This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 2 Forms Of Business Organisation – Quiz 21 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 21 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The following are disadvantages of sole proprietorship, EXCEPT A) Limited source of capital. B) Business entity's unlimited existence. C) Proprietor's unlimited liability. D) Creditors can run after the personal assets of the Sole proprietor in case the assets of the business are not enough to cover its existing liabilities. Show Answer Correct Answer: B) Business entity's unlimited existence. 2. What are the advantages of a private limited company over a public limited company? A) Limited liability, separate legal entity. B) Control over who can buy shares. C) Access to greater funds. D) Unlimited liability, shared legal entity. Show Answer Correct Answer: B) Control over who can buy shares. 3. Which of the following is a characteristic of a co-operative? A) Profits are not subject to income tax. B) One vote per share. C) Dividends are paid on a per share basis. D) All of the above. Show Answer Correct Answer: A) Profits are not subject to income tax. 4. Before commencing business, it is necessary to receive minimum subscription in Public Company. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 5. Identify the classification of external trade? A) Export. B) Retail Trade. C) Wholesale Trade. D) None of the above. Show Answer Correct Answer: A) Export. 6. What is the minimum number of members required to form a private company? A) 1. B) 7. C) 2. D) 5. Show Answer Correct Answer: C) 2. 7. Sole proprietorship comes under which sector? A) Joined sector. B) Private sector. C) Public sector. D) None of the above. Show Answer Correct Answer: B) Private sector. 8. A valid definition of a business purpose is to A) Create a customer. B) Maximization profit. C) Serve the Society. D) Increase the wealth. Show Answer Correct Answer: A) Create a customer. 9. The death of Karta will not affect the joint Hindu family business A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 10. Which is NOT a feature of Sole Proprietorship A) Less legal formalities. B) Limited Liability. C) Sole Risk Bearer. D) Receiver of all profits. Show Answer Correct Answer: B) Limited Liability. 11. Which of the following is NOT correct in respect of Minor as a Partner A) Minor Can be admitted to the benefits and profits of a Firm. B) Liability is limited to the capital contributed by minor. C) Minor cannot activiely take ppart in the management of Firm. D) Status of minor partner will not change even after attaining majority age. Show Answer Correct Answer: D) Status of minor partner will not change even after attaining majority age. 12. What does "Separate Legal Entity" mean for a company? A) The company is not recognized by law. B) The company exists independently of its members. C) The company is run by its shareholders. D) The company has no legal status. Show Answer Correct Answer: B) The company exists independently of its members. 13. What is one advantage of being a sole trader? A) Total control over the business. B) Shared responsibilities. C) Unlimited liability. D) Limited capital. Show Answer Correct Answer: A) Total control over the business. 14. An Initial Public Offering (IPO) occurs when a company ..... A) Becomes private limited. B) Goes global. C) Goes public. D) Is owned by government. Show Answer Correct Answer: C) Goes public. 15. What is a cooperative? A) A business with limited liability. B) A franchise operation. C) A group pooling resources to buy in bulk. D) A business owned by the government. Show Answer Correct Answer: C) A group pooling resources to buy in bulk. 16. The primary purpose of the executive summary in a business plan is to: A) Detail the company's financial projections. B) Provide a snapshot of the business plan. C) Describe the management team. D) Outline the marketing strategy. Show Answer Correct Answer: B) Provide a snapshot of the business plan. 17. What is a limitation of a Joint Stock Company? A) Perpetual succession. B) Professional management. C) Limited liability. D) Complex formation. Show Answer Correct Answer: D) Complex formation. 18. Which of the following is the liability of a minor partner A) Unlimited. B) Limited. C) No liability. D) None of the above. Show Answer Correct Answer: B) Limited. 19. What is a unique feature of a One Person Company? A) Multiple shareholders. B) No nominee required. C) Single member. D) Unlimited liability. Show Answer Correct Answer: C) Single member. 20. In companies, shareholders being the owners excercise control ..... A) Directly. B) Indirectly through Board of Directors. C) Personally. D) None of the above. Show Answer Correct Answer: B) Indirectly through Board of Directors. 21. Protecting the interest of small producers is the objective of A) Producer co-operative. B) Consumer co-operative. C) Marketing co-operative. D) Housing co-operative. Show Answer Correct Answer: A) Producer co-operative. 22. The liability of a sole trader is, A) Limited. B) Unlimited. C) Partly Limited. D) None of these. Show Answer Correct Answer: B) Unlimited. 23. How many members are in a sole proprietorship? A) 4. B) 2. C) 1. D) 3. Show Answer Correct Answer: C) 1. 24. Who controls a Joint Hindu Family Business? A) The eldest male member (Karta). B) All family members equally. C) The government. D) A board of directors. Show Answer Correct Answer: A) The eldest male member (Karta). 25. There is no risk in sole tradership. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. ← 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