This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 2 Forms Of Business Organisation – Quiz 17 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 17 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The form of business operated by two (2) or more persons A) Sole trader. B) Public limited company. C) Partnership. D) Private limited company. Show Answer Correct Answer: C) Partnership. 2. 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) Partnership. B) Cooperative. C) Corporation. D) Sole proprietorship. Show Answer Correct Answer: D) Sole proprietorship. 3. 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. 4. 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. 5. Maximum number of members in private company are: A) 50. B) 100. C) 200. D) 20. Show Answer Correct Answer: C) 200. 6. What is a primary advantage of a joint stock company? A) Single ownership. B) Unlimited liability. C) Limited liability. D) No legal formalities. Show Answer Correct Answer: C) Limited liability. 7. 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 funds. C) Dilution of control. D) Limited managerial ability. Show Answer Correct Answer: B) Limited funds. 8. Centralized control in MNCs implies control exercise by? A) Branches. B) Subsidiaries. C) Headquarters. D) Parliament. Show Answer Correct Answer: C) Headquarters. 9. In which business, the support service activities are categorized? A) Commercial Industries. B) Primary Industries. C) Secondary Industries. D) Territory Industries. Show Answer Correct Answer: A) Commercial Industries. 10. 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. 11. A partner whose association with the firm is unknown to the general public is called A) Active partner. B) Sleeping partner. C) Nominal partner. D) Secret partner. Show Answer Correct Answer: D) Secret partner. 12. 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. 13. 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. 14. Which statement is FALSE in respect of HUF business A) HUF business will have continuity. B) If Karta dies, the next elder member will assue the role of Karta. C) Minor can become a member in HUF. D) Minor Cannot be a member. Show Answer Correct Answer: D) Minor Cannot be a member. 15. What is the minimum limit of members in case of a Private Company? A) 2. B) 7. C) 10. D) 50. Show Answer Correct Answer: A) 2. 16. A business owner who prefers to maintain complete control of all business activities might consider structuring the venture as a(n) A) Sole proprietorship. B) General partnership. C) Franchise. D) Corporation. Show Answer Correct Answer: A) Sole proprietorship. 17. 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) Corporation. B) Partnership. C) Proprietorship. D) S corporation. Show Answer Correct Answer: B) Partnership. 18. 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) Sleeping partner. B) Active partner. C) Partner by ESTOPPEL. D) Partner by holding out. Show Answer Correct Answer: C) Partner by ESTOPPEL. 19. Members in HUF business are called A) Karta. B) Male members. C) Female members. D) Coparceners. Show Answer Correct Answer: D) Coparceners. 20. Which one is NOT a type of Partner in Partnership firms A) Active Partner. B) Sleeping Partner. C) Nominal Partner. D) Social Partner. Show Answer Correct Answer: D) Social Partner. 21. The head of Joint Hindu Family Business is called as A) KARTA. B) Owner. C) Manager. D) Major partner. Show Answer Correct Answer: A) KARTA. 22. Which document is subsidiary of the MOA A) Prospectus. B) Articles of association. C) Consent of directors. D) Table A. Show Answer Correct Answer: A) Prospectus. 23. 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. 24. Sole Proprietors have ..... liability A) Limited. B) Unlimited. C) Joint and Limited. D) Joint and Unlimited. Show Answer Correct Answer: B) Unlimited. 25. 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) General Partnership. B) Particular Partnership. C) Partnership at will. D) Limited Partnership. Show Answer Correct Answer: B) Particular Partnership. ← 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