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 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 9 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which one is NOT a demerit of co-operatives A) Lack of secrecy. B) Difference of opinion among members. C) Efficiency in management. D) Government control. Show Answer Correct Answer: C) Efficiency in management. 2. To achieve customer acceptance, the entrepreneur must: A) Identify the problem faced in the marketplace and find a creative solution. B) Identify the problem faced in financing for the project and raise finance. C) Identify ideas that qualify for government support and implement them. D) Identify good talent and build an organisation. Show Answer Correct Answer: A) Identify the problem faced in the marketplace and find a creative solution. 3. The liability of Karta in a joint Hindu family business is A) Limited liability. B) Unlimited liability. C) None. D) Both. Show Answer Correct Answer: B) Unlimited liability. 4. What happens to a Sole Proprietorship if the owner dies? A) The business dissolves. B) The business continues. C) The business is sold. D) The business is taken over by partners. Show Answer Correct Answer: A) The business dissolves. 5. What is the significance of the development stages of a business? A) To determine the number of competitors. B) To assess the environmental impact. C) To understand the challenges and opportunities at different phases. D) To calculate the tax liabilities. Show Answer Correct Answer: C) To understand the challenges and opportunities at different phases. 6. Mention the maximum number of partners in limited liability partnership. A) 10. B) 2. C) Unlimited. D) 20. Show Answer Correct Answer: C) Unlimited. 7. The cooperative society is required to be registered under the Cooperative Society Act ..... A) 2013. B) 1956. C) 1932. D) 1912. Show Answer Correct Answer: D) 1912. 8. What is a disadvantage of partnerships? A) Limited liability. B) Ease of formation. C) Owners share responsibilities. D) Possibility of personality conflict. Show Answer Correct Answer: D) Possibility of personality conflict. 9. The following are disadvantages of sole proprietorship, EXCEPT A) Limited source of capital. B) Business entity's unlimited existence. C) Proprietor's unlimited liability. D) Creditors can run after the personal assets of the Sole proprietor in case the assets of the business are not enough to cover its existing liabilities. Show Answer Correct Answer: B) Business entity's unlimited existence. 10. What are the advantages of a private limited company over a public limited company? A) Control over who can buy shares. B) Access to greater funds. C) Unlimited liability, shared legal entity. D) Limited liability, separate legal entity. Show Answer Correct Answer: A) Control over who can buy shares. 11. Which of the following is a characteristic of a co-operative? A) Profits are not subject to income tax. B) One vote per share. C) Dividends are paid on a per share basis. D) All of the above. Show Answer Correct Answer: A) Profits are not subject to income tax. 12. Before commencing business, it is necessary to receive minimum subscription in Public Company. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 13. Identify the classification of external trade? A) Export. B) Retail Trade. C) Wholesale Trade. D) None of the above. Show Answer Correct Answer: A) Export. 14. What is the minimum number of members required to form a private company? A) 5. B) 1. C) 2. D) 7. Show Answer Correct Answer: C) 2. 15. Sole proprietorship comes under which sector? A) Joined sector. B) Private sector. C) Public sector. D) None of the above. Show Answer Correct Answer: B) Private sector. 16. A valid definition of a business purpose is to A) Increase the wealth. B) Maximization profit. C) Create a customer. D) Serve the Society. Show Answer Correct Answer: C) Create a customer. 17. The death of Karta will not affect the joint Hindu family business A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 18. Which is NOT a feature of Sole Proprietorship A) Less legal formalities. B) Limited Liability. C) Sole Risk Bearer. D) Receiver of all profits. Show Answer Correct Answer: B) Limited Liability. 19. Which of the following is NOT correct in respect of Minor as a Partner A) Minor Can be admitted to the benefits and profits of a Firm. B) Liability is limited to the capital contributed by minor. C) Minor cannot activiely take ppart in the management of Firm. D) Status of minor partner will not change even after attaining majority age. Show Answer Correct Answer: D) Status of minor partner will not change even after attaining majority age. 20. What does "Separate Legal Entity" mean for a company? A) The company is run by its shareholders. B) The company is not recognized by law. C) The company exists independently of its members. D) The company has no legal status. Show Answer Correct Answer: C) The company exists independently of its members. 21. What is one advantage of being a sole trader? A) Unlimited liability. B) Total control over the business. C) Limited capital. D) Shared responsibilities. Show Answer Correct Answer: B) Total control over the business. 22. An Initial Public Offering (IPO) occurs when a company ..... A) Is owned by government. B) Goes public. C) Goes global. D) Becomes private limited. Show Answer Correct Answer: B) Goes public. 23. What is a cooperative? A) A business owned by the government. B) A business with limited liability. C) A group pooling resources to buy in bulk. D) A franchise operation. Show Answer Correct Answer: C) A group pooling resources to buy in bulk. 24. The primary purpose of the executive summary in a business plan is to: A) Describe the management team. B) Outline the marketing strategy. C) Provide a snapshot of the business plan. D) Detail the company's financial projections. Show Answer Correct Answer: C) Provide a snapshot of the business plan. 25. What is a limitation of a Joint Stock Company? A) Perpetual succession. B) Complex formation. C) Limited liability. D) Professional management. Show Answer Correct Answer: B) Complex formation. 26. Which of the following is the liability of a minor partner A) Unlimited. B) Limited. C) No liability. D) None of the above. Show Answer Correct Answer: B) Limited. 27. What is a unique feature of a One Person Company? A) Unlimited liability. B) Multiple shareholders. C) Single member. D) No nominee required. Show Answer Correct Answer: C) Single member. 28. In companies, shareholders being the owners excercise control ..... A) Directly. B) Indirectly through Board of Directors. C) Personally. D) None of the above. Show Answer Correct Answer: B) Indirectly through Board of Directors. 29. Protecting the interest of small producers is the objective of A) Producer co-operative. B) Marketing co-operative. C) Consumer co-operative. D) Housing co-operative. Show Answer Correct Answer: A) Producer co-operative. 30. The liability of a sole trader is, A) Limited. B) Unlimited. C) Partly Limited. D) None of these. Show Answer Correct Answer: B) Unlimited. 31. How many members are in a sole proprietorship? A) 1. B) 3. C) 2. D) 4. Show Answer Correct Answer: A) 1. 32. Who controls a Joint Hindu Family Business? A) The eldest male member (Karta). B) All family members equally. C) The government. D) A board of directors. Show Answer Correct Answer: A) The eldest male member (Karta). 33. There is no risk in sole tradership. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 34. What is a limitation of a Partnership? A) Sharing of profits. B) Easy to form. C) Chances of conflict. D) Unlimited liability. Show Answer Correct Answer: C) Chances of conflict. 35. A ..... partner is one whose association with the firm is unknown to the general public. A) Sleeping. B) Nominal. C) Secret. D) Active. Show Answer Correct Answer: C) Secret. 36. Which of the following is not an advantage of Partnership A) Easy to form. B) Unlimited liability. C) Balanced decisions. D) Sharing of losses. Show Answer Correct Answer: B) Unlimited liability. 37. Which is NOT a merit of Sole Proprietorship A) Direct beneficiary of profits and incentives. B) Quick decision making. C) Confidentiality of business information. D) Lack of Continuity of Business. Show Answer Correct Answer: D) Lack of Continuity of Business. 38. Which of the following statements about the informal organisation is not true? A) The influence of the informal organisation was highlighted by the Hawthorne Studies, in the way group norms and dynamics affected productivity. B) Informal organisation can pose a threat to employee health and safety. C) Informal organisation can stimulate innovation. D) Managers in positions of authority generally cannot be part of the informal organisation. Show Answer Correct Answer: D) Managers in positions of authority generally cannot be part of the informal organisation. 39. Which one is NOT a merit of company A) Unlimited liability. B) Free transferability of shares. C) Large finanial resources. D) Perpetual existence. Show Answer Correct Answer: A) Unlimited liability. 40. Anyone can buy shares of a public limited company. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 41. Which of the following statements are true regarding Star-up I. Which was opened less than 7 years II. Annual turnover less than 25 crores A) Both statements are false. B) Annual turnover greater than 50 crores. C) Both statements I and II are true. D) Opened more than 10 years ago. Show Answer Correct Answer: C) Both statements I and II are true. 42. A Govt. company is any company in which the paid up capital held by the Govt. is not less than? A) 51%. B) 50%. C) 49%. D) 25%. Show Answer Correct Answer: A) 51%. 43. Name the business organisation which has a legal status independent of its members. A) Sole proprietorship. B) HUF. C) Cooperative Societies. D) Joint Stock Company. Show Answer Correct Answer: D) Joint Stock Company. 44. Sole proprietorship business is best suited for A) Large scale. B) Small scale. C) Medium scale. D) All of these. Show Answer Correct Answer: B) Small scale. 45. One important advantage of forming a partnership is that this form of business organization gives each owner sole control over the business. A) True. B) Fale. C) All the above. D) None of the above. Show Answer Correct Answer: B) Fale. 46. Which of the following is not a management function? A) Co-operating. B) Planning. C) Staffing. D) Controlling. Show Answer Correct Answer: B) Planning. 47. .A Private company can raised funds after issuing prospectus. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 48. The board of directors of a joint stock company is selected by: A) General public. B) Employees. C) Government bodies. D) Shareholders. Show Answer Correct Answer: D) Shareholders. 49. ..... is considered as birth certificate of the company. A) Certificate of Incorporation. B) Certificate of Commencement. C) Certificate of Capital Subscription. D) All of the above. Show Answer Correct Answer: A) Certificate of Incorporation. 50. All members of a HUF business will have ..... right over the ancesteral property A) Proportinal right of their capital contribution. B) Proportional to their personal assets. C) Equal rights. D) Differential right for male and female members. Show Answer Correct Answer: C) Equal rights. 51. These are not legally registered as companies or corporations. A) Unincorporated businesses. B) Incorporated businesses. C) All the above. D) None of the above. Show Answer Correct Answer: A) Unincorporated businesses. 52. As per Companies Act, 2014, Misc. Rule, the maximum number of partners can be: A) 10. B) 100. C) 20. D) 50. Show Answer Correct Answer: D) 50. 53. 'The documents that serve as constitution of the company' and 'the document that serves as doctrine of indoor management' are as follows: A) Prospectus and Articles of Association respectively. B) Memorandum and Articles of Association respectively. C) Memorandum and Prospectus respectively. D) None of the above. Show Answer Correct Answer: B) Memorandum and Articles of Association respectively. 54. Cooperative Societies are compulsorily registered under which of the following Act: A) The Cooperative Societies Act, 1912. B) The Companies Act, 2013. C) The Cooperative Societies Act, 1956. D) The Cooperative Societies Act, 1922. Show Answer Correct Answer: A) The Cooperative Societies Act, 1912. 55. The minimum number of person's required to form a co-operative society is ..... A) 3. B) 2. C) 7. D) 10. Show Answer Correct Answer: D) 10. 56. Which is not limitation of sole proprietorship form of business? A) Limited Managerial Skill. B) Limited Resources. C) Limited liability. D) Lack of continuity. Show Answer Correct Answer: C) Limited liability. 57. Which of these statements about Public Limited Companies (PLC) is true? A) A PLC doesn't have to offer its shares on a stock exchange. B) A PLC can have limited number of shareholders. C) Shareholders in a PLC do not have limited liability. D) The general public may invest in any PLC. Show Answer Correct Answer: D) The general public may invest in any PLC. 58. Cooperative Societies A) Unlimited Liability. B) Common Seal. C) Profit Motive. D) Democratic Management. Show Answer Correct Answer: D) Democratic Management. 59. A nominal partner is one who allows the use his/her name by a firm, but does not contribute capital. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 60. There is a separate law that governs sole proprietorship. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. ← 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 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books