This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 2 Forms Of Business Organisation – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 20 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A ..... is a business with two or more owners: A) Corporation . B) (b) conglomerate. C) (c) partnership. D) (d) public corporatio. Show Answer Correct Answer: C) (c) partnership. 2. What is a key feature of a Public Limited Company? A) Limited number of shareholders. B) Only friends can be members. C) No need for a board of directors. D) Shares can be sold to the public. Show Answer Correct Answer: D) Shares can be sold to the public. 3. ..... is a business owned by one person. A) Sole Trader. B) Partnership. C) Joint venture. D) Public limited company. Show Answer Correct Answer: A) Sole Trader. 4. What is a public limited company allowed to do? A) Have unlimited partners. B) Operate without legal requirements. C) Sell shares to the public. D) Sell shares to friends only. Show Answer Correct Answer: C) Sell shares to the public. 5. What is the minimum number of members required for a Joint Hindu Family Buiness? A) 1. B) 2. C) 3. D) 4. Show Answer Correct Answer: B) 2. 6. Preliminary contract are signed: A) Before the incorporation. B) After incorporation. C) After commencement of business. D) None of the above. Show Answer Correct Answer: A) Before the incorporation. 7. A company is a ..... A) Sole proprietorship. B) Corporation. C) Partnership. D) Business option. Show Answer Correct Answer: B) Corporation. 8. Advantages of this type of business include:easy to start, and you can rely on a good company name and expertise. A) Sole Proprietorship. B) Partnership. C) Corporation. D) Franchise. Show Answer Correct Answer: D) Franchise. 9. The prevailing Companies Act was enacted in the year ..... A) 1956. B) 1947. C) 1985. D) 2013. Show Answer Correct Answer: D) 2013. 10. Which of the following is NOT a feature of a private limited company? A) Shares can be issued to raise capital. B) Shares can be bought and sold on the Stock Exchange. C) All owners of the business have limited liability. D) The business continues after the death of shareholder. Show Answer Correct Answer: B) Shares can be bought and sold on the Stock Exchange. 11. Which of the following comes under the type of co-operative societies A) Consumer co-operatives. B) Producer co-operatives. C) Credit co-operative societies. D) All of the above. Show Answer Correct Answer: D) All of the above. 12. The capital of a company is divided into number of parts each one of which is called ..... A) Dividend. B) Profit. C) Intetest. D) Share. Show Answer Correct Answer: D) Share. 13. There is no separate law and governs this form of business A) Sole proprietorship. B) Partnership. C) Joint Hindu family. D) Joint stock company. Show Answer Correct Answer: A) Sole proprietorship. 14. This type of business is a contractual agreement with a parent company to sell its products/services in an area. A) Sole Proprietorship. B) Partnership. C) Corporation. D) Franchise. Show Answer Correct Answer: D) Franchise. 15. At which stage of company formation is the company officially registered with the Registrar of Companies and issued a Certificate of Incorporation? A) Promotion stage. B) Registration/Incorporation stage. C) Capital Subscription stage. D) Commencement of Business stage. Show Answer Correct Answer: B) Registration/Incorporation stage. 16. Which Law governs Joint Hindu Family Business? A) Hindu Succession Act 1956. B) Joint Hindu Business Act 1954. C) Hindu Undivided Family Act 1954. D) Hindu Succession Act 1952. Show Answer Correct Answer: A) Hindu Succession Act 1956. 17. Which one is NOT a demerit of co-operatives A) Lack of secrecy. B) Government control. C) Difference of opinion among members. D) Efficiency in management. Show Answer Correct Answer: D) Efficiency in management. 18. It is not possible to maintain secrecy and confidentiality in sole proprietorship A) The statement is true. B) The statement is false. C) Depends on the nature of business. D) Depends on the size of business. Show Answer Correct Answer: B) The statement is false. 19. To achieve customer acceptance, the entrepreneur must: A) Identify the problem faced in the marketplace and find a creative solution. B) Identify the problem faced in financing for the project and raise finance. C) Identify ideas that qualify for government support and implement them. D) Identify good talent and build an organisation. Show Answer Correct Answer: A) Identify the problem faced in the marketplace and find a creative solution. 20. The liability of Karta in a joint Hindu family business is A) Limited liability. B) Unlimited liability. C) None. D) Both. Show Answer Correct Answer: B) Unlimited liability. 21. What happens to a Sole Proprietorship if the owner dies? A) The business is sold. B) The business is taken over by partners. C) The business dissolves. D) The business continues. Show Answer Correct Answer: C) The business dissolves. 22. What is the significance of the development stages of a business? A) To determine the number of competitors. B) To assess the environmental impact. C) To understand the challenges and opportunities at different phases. D) To calculate the tax liabilities. Show Answer Correct Answer: C) To understand the challenges and opportunities at different phases. 23. Mention the maximum number of partners in limited liability partnership. A) 2. B) 20. C) 10. D) Unlimited. Show Answer Correct Answer: D) Unlimited. 24. The cooperative society is required to be registered under the Cooperative Society Act ..... A) 2013. B) 1932. C) 1956. D) 1912. Show Answer Correct Answer: D) 1912. 25. What is a disadvantage of partnerships? A) Ease of formation. B) Owners share responsibilities. C) Limited liability. D) Possibility of personality conflict. Show Answer Correct Answer: D) Possibility of personality conflict. ← 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