This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 2 Forms Of Business Organisation – Quiz 18 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 18 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A document that partners can refer to when a conflict happens in a partnership. A) The deed of partnership. B) Articles of Association. C) The constitution. D) Memorandum of Association. Show Answer Correct Answer: A) The deed of partnership. 2. The liability of Karta or Karanavar 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: B) Unlimited liability. 3. What are the key features of a franchise agreement? A) Weather conditions, local language spoken, public transportation options. B) Color of the franchise logo, office location, employee dress code. C) Rights and obligations of both parties, fees, renewal/termination terms. D) Number of employees, company mission statement, CEO's favorite food. Show Answer Correct Answer: C) Rights and obligations of both parties, fees, renewal/termination terms. 4. The board of directors of a company is elected by A) Owners. B) General public. C) Shareholders. D) Government. Show Answer Correct Answer: C) Shareholders. 5. An advantage of setting up as an incorporated business rather than an unincorporated business is that the business: A) Will be better at making decisions. B) Will have unlimited liability. C) Will be able to obtain bank finance. D) Remains in existence after a change in ownership. Show Answer Correct Answer: D) Remains in existence after a change in ownership. 6. The capital of a company is divided into number of parts each one of which are called A) A) Share. B) (b) Dividend. C) (c) Profit. D) (d) Interest. Show Answer Correct Answer: A) A) Share. 7. Limitation of Sole Proprietorship business is A) Direct incentive. B) Confidentiality of information. C) Limited managerial ability. D) Quick decision making. Show Answer Correct Answer: C) Limited managerial ability. 8. One of the reasons an entrepreneur might buy a franchise is A) It is cheaper than setting up a new business venture. B) There is complete control over important decisions. C) The risk of failure is lower. D) Can use own creativity in the new business. Show Answer Correct Answer: C) The risk of failure is lower. 9. The form of business organisation which is specifically found in India is: A) Sole proprietorship. B) NGO. C) Cooperative society. D) Joint Hindu Family business. Show Answer Correct Answer: D) Joint Hindu Family business. 10. At least 10 adults, no maximum limit in case of ..... A) Cooperative Society. B) Joint Hindu Family. C) Partnership. D) Company. Show Answer Correct Answer: A) Cooperative Society. 11. 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. 12. 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. 13. Which one is NOT applicable to Co-operative Societies A) Working together. B) Self help through mutual help. C) Service motive. D) Profit Motive. Show Answer Correct Answer: D) Profit Motive. 14. 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. 15. Every company must file AOA. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 16. Which type of business allows the owner to keep all of the profit for him/herself? A) Partnership. B) Franchise. C) Sole Proprietorship. D) Corporation. Show Answer Correct Answer: C) Sole Proprietorship. 17. What happens to the profits in a Sole Proprietorship? A) Reinvested in the business. B) Shared with partners. C) Go to the owner. D) Paid as taxes. Show Answer Correct Answer: C) Go to the owner. 18. A partner who is not actually involved in the partnership but lends his name for public relations purposes is A) Silent partner. B) General partner. C) Nominal partner. D) Dominant partner. Show Answer Correct Answer: C) Nominal partner. 19. How many partners can be in a Partnership? A) 1 to 5 partners. B) 1 to 20 partners. C) 1 to 10 partners. D) 1 to 50 partners. Show Answer Correct Answer: B) 1 to 20 partners. 20. Aprivate limited companymaychangeintoapubliclimited company becauseitwants: A) Limitedliability. B) Toraiseadditionalfinance. C) Unlimitedliability. D) Toavoidtakeover. Show Answer Correct Answer: B) Toraiseadditionalfinance. 21. Which of the following company can issue shares in the stock market to be subscribed by the general public? A) Private Limited Company. B) One Person Company. C) Partnership. D) Public Limited Company. Show Answer Correct Answer: D) Public Limited Company. 22. A person who allowes the use of his name by the firm but not contributes capital is called ..... A) Active Partner. B) Sleeping Partner. C) Nominal Partner. D) Social Partner. Show Answer Correct Answer: C) Nominal Partner. 23. An entrepreneur is who A) Enforces government regulations. B) Takes the risk to earn profit. C) Sets the interest rates at banks. D) Manages financial investments. Show Answer Correct Answer: B) Takes the risk to earn profit. 24. Membership in an HUF business is obtained by ..... A) Purchasing shares. B) Contributing capital. C) Entering into an agreement. D) By birth in a Hindu Undivided Family. Show Answer Correct Answer: D) By birth in a Hindu Undivided Family. 25. 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. ← 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