This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 2 Forms Of Business Organisation – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 1 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The liability of sole-trader is ..... A) Limited. B) Unlimited. C) All the above. D) None of the above. Show Answer Correct Answer: B) Unlimited. 2. A legal entity which has a separate identity from its shareholders, whose liability for the company's debts is limited. A) Sole trader. B) Partnership. C) Limited company. D) None of the above. Show Answer Correct Answer: C) Limited company. 3. One of the main drawbacks of many public limited companies is that: A) There can be a loss of control by the original owners as additional shares are sold. B) Firms in the public sector are often less efficient. C) If the company were to fail the shareholders could lose all of their assets. D) Workers have to be asked for their opinions before major decisions are taken. Show Answer Correct Answer: A) There can be a loss of control by the original owners as additional shares are sold. 4. This type of company is not prohibited from inviting public to subscribe to its shares. A) One person company. B) Private company. C) Public company. D) None of the above. Show Answer Correct Answer: C) Public company. 5. Members of Joint Hindu Family are known as: A) Partners. B) Coparceners. C) Karta. D) Members. Show Answer Correct Answer: B) Coparceners. 6. The keyword Multinational means A) In one country. B) In every country. C) In more than one country. D) None of the above. Show Answer Correct Answer: C) In more than one country. 7. Physicians, web designers, and furniture movers are A) Intermediaries. B) Nonprofit corporations. C) Manufacturers. D) Service businesses. Show Answer Correct Answer: D) Service businesses. 8. Which of the following is the primary objective of a not-for-profit organisation? A) Profit Maximisation. B) Social Welfare. C) Not To Earn Profits. D) None of the above. Show Answer Correct Answer: C) Not To Earn Profits. 9. How much did rajat invest? A) 100000. B) 200000. C) 300000. D) 400000. Show Answer Correct Answer: B) 200000. 10. Wholesalers providing warehouse facilities provides manufacturer? A) Goods utility. B) Store utility. C) Time utility. D) Non of the above. Show Answer Correct Answer: A) Goods utility. 11. Which of the businesses has unlimited liability? A) Sole Trader. B) Partnership. C) Both. D) None of the above. Show Answer Correct Answer: C) Both. 12. A sole trader always must work on their own. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 13. An entrepreneur who enters the market with a product or service which is based on new technology is called: A) Innovative entrepreneur. B) Replicative entrepreneur. C) Opportunity entrepreneur. D) Necessity entrepreneur. Show Answer Correct Answer: A) Innovative entrepreneur. 14. What type of business consists of two or more people? A) Sole proprietorship. B) Company. C) Partnership. D) Franchise. Show Answer Correct Answer: C) Partnership. 15. Membership in Hindu Undivided family business is given by ..... A) Capital contribution. B) Birth. C) Ownership right. D) Liability. Show Answer Correct Answer: B) Birth. 16. Joe is starting a small home-based consulting business. He possesses computer knowledge but lacks marketing skills. The form of business ownership that Joe might consider establishing is a(n) A) Corporation. B) Sole proprietorship. C) Monopoly. D) General partnership. Show Answer Correct Answer: D) General partnership. 17. It is necessary to get every company incorporated, whether private or public. A) True. B) False. C) Cant say. D) None of the above. Show Answer Correct Answer: A) True. 18. Which advantage of sole trader businesses relates to flexibility and autonomy? A) Limited personal liability for business debts. B) Ability to raise capital through the sale of shares. C) Access to specialized skills and resources. D) Direct control over business operations and decision-making. Show Answer Correct Answer: D) Direct control over business operations and decision-making. 19. Ownership represented by stock A) Sole Proprietorship. B) Partnership. C) Corporation. D) None of the above. Show Answer Correct Answer: C) Corporation. 20. Which is NOT Correct in repect of LLP A) Liability of all partners are limited. B) Hybrid form of business combining features of partnerships and companies. C) Registratio is Optional. D) Has perpetual succession. Show Answer Correct Answer: C) Registratio is Optional. 21. Which act governs Cooperative Societies in India? A) Hindu Law. B) Companies Act, 2013. C) Indian Partnership Act, 1932. D) Co-operative Societies Act, 1912. Show Answer Correct Answer: D) Co-operative Societies Act, 1912. 22. A stock market flotation occurs when a company ..... A) Goes local. B) Goes global. C) Goes public. D) Goes limited. Show Answer Correct Answer: C) Goes public. 23. How do partners in a Joint Venture share the outcomes of their collaboration? A) By not sharing profits. B) By sharing risks and rewards. C) By ignoring each other's contributions. D) By avoiding teamwork. Show Answer Correct Answer: B) By sharing risks and rewards. 24. Unlimited Liability A) Co-parceners. B) Shareholders. C) Karta. D) Members of cooperative society. Show Answer Correct Answer: C) Karta. 25. Which clause of memorandum defines the powers of the company? A) Association clause. B) Object clause. C) Liability clause. D) Capital clause. Show Answer Correct Answer: B) Object clause. 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