This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 2 Forms Of Business Organisation – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 2 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is an example of a public sector business? A) Grocery store. B) Hospital. C) Restaurant. D) Factory. Show Answer Correct Answer: B) Hospital. 2. What is a disadvantage of being a sole trader? A) They are easy to set up with few legal requirements. B) They have limited liability. C) Business is often too small to exploit economies of scale. D) Shareholders may disagree and fall out. Show Answer Correct Answer: C) Business is often too small to exploit economies of scale. 3. Categorise the following into Analytical, Synthetical & Processing:1. Soaps Industry; 2. Sugar Industry; 3. Oil Refinery A) Analytical ;Synthetical ; Processing. B) Synthetical; Analytical; Processing. C) Synthetical ;Processing; Analytical. D) None of these. Show Answer Correct Answer: C) Synthetical ;Processing; Analytical. 4. What is a key feature of private limited companies? A) Have separate legal identities. B) Have unlimited liability. C) Require no legal formalities. D) Can sell shares to the public. Show Answer Correct Answer: A) Have separate legal identities. 5. A prospects issued by: A) Private company. B) Public company. C) Public enterprises. D) Public company seeking investment from public. Show Answer Correct Answer: D) Public company seeking investment from public. 6. Partnership is governed by which Act? A) 1986. B) 1932. C) 1956. D) 1999. Show Answer Correct Answer: B) 1932. 7. One of the main disadvantages of a PLC is the A) Loss of control by the owners as additional shares are sold. B) Firms in the public sector are often less efficient. C) Possibility that if a company fails owners might lose personal assets. D) Diseconomies of scale. Show Answer Correct Answer: A) Loss of control by the owners as additional shares are sold. 8. Which of these is most likely related to private company? A) Does not offer its shares to general public. B) Permits easy transfer of its shares. C) Has minimum paid up capital of five lakh. D) No limit of maximum number. Show Answer Correct Answer: A) Does not offer its shares to general public. 9. Which one is NOT a principle of co-operation A) Open Membership. B) Concern for community. C) Copetition among co-operatives. D) Member economic participation. Show Answer Correct Answer: C) Copetition among co-operatives. 10. 'Return of allotment', signed by a director or secretary is filed with the registrar companies within how many days of allotment of shares? A) 15 days. B) 8 days. C) 10 days. D) 30days. Show Answer Correct Answer: D) 30days. 11. What is the maximum number of members in a Private Limited Company? A) 50 members. B) 20 members. C) 100 members. D) 10 members. Show Answer Correct Answer: A) 50 members. 12. In which type of business organisation the owner does not share his/her profit. A) Partnership. B) Cooperative society. C) Sole proprietorship. D) Joint Hindu family. Show Answer Correct Answer: C) Sole proprietorship. 13. The liability of members of a cooperative society is ..... to the extent of their capital contribution. A) LIMITED. B) UMLIMITED. C) All the above. D) None of the above. Show Answer Correct Answer: A) LIMITED. 14. Which is NOT applicable to Particular Partnership A) Formed for accomplishng particular project. B) Activity to be carried on for a particular time period. C) Dissolves automatically when the project or time completes. D) Firm will continue as long as partners wants. Show Answer Correct Answer: D) Firm will continue as long as partners wants. 15. One of the disadvantages of a sole trader business is that: A) Capital is limited to owner's savings and bank loans. B) Decisions take too long to make. C) As they are government owned there is no profit motive. D) The owners may disagree. Show Answer Correct Answer: A) Capital is limited to owner's savings and bank loans. 16. A person who lends his name and goodwill to benefit a partnership firm. A) Secret partner. B) Partner by Estoppel. C) Partner by holding out. D) Nominal partner. Show Answer Correct Answer: D) Nominal partner. 17. Law firms and doctor's offices are examples of ..... A) Sole Proprietorships. B) Partnerships. C) Corporations. D) Franchises. Show Answer Correct Answer: B) Partnerships. 18. Partnership can continue as long as the partners want and is terminated when any partner gives a notice of withdrawal. Identify the type of Partnership. A) General Partnership. B) Particular Partnership. C) Limited Partnership. D) Partnership at will. Show Answer Correct Answer: D) Partnership at will. 19. Which one of the following is an advantage of centralisation? A) It helps to develop the skills of junior managers. B) It avoids overburdening top managers in terms of workload and stress. C) Senior managers can take a wider view of problems and consequences. D) None of the above. Show Answer Correct Answer: C) Senior managers can take a wider view of problems and consequences. 20. ..... society aims to fight against the big capitalists and enhance the bargaining power of the small producers. A) Consumer's cooperative. B) Producer's cooperative. C) Marketing cooperative. D) Farmer's cooperative. Show Answer Correct Answer: B) Producer's cooperative. 21. Oil refinery and sugar mill are classified under which industries? A) Primary. B) Secondary. C) Testing. D) Non of the above. Show Answer Correct Answer: A) Primary. 22. Disadvantage to the franchisee from franchising business. A) Franchisor pays for advertising. B) All supplies are obtained from a central source-the franchisor. C) Training for staff and management is provided by the franchisor. D) Less independence than with operating a non-franchised business. Show Answer Correct Answer: D) Less independence than with operating a non-franchised business. 23. A private limited company's business name often ends in ..... A) Org. B) PLC. C) Ltd. D) Traders. Show Answer Correct Answer: C) Ltd. 24. Which of the following statements are true? I. Variable cost per unit remains to be same. II. Total variable cost will change according to the level of output. A) Variable cost per unit increases with production. B) Total variable cost remains constant regardless of output. C) Variable cost per unit varies with fixed costs. D) Both statements are true. Show Answer Correct Answer: D) Both statements are true. 25. Sole traders are businesses less complicated to run. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. ← PreviousNext →Related QuizzesClass 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 1Class 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 10Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books