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 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 8 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An advantage of setting up as an incorporated business rather than an unincorporated business is that the business: A) Will have unlimited liability. B) Will be able to obtain bank finance. C) Remains in existence after a change in ownership. D) Will be better at making decisions. Show Answer Correct Answer: C) Remains in existence after a change in ownership. 2. Limitation of Sole Proprietorship business is A) Confidentiality of information. B) Quick decision making. C) Direct incentive. D) Limited managerial ability. Show Answer Correct Answer: D) Limited managerial ability. 3. One of the reasons an entrepreneur might buy a franchise is A) The risk of failure is lower. B) There is complete control over important decisions. C) It is cheaper than setting up a new business venture. D) Can use own creativity in the new business. Show Answer Correct Answer: A) The risk of failure is lower. 4. The form of business organisation which is specifically found in India is: A) Joint Hindu Family business. B) Sole proprietorship. C) NGO. D) Cooperative society. Show Answer Correct Answer: A) Joint Hindu Family business. 5. At least 10 adults, no maximum limit in case of ..... A) Cooperative Society. B) Joint Hindu Family. C) Company. D) Partnership. Show Answer Correct Answer: A) Cooperative Society. 6. In a general partnership liability of partners is ..... A) UNLIMITED. B) LIMITED. C) All the above. D) None of the above. Show Answer Correct Answer: A) UNLIMITED. 7. The structure in which there is separation ownership and management A) Sole proprietorship. B) Partnership. C) Company. D) All business organisation. Show Answer Correct Answer: C) Company. 8. Which one is NOT applicable to Co-operative Societies A) Self help through mutual help. B) Profit Motive. C) Service motive. D) Working together. Show Answer Correct Answer: B) Profit Motive. 9. There is no separate law that governs this form of business A) Sole Proprietorship. B) Joint Hindu Family. C) Partnership. D) None of the above. Show Answer Correct Answer: A) Sole Proprietorship. 10. Every company must file AOA. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 11. Which type of business allows the owner to keep all of the profit for him/herself? A) Franchise. B) Sole Proprietorship. C) Corporation. D) Partnership. Show Answer Correct Answer: B) Sole Proprietorship. 12. What happens to the profits in a Sole Proprietorship? A) Paid as taxes. B) Reinvested in the business. C) Shared with partners. D) Go to the owner. Show Answer Correct Answer: D) Go to the owner. 13. A partner who is not actually involved in the partnership but lends his name for public relations purposes is A) Silent partner. B) Dominant partner. C) General partner. D) Nominal partner. Show Answer Correct Answer: D) Nominal partner. 14. How many partners can be in a Partnership? A) 1 to 50 partners. B) 1 to 5 partners. C) 1 to 20 partners. D) 1 to 10 partners. Show Answer Correct Answer: C) 1 to 20 partners. 15. Aprivate limited companymaychangeintoapubliclimited company becauseitwants: A) Limitedliability. B) Toraiseadditionalfinance. C) Toavoidtakeover. D) Unlimitedliability. Show Answer Correct Answer: B) Toraiseadditionalfinance. 16. Which of the following company can issue shares in the stock market to be subscribed by the general public? A) Private Limited Company. B) Public Limited Company. C) Partnership. D) One Person Company. Show Answer Correct Answer: B) Public Limited Company. 17. A person who allowes the use of his name by the firm but not contributes capital is called ..... A) Nominal Partner. B) Social Partner. C) Sleeping Partner. D) Active Partner. Show Answer Correct Answer: A) Nominal Partner. 18. An entrepreneur is who A) Manages financial investments. B) Sets the interest rates at banks. C) Takes the risk to earn profit. D) Enforces government regulations. Show Answer Correct Answer: C) Takes the risk to earn profit. 19. Membership in an HUF business is obtained by ..... A) Entering into an agreement. B) By birth in a Hindu Undivided Family. C) Purchasing shares. D) Contributing capital. Show Answer Correct Answer: B) By birth in a Hindu Undivided Family. 20. Which of the following statements about PLCs is most true A) The firm is owned and controlled by the workers. B) The firm is owned by the directors but run by shareholders. C) The firm is owned by shareholders and run by directors. D) The firm is owned and controlled by the government. Show Answer Correct Answer: C) The firm is owned by shareholders and run by directors. 21. What is a commonly claimed advantage of a sole trader business? 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. 22. Registration of partnership deed is mandatory A) A.Yes. B) B.No. C) All the above. D) None of the above. Show Answer Correct Answer: B) B.No. 23. The HUF business come to an end after the death of the Karta. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 24. Satish lost his job during the Covid-19 pandemic now he wants to start a business of his own in his hometown, Satish had limited finance available with him and he does not want many legal formalities to start a business, suggest Satish which forms of business organisation he should go for: A) Cooperative society. B) Partnership. C) Sole proprietorship. D) Joint hindu family business. Show Answer Correct Answer: C) Sole proprietorship. 25. Advantages of this business include:easier to get money from the bank to start, share skills and share risks. A) Franchise. B) Corporation. C) Sole Proprietorship. D) Partnership. Show Answer Correct Answer: D) Partnership. 26. Which of the following is a characteristic of a public company? A) Invites public to subscribe to shares. B) Shares cannot be transferred. C) No minimum capital requirement. D) Limited number of members. Show Answer Correct Answer: A) Invites public to subscribe to shares. 27. Co-operatives play an important role in: A) Aerospace. B) Agriculture. C) Manufacturing. D) All of the abov. Show Answer Correct Answer: B) Agriculture. 28. Franchises have a high possibility to have success. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 29. Which type of cooperative society performs various functions related to transportation, warehousing, gardening etc. A) Credit cooperative housing society. B) Marketing cooperative society. C) Farmers cooperative society. D) Consumer cooperative society. Show Answer Correct Answer: B) Marketing cooperative society. 30. This type of business is owned by many people called stockholders. A) Partnership. B) Franchise. C) Sole Proprietorship. D) Corporation. Show Answer Correct Answer: D) Corporation. 31. What is repatriation of profits A) The transfer of corporate money from a foreign country. B) A fancy way of saying debt. C) Management of large amounts of money from an outside country. D) None of the above. Show Answer Correct Answer: A) The transfer of corporate money from a foreign country. 32. Is it compulsory for a partnership firm to get registered? A) Depends on the size of the business. B) Yes. C) No. D) Depends on the nature of the business. Show Answer Correct Answer: C) No. 33. What is the main disadvantage of a sole proprietorship? A) Tax advantages. B) Limited liability. C) Ease of formation. D) Unlimited liability. Show Answer Correct Answer: D) Unlimited liability. 34. It is compulsory to get a company registered. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 35. Indian Co-operative Society's Act was passed in ..... A) 1912. B) 1913. C) 1911. D) 1915. Show Answer Correct Answer: A) 1912. 36. What factors lead to determination of size of a business organization? A) Nature of Activities of Business. B) Type of Business Organization. C) Availability of Finance. D) All of the above. Show Answer Correct Answer: D) All of the above. 37. An entrepreneur who enters the market with a product or service which is based on a similar or improved product that is already existing is called: A) Innovative entrepreneur. B) Opportunity entrepreneur. C) Necessity entrepreneur. D) Replicative entrepreneur. Show Answer Correct Answer: D) Replicative entrepreneur. 38. Members in a HUF business is called as ..... A) Shareholders. B) Coparceners. C) Co-partners. D) Co-operators. Show Answer Correct Answer: B) Coparceners. 39. A huge, international business is most likely to have which type of ownership? A) Franchise. B) Private Limited Company. C) Mutual organisation. D) Public Limited Company. Show Answer Correct Answer: D) Public Limited Company. 40. Which one is a co-operative values A) Self help and self responsibility. B) Equality and equity. C) Solidarity. D) All of the above. Show Answer Correct Answer: D) All of the above. 41. Which of the following is the direction of communication? A) Upward. B) Downward. C) Horizontal. D) All of the Above. Show Answer Correct Answer: D) All of the Above. 42. A group of people who jointly oversee the activities of a corporation A) Employees. B) Board of Directors. C) Volunteers. D) None of the above. Show Answer Correct Answer: B) Board of Directors. 43. The structure in which there is separation of ownership & management? A) Sole Proprietorship. B) Company. C) Partnership. D) All the above. Show Answer Correct Answer: B) Company. 44. ..... are part owners of a limited company. They are people or institutions who hold one or more shares in a company. A) Directors. B) Shareholders. C) Managers. D) None of the above. Show Answer Correct Answer: B) Shareholders. 45. Which item does not cause any business risk? A) Beak down. B) Riot. C) Efficiency management. D) Changing Govt Policy. Show Answer Correct Answer: A) Beak down. 46. A ..... is a business with two or more owners: A) Corporation . B) (c) partnership. C) (b) conglomerate. D) (d) public corporatio. Show Answer Correct Answer: B) (c) partnership. 47. What is a key feature of a Public Limited Company? A) Only friends can be members. B) No need for a board of directors. C) Limited number of shareholders. D) Shares can be sold to the public. Show Answer Correct Answer: D) Shares can be sold to the public. 48. ..... is a business owned by one person. A) Public limited company. B) Partnership. C) Sole Trader. D) Joint venture. Show Answer Correct Answer: C) Sole Trader. 49. What is a public limited company allowed to do? A) Have unlimited partners. B) Sell shares to friends only. C) Sell shares to the public. D) Operate without legal requirements. Show Answer Correct Answer: C) Sell shares to the public. 50. What is the minimum number of members required for a Joint Hindu Family Buiness? A) 2. B) 4. C) 1. D) 3. Show Answer Correct Answer: A) 2. 51. Preliminary contract are signed: A) Before the incorporation. B) After incorporation. C) After commencement of business. D) None of the above. Show Answer Correct Answer: A) Before the incorporation. 52. A company is a ..... A) Sole proprietorship. B) Partnership. C) Corporation. D) Business option. Show Answer Correct Answer: C) Corporation. 53. Advantages of this type of business include:easy to start, and you can rely on a good company name and expertise. A) Franchise. B) Corporation. C) Sole Proprietorship. D) Partnership. Show Answer Correct Answer: A) Franchise. 54. The prevailing Companies Act was enacted in the year ..... A) 2013. B) 1947. C) 1985. D) 1956. Show Answer Correct Answer: A) 2013. 55. Which of the following is NOT a feature of a private limited company? A) Shares can be issued to raise capital. B) Shares can be bought and sold on the Stock Exchange. C) All owners of the business have limited liability. D) The business continues after the death of shareholder. Show Answer Correct Answer: B) Shares can be bought and sold on the Stock Exchange. 56. Which of the following comes under the type of co-operative societies A) Consumer co-operatives. B) Producer co-operatives. C) Credit co-operative societies. D) All of the above. Show Answer Correct Answer: D) All of the above. 57. The capital of a company is divided into number of parts each one of which is called ..... A) Intetest. B) Dividend. C) Share. D) Profit. Show Answer Correct Answer: C) Share. 58. This type of business is a contractual agreement with a parent company to sell its products/services in an area. A) Corporation. B) Sole Proprietorship. C) Franchise. D) Partnership. Show Answer Correct Answer: C) Franchise. 59. At which stage of company formation is the company officially registered with the Registrar of Companies and issued a Certificate of Incorporation? A) Capital Subscription stage. B) Commencement of Business stage. C) Promotion stage. D) Registration/Incorporation stage. Show Answer Correct Answer: D) Registration/Incorporation stage. 60. Which Law governs Joint Hindu Family Business? A) Hindu Undivided Family Act 1954. B) Hindu Succession Act 1956. C) Joint Hindu Business Act 1954. D) Hindu Succession Act 1952. Show Answer Correct Answer: B) Hindu Succession Act 1956. ← 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 7Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books