This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 2 Forms Of Business Organisation – Quiz 23 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 23 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of these statements about Public Limited Companies (PLC) is true? A) The general public may invest in any PLC. B) Shareholders in a PLC do not have limited liability. C) A PLC can have limited number of shareholders. D) A PLC doesn't have to offer its shares on a stock exchange. Show Answer Correct Answer: A) The general public may invest in any PLC. 2. Cooperative Societies A) Democratic Management. B) Unlimited Liability. C) Common Seal. D) Profit Motive. Show Answer Correct Answer: A) Democratic Management. 3. A nominal partner is one who allows the use his/her name by a firm, but does not contribute capital. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 4. There is a separate law that governs sole proprietorship. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 5. LLP Act was passed in ..... A) 2008. B) 2005. C) 1932. D) 2013. Show Answer Correct Answer: A) 2008. 6. One of the advantages of a partnership form of business organisation is that: A) All partners always have limited liability. B) Shares can be sold on the Stock Exchange. C) The business survives the death of the partners. D) The business has access to more capital than a sole trader. Show Answer Correct Answer: D) The business has access to more capital than a sole trader. 7. The minimum and maximum number of partners in a partnership firm are: A) 2 and 100 respectively. B) 2 and 50 respectively. C) 10 and 100 respectively. D) 10 and 50 respectively. Show Answer Correct Answer: B) 2 and 50 respectively. 8. What type of tax do partners in a Partnership pay? A) No tax. B) Corporate tax. C) Personal income tax. D) Sales tax. Show Answer Correct Answer: C) Personal income tax. 9. A sole proprietor enjoys limited liability A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 10. A business with one owner is known as a: A) Company. B) Sole trader. C) Partnership. D) None of the above. Show Answer Correct Answer: B) Sole trader. 11. The capital of company is divided into number of parts and each part is known as ..... A) Capital. B) Borrowing. C) Shares. D) None of these. Show Answer Correct Answer: C) Shares. 12. Appointment of underwriters is necessary in the capital subscription stage. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 13. How is a joint stock company different from other types of organizations? A) It does not have a separate legal existence. B) Its members do not contribute money. C) It cannot be dissolved by law. D) It has a separate legal existence. Show Answer Correct Answer: D) It has a separate legal existence. 14. The maximum number of partners allowed in the banking business are A) Two. B) (b) Twenty. C) (c) No limit. D) (d) Ten. Show Answer Correct Answer: D) (d) Ten. 15. Which one is NOT a featre of company A) Seperation of Ownership and Control. B) Common Seal. C) Registration/ Incorporation is optional. D) Legal person created by law. Show Answer Correct Answer: C) Registration/ Incorporation is optional. 16. Whih is NOT correct in respect of secret partner A) Contributes Capital. B) Publically participates in the management of firm. C) Unlimited Liability. D) Shares Profits or Losses. Show Answer Correct Answer: B) Publically participates in the management of firm. 17. Partnership is the relation which subsists between persons who have agreed to combine their property, labour or skill in some business and to share the profits between them. A) True. B) False. C) Can't say. D) Partly true. Show Answer Correct Answer: A) True. 18. Which of the following is not a form of business organization based on ownership? A) Sole Proprietorship. B) Partnership. C) Corporation. D) Service. Show Answer Correct Answer: D) Service. 19. Name the form of business organisation in which members are jointly and individually liable for payment of debts. A) *Joint Hindu Family Business. B) *Co-operative Society. C) *Partnership. D) *Sole Proprietorship. Show Answer Correct Answer: C) *Partnership. 20. What type of business structure is owned by many people? A) Company. B) Sole proprietorship. C) Partnership. D) Firm. Show Answer Correct Answer: A) Company. 21. Which is not a limitation of Sole proprietorship. A) Limited resources. B) Limited life of business. C) Easy formation. D) Limited managerial ability. Show Answer Correct Answer: B) Limited life of business. 22. What is the limit of members in case of a Private Company? A) 2. B) 7. C) 10. D) 50. Show Answer Correct Answer: D) 50. 23. Important aspects of a limited company, such as thename of the firm, information about the stock issued, and a description of the firm's operations, arecontained in a: A) Mission. B) Articles of association. C) Memorandum of association. D) Policy. E) Prospectus. Show Answer Correct Answer: C) Memorandum of association. 24. Which of the following is a disadvantage of a Cooperative Society? A) Limited capital. B) Service motive. C) Voluntary membership. D) Democratic control. Show Answer Correct Answer: A) Limited capital. 25. Which of the following company offers protection of limited liability for its members? A) One Person Company. B) Limited Liability Company. C) Private Limited Company. D) Partnership. Show Answer Correct Answer: B) Limited Liability Company. ← 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