This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 2 Forms Of Business Organisation – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 22 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Minimum number of members required to form a public company is: A) 12. B) 1. C) 7. D) 2. Show Answer Correct Answer: C) 7. 2. What is a limitation of a Partnership? A) Unlimited liability. B) Easy to form. C) Sharing of profits. D) Chances of conflict. Show Answer Correct Answer: D) Chances of conflict. 3. A ..... partner is one whose association with the firm is unknown to the general public. A) Active. B) Sleeping. C) Secret. D) Nominal. Show Answer Correct Answer: C) Secret. 4. Which of the following is not an advantage of Partnership A) Easy to form. B) Balanced decisions. C) Unlimited liability. D) Sharing of losses. Show Answer Correct Answer: C) Unlimited liability. 5. Which is NOT a merit of Sole Proprietorship A) Direct beneficiary of profits and incentives. B) Quick decision making. C) Confidentiality of business information. D) Lack of Continuity of Business. Show Answer Correct Answer: D) Lack of Continuity of Business. 6. Which of the following statements about the informal organisation is not true? A) The influence of the informal organisation was highlighted by the Hawthorne Studies, in the way group norms and dynamics affected productivity. B) Informal organisation can pose a threat to employee health and safety. C) Informal organisation can stimulate innovation. D) Managers in positions of authority generally cannot be part of the informal organisation. Show Answer Correct Answer: D) Managers in positions of authority generally cannot be part of the informal organisation. 7. Which one is NOT a merit of company A) Large finanial resources. B) Perpetual existence. C) Free transferability of shares. D) Unlimited liability. Show Answer Correct Answer: D) Unlimited liability. 8. Anyone can buy shares of a public limited company. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 9. Which of the following statements are true regarding Star-up I. Which was opened less than 7 years II. Annual turnover less than 25 crores A) Both statements are false. B) Annual turnover greater than 50 crores. C) Both statements I and II are true. D) Opened more than 10 years ago. Show Answer Correct Answer: C) Both statements I and II are true. 10. A Govt. company is any company in which the paid up capital held by the Govt. is not less than? A) 51%. B) 49%. C) 50%. D) 25%. Show Answer Correct Answer: A) 51%. 11. Name the business organisation which has a legal status independent of its members. A) HUF. B) Sole proprietorship. C) Joint Stock Company. D) Cooperative Societies. Show Answer Correct Answer: C) Joint Stock Company. 12. Sole proprietorship business is best suited for A) Large scale. B) Small scale. C) Medium scale. D) All of these. Show Answer Correct Answer: B) Small scale. 13. One important advantage of forming a partnership is that this form of business organization gives each owner sole control over the business. A) True. B) Fale. C) All the above. D) None of the above. Show Answer Correct Answer: B) Fale. 14. Which of the following is not a management function? A) Planning. B) Staffing. C) Co-operating. D) Controlling. Show Answer Correct Answer: A) Planning. 15. .A Private company can raised funds after issuing prospectus. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 16. The structure in which there is separation of ownership and management is called: A) Sole proprietorship. B) (b) Partnership. C) (c) Company. D) (d) All business organization. Show Answer Correct Answer: C) (c) Company. 17. The board of directors of a joint stock company is selected by: A) General public. B) Government bodies. C) Shareholders. D) Employees. Show Answer Correct Answer: C) Shareholders. 18. ..... is considered as birth certificate of the company. A) Certificate of Incorporation. B) Certificate of Commencement. C) Certificate of Capital Subscription. D) All of the above. Show Answer Correct Answer: A) Certificate of Incorporation. 19. All members of a HUF business will have ..... right over the ancesteral property A) Proportinal right of their capital contribution. B) Proportional to their personal assets. C) Equal rights. D) Differential right for male and female members. Show Answer Correct Answer: C) Equal rights. 20. These are not legally registered as companies or corporations. A) Unincorporated businesses. B) Incorporated businesses. C) All the above. D) None of the above. Show Answer Correct Answer: A) Unincorporated businesses. 21. As per Companies Act, 2014, Misc. Rule, the maximum number of partners can be: A) 10. B) 20. C) 50. D) 100. Show Answer Correct Answer: C) 50. 22. 'The documents that serve as constitution of the company' and 'the document that serves as doctrine of indoor management' are as follows: A) Prospectus and Articles of Association respectively. B) Memorandum and Articles of Association respectively. C) Memorandum and Prospectus respectively. D) None of the above. Show Answer Correct Answer: B) Memorandum and Articles of Association respectively. 23. Cooperative Societies are compulsorily registered under which of the following Act: A) The Companies Act, 2013. B) The Cooperative Societies Act, 1922. C) The Cooperative Societies Act, 1956. D) The Cooperative Societies Act, 1912. Show Answer Correct Answer: D) The Cooperative Societies Act, 1912. 24. The minimum number of person's required to form a co-operative society is ..... A) 10. B) 2. C) 7. D) 3. Show Answer Correct Answer: A) 10. 25. Which is not limitation of sole proprietorship form of business? A) Limited Resources. B) Limited Managerial Skill. C) Limited liability. D) Lack of continuity. Show Answer Correct Answer: C) Limited liability. ← 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