This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 2 Forms Of Business Organisation – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 11 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which is the least regulated business form of business? A) Sole Proprietorship. B) Partnership. C) Joint Hindu Family Business. D) Cooperative Society. Show Answer Correct Answer: A) Sole Proprietorship. 2. These business owners may have trouble raising capital. A) Sole proprietorship. B) Partnership. C) Corporation. D) Franchise. Show Answer Correct Answer: A) Sole proprietorship. 3. The structure in which there is separation of ownership and management as per law is called A) Company. B) All business organisations. C) Partnership. D) Sole proprietorship. Show Answer Correct Answer: A) Company. 4. What is the main goal of commercial organisation? A) Social Welfare. B) Providing Services. C) Profit Maximisation. D) Fulfilling Shareholders Needs. Show Answer Correct Answer: C) Profit Maximisation. 5. Which of the following is not a feature of business? A) Profit motive. B) Government ownership. C) Risk and Uncertainty. D) Economic activity. Show Answer Correct Answer: B) Government ownership. 6. Merit of Sole Proprietorship is A) Ease in formation and closure. B) Unlimited liability. C) No separate legal entity. D) No perpetual succession. Show Answer Correct Answer: A) Ease in formation and closure. 7. Maximum number of members in a private limited company is ..... A) 100. B) 50. C) 7. D) 200. Show Answer Correct Answer: D) 200. 8. How is a corporation different from a sole proprietorship or partnership? A) A corporation has only one or two owners. B) A corporation is usually owned by one person. C) A corporation requires a legal charter with the state. D) The owners (stockholders) have limited liability. Show Answer Correct Answer: D) The owners (stockholders) have limited liability. 9. A minor can be admitted to the benefits of an already existing partnership firm- A) With the consent of Managing Partner. B) With the consent of all existing Partners. C) With the consent of the court. D) None of the above. Show Answer Correct Answer: B) With the consent of all existing Partners. 10. Which type of company can easily transfer shares? A) Sole Proprietorship. B) One Person Company. C) Public company. D) Private company. Show Answer Correct Answer: C) Public company. 11. Who becomes 'Karta' in Joint Hindu Family Business? A) By voting of members. B) Senior most member. C) Most Educated member of family. D) Any member can become. Show Answer Correct Answer: B) Senior most member. 12. There is no restriction on transfer of shares in case of private company A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 13. In a Joint Hindu Family Business, what happens if the Karta dies? A) The business is dissolved. B) The next senior male member becomes Karta. C) The business continues without a Karta. D) The business is sold. Show Answer Correct Answer: B) The next senior male member becomes Karta. 14. The people who make the major policy and financial decisions in a corporation are the A) Investors. B) Board of directors. C) Managers. D) Owners. Show Answer Correct Answer: B) Board of directors. 15. Who can be the sole member of a One Person Company (OPC)? A) Any individual. B) Any non-resident. C) Only a foreign citizen. D) Only an Indian citizen and resident. Show Answer Correct Answer: D) Only an Indian citizen and resident. 16. Chief of Hindu family is called Karta. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 17. One of the advantages of a sole trader business is that A) Owners have limited liability. B) Shares can be sold to raise capital. C) Decisions and responsibilities can be shared. D) The owner has complete control over decision making. Show Answer Correct Answer: D) The owner has complete control over decision making. 18. Maximum number of partners allowed in banking sector are ..... A) 20. B) 10. C) 30. D) 5. Show Answer Correct Answer: B) 10. 19. A ..... is where two or more businesses starta new project together, sharing capital, risks and profits. A) Parthenship. B) Joint Venture. C) Sole Trade. D) Public Limited Company. Show Answer Correct Answer: B) Joint Venture. 20. What does LLP stand for? A) Limited Liability Partnership. B) Lying Losers Pos. C) Losing Limited Pace. D) Limited Liability Property. Show Answer Correct Answer: A) Limited Liability Partnership. 21. The most suitable form of organization for risky business is ..... A) Sole proprietorship. B) Partnership firm. C) Joint Hindu Family business. D) Joint Stock Company. Show Answer Correct Answer: D) Joint Stock Company. 22. What is a sole proprietorship? A) A business owned by multiple individuals. B) A business owned by a single individual. C) A joint stock company. D) A cooperative society. Show Answer Correct Answer: B) A business owned by a single individual. 23. There is no limit on maximum member in a public company A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 24. Shortest lifespan A) Sole Proprietorship. B) Partnership. C) Corporation. D) None of the above. Show Answer Correct Answer: A) Sole Proprietorship. 25. Meg and Ria run a boutique in a partnership, sharing profits and losses equally. The assets of the firm are worth ₹ 50, 000, but the firm's debts amount to ₹ 80, 000. Who will be responsible to pay the debt of ₹ 30, 000 over and above the assets? A) Debt will be paid wholly by Meg. B) Debt will be paid wholly by Ria. C) Debt will be paid equally by Meg and Ria. D) Debt will be not be paid by Meg or Ria. Show Answer Correct Answer: C) Debt will be paid equally by Meg and Ria. ← PreviousNext →Related 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 8Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 9Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books