 8. The public sector is owned and controlled by the Government? A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 9. Tell the name of the cooperative society established by the producers of the industrial area located in the proximity of Dwarkapuri. A) Consumers' Cooperative Society. B) Producers' Cooperative Society. C) Marketing Cooperative Society. D) Cooperative Credit Society. Show Answer Correct Answer: B) Producers' Cooperative Society. 10. Which of the following is a drawback of sole trader businesses in terms of growth potential? A) Full control over business operations and decision-making. B) Ability to easily adapt to market changes and customer preferences. C) Limited access to external financing and investment opportunities. D) Flexibility in managing work-life balance and personal commitments. Show Answer Correct Answer: C) Limited access to external financing and investment opportunities. 11. Name the document which is not required by public company, if they are following Table F of Company Act A) Article of Association. B) Memorandum of Association. C) Name approval Letter. D) Consent of Proposed directors. Show Answer Correct Answer: A) Article of Association. 12. A ..... is a business based upon the use of the brand names, promotional logos and trading methods of an existing successful business. A) Sole Trade. B) Joint venture. C) Partnership. D) Franchise. Show Answer Correct Answer: D) Franchise. 13. Which of the following is a merit of a Partnership? A) Unlimited liability. B) More capital. C) Complex formation. D) Limited capital. Show Answer Correct Answer: B) More capital. 14. Which of the following statements are true?(i) With a shared service centre services are likely to be less tailored(ii) The IT function is commonly provided using shared service approach(iii) A shared service centre is not part of the organisation A) Statement (i) and (iii) only. B) Statements (i) and (ii) only. C) Statements (ii) and (iii) only. D) None of the above. Show Answer Correct Answer: B) Statements (i) and (ii) only. 15. Forms of business organisations A) Hindu undivided family. B) Partnership firm. C) Sole proprietor. D) None of the above. E) A, B, C. Show Answer Correct Answer: E) A, B, C. 16. Nike, IBM, and Google are examples of what type of business? A) Partnership. B) Corporation. C) Sole Proprietorship. D) None of the Choices. Show Answer Correct Answer: B) Corporation. 17. In a Sole Proprietorship, who has the control? A) The owner. B) The employees. C) The government. D) The customers. Show Answer Correct Answer: A) The owner. 18. Which is NOT a Merit of Partnership A) Possibility of conflicts between partners. B) Ease of formation anf closure. C) Sharing of risks. D) Decision making through mutual consent anf joint effort. Show Answer Correct Answer: A) Possibility of conflicts between partners. 19. Which one can attract investment from "sleeping partners" ? A) Sole trader. B) Partnership. C) All the above. D) None of the above. Show Answer Correct Answer: B) Partnership. 20. Which is TRUE in respect of number of members in partnership A) Minimum 7, Maximum 50. B) Minimum 2, Maximum 200. C) Minimum 7, Maximum 200. D) Minimum 2, Maximum 50. Show Answer Correct Answer: D) Minimum 2, Maximum 50. 21. A partnership in which all partners assume full personal liability for debts of the firm A) Limited partnership. B) Non-trading partnership. C) General partnership. D) Trading partnership. Show Answer Correct Answer: C) General partnership. 22. Which of the following is a key component of the marketing and sales strategy? A) Pricing strategy. B) Income statements. C) Product life cycle. D) Break even analysis. Show Answer Correct Answer: A) Pricing strategy. 23. A ..... provides for the greatest degree of continuity: A) Sole proprietorship. B) Joint venture. C) Corporation. D) General partnership. Show Answer Correct Answer: C) Corporation. 24. What is the primary purpose of a partnership deed? A) To outline the roles of partners. B) To register the firm. C) To increase capital. D) To limit liability. Show Answer Correct Answer: A) To outline the roles of partners. 25. In case of ..... Registration is compulsory A) None of these. B) Sole Proprietorship. C) Partnership. D) Company. Show Answer Correct Answer: D) Company. 26. Whichofthefollowingisanadvantageof operatingalargeestablishedbusinessasacorporation? A) Owners have unlimited liability. B) Sharescan only be sold to invitedinvestorstoraise finance. C) Sharescan be sold to the public to raise additionalfinance. D) Financialaccountsare published. Show Answer Correct Answer: C) Sharescan be sold to the public to raise additionalfinance. 27. In which form of business organisation, the focus is on elimination of middlemen, this helps in reducing costs. A) Sole Proprietorship. B) Joint Hindu Family Business. C) Partnership. D) Cooperative Society. Show Answer Correct Answer: D) Cooperative Society. 28. The owners of a corporation are called A) Partners. B) Shareholders. C) Founders. D) Directors. Show Answer Correct Answer: B) Shareholders. 29. ..... are voluntary business organisations that are owned, controlled and operated by their members. A) Partnerships. B) Cooperatives. C) Franchises. D) None of the above. Show Answer Correct Answer: B) Cooperatives. 30. Identify the type of cooperative society which seek financial help to its members. A) Financial Cooperative Society. B) Bankers Cooperative Society. C) Credit Cooperative Society. D) Financing Cooperative Society. Show Answer Correct Answer: C) Credit Cooperative Society. 31. ..... society's aim is to gain the benefits of large scale farming and increase the productivity. A) Marketing cooperative. B) Consumer's cooperative. C) Producer's cooperative. D) Farmer's cooperative. Show Answer Correct Answer: D) Farmer's cooperative. 32. Which of the following statements are true? I. A Patent is an illegal right.II. A patent holder can take legal action if anyone violates the patent. A) I is true; II is false. B) Both I and II are true. C) Neither I nor II is true. D) II is true; I is false. Show Answer Correct Answer: D) II is true; I is false. 33. The form of business operated by two (2) or more persons A) Partnership. B) Private limited company. C) Public limited company. D) Sole trader. Show Answer Correct Answer: A) Partnership. 34. What kind of business is BEST described by these statements?I am the only owner of my business. I take all the risks of doing business. I keep all the profits. A) Corporation. B) Partnership. C) Cooperative. D) Sole proprietorship. Show Answer Correct Answer: D) Sole proprietorship. 35. What is a joint venture and when is it commonly used? A) A joint venture is a type of limited company like public and private limited. B) A joint venture is a partnership between two sole traders. C) A joint venture is a type of business with the only aim to make profits. D) A joint venture is commonly used when two or more companies want to collaborate on a specific project or enter a new market together. Show Answer Correct Answer: D) A joint venture is commonly used when two or more companies want to collaborate on a specific project or enter a new market together. 36. Public company do not issued prospectus. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 37. Maximum number of members in private company are: A) 50. B) 200. C) 20. D) 100. Show Answer Correct Answer: B) 200. 38. What is a primary advantage of a joint stock company? A) Unlimited liability. B) Single ownership. C) No legal formalities. D) Limited liability. Show Answer Correct Answer: D) Limited liability. 39. Tina owns a profitable small business of a restaurant and earns good revenues. One of her friends suggested her to expand the business, but as the sole owner of business, Tina was hesitant as she did not want to invest her complete savings. The limitation of sole proprietorship type of business highlighted here is ..... A) Unlimited liability. B) Limited managerial ability. C) Limited funds. D) Dilution of control. Show Answer Correct Answer: C) Limited funds. 40. Centralized control in MNCs implies control exercise by? A) Parliament. B) Subsidiaries. C) Branches. D) Headquarters. Show Answer Correct Answer: D) Headquarters. 41. In which business, the support service activities are categorized? A) Commercial Industries. B) Territory Industries. C) Primary Industries. D) Secondary Industries. Show Answer Correct Answer: A) Commercial Industries. 42. What are the disadvantages of a limited liability company (LLC)? A) Limited life, self-employment taxes, and potential for disputes among members. B) Unlimited liability, high formation costs, and limited access to capital. C) All the above. D) None of the above. Show Answer Correct Answer: A) Limited life, self-employment taxes, and potential for disputes among members. 43. A partner whose association with the firm is unknown to the general public is called A) Nominal partner. B) Secret partner. C) Active partner. D) Sleeping partner. Show Answer Correct Answer: B) Secret partner. 44. The liability of coparceners in a HUF business is ..... A) Limited to their share of coprcenery property. B) Unlimited liability. C) Limited to the capital contributed. D) None of the above. Show Answer Correct Answer: A) Limited to their share of coprcenery property. 45. Which is TRUE about Partner by Holding out A) Allows to be represented himself as partner 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. 46. Which statement is FALSE in respect of HUF business A) Minor Cannot be a member. B) HUF business will have continuity. C) If Karta dies, the next elder member will assue the role of Karta. D) Minor can become a member in HUF. Show Answer Correct Answer: A) Minor Cannot be a member. 47. What is the minimum limit of members in case of a Private Company? A) 2. B) 7. C) 50. D) 10. Show Answer Correct Answer: A) 2. 48. A business owner who prefers to maintain complete control of all business activities might consider structuring the venture as a(n) A) Corporation. B) General partnership. C) Franchise. D) Sole proprietorship. Show Answer Correct Answer: D) Sole proprietorship. 49. In what type of business organization is each owner personally liable for all business debts, even if the debts were created by other owners? A) Partnership. B) S corporation. C) Corporation. D) Proprietorship. Show Answer Correct Answer: A) Partnership. 50. A person who is not a partner of the firm and does not contribute to capital, but behaves or expresses himself as a partner of the Business is called A) Active partner. B) Sleeping partner. C) Partner by ESTOPPEL. D) Partner by holding out. Show Answer Correct Answer: C) Partner by ESTOPPEL. 51. Members in HUF business are called A) Karta. B) Male members. C) Female members. D) Coparceners. Show Answer Correct Answer: D) Coparceners. 52. Which one is NOT a type of Partner in Partnership firms A) Nominal Partner. B) Sleeping Partner. C) Social Partner. D) Active Partner. Show Answer Correct Answer: C) Social Partner. 53. Which document is subsidiary of the MOA A) Consent of directors. B) Prospectus. C) Articles of association. D) Table A. Show Answer Correct Answer: B) Prospectus. 54. The 'separate legal entity' feature of a co-operative society states that A) It assigns unlimited liability to its member. B) It is not affected by the entry or exit of its members. C) It is controlled by the founder members of the society. D) None of the above. Show Answer Correct Answer: B) It is not affected by the entry or exit of its members. 55. Sole Proprietors have ..... liability A) Limited. B) Unlimited. C) Joint and Limited. D) Joint and Unlimited. Show Answer Correct Answer: B) Unlimited. 56. When a partnership is formed for the accomplishment of a particular project or an activity to be carried on for a specified time period, then it is known as ..... A) Limited Partnership. B) General Partnership. C) Particular Partnership. D) Partnership at will. Show Answer Correct Answer: C) Particular Partnership. 57. A document that partners can refer to when a conflict happens in a partnership. A) The deed of partnership. B) Articles of Association. C) The constitution. D) Memorandum of Association. Show Answer Correct Answer: A) The deed of partnership. 58. The liability of Karta or Karanavar in a HUF business is ..... A) Limited to their share of coprcenery property. B) Unlimited liability. C) Limited to the capital contributed. D) None of the above. Show Answer Correct Answer: B) Unlimited liability. 59. What are the key features of a franchise agreement? A) Weather conditions, local language spoken, public transportation options. B) Color of the franchise logo, office location, employee dress code. C) Rights and obligations of both parties, fees, renewal/termination terms. D) Number of employees, company mission statement, CEO's favorite food. Show Answer Correct Answer: C) Rights and obligations of both parties, fees, renewal/termination terms. 60. The board of directors of a company is elected by A) Shareholders. B) Government. C) General public. D) Owners. Show Answer Correct Answer: A) Shareholders. ← 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 6Class 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