This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 2 Forms Of Business Organisation – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 24 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the primary reason for choosing a company form of business? A) Easy closure. B) Limited liability. C) Personal attention. D) Low cost. Show Answer Correct Answer: B) Limited liability. 2. In JHFB ..... has unlimited liability . A) Member. B) HUF. C) Karta. D) All of the above. Show Answer Correct Answer: C) Karta. 3. Joint Stock Company has to follow a certain specified legal procedure forits formation. Arrange the following steps of formation in a proper order.I. Capital subscription stages II. PromotionIII. Commencement of business IV. Incorporation Select from the following options: A) III, II, I, IV. B) II, IV, III, I. C) IV, II, III, I. D) II, IV, I, III. Show Answer Correct Answer: D) II, IV, I, III. 4. As per SEBI guidelines minimum subscription of shares will be A) 100%. B) 90%. C) 70%. D) 50%. Show Answer Correct Answer: B) 90%. 5. Main disadvantage of unlimited partnership is ..... A) Unlimited Liability. B) Limited Liability. C) Resptricted capital. D) None of these. Show Answer Correct Answer: A) Unlimited Liability. 6. Vashisht is the promoter of a company. He was in the process of making an application to a stock exchange for listing the securities. The allotment will become void if the company does not receive the permission within the stipulated time frame of A) Two weeks from the date of closure of subscription. B) Ten months from the date of closure of subscription. C) Ten weeks from the date of closure of subscription. D) None of the above. Show Answer Correct Answer: C) Ten weeks from the date of closure of subscription. 7. ..... type of partnership was not allowed before 1991. A) Limited Liability Partnership. B) Unlimited Liability Partnership. C) Specific Libility Partnership. D) None of the above. Show Answer Correct Answer: A) Limited Liability Partnership. 8. Sole traders and Partnerships are A) Incorporated. B) Profit making. C) Unincorporated. D) Shareholding. Show Answer Correct Answer: C) Unincorporated. 9. In ..... partnership, all of the partners actively run the business and are liable for company debts. A) A limited. B) Public. C) An unlimited. D) None of the above. Show Answer Correct Answer: C) An unlimited. 10. One of the disadvantages of an entrepreneur buying a new franchise is A) The profits of the franchisor's business will be lower. B) A share of the set up costs will be paid to the franchisor. C) Consumers are less likley to not all decisions are taken by the franchisee. D) Consumers are less likley to have heard of the franchise. Show Answer Correct Answer: C) Consumers are less likley to not all decisions are taken by the franchisee. 11. For which of the following type of business, do you think a sole proprietorship form of organisation would be more suitable? A) Legal consultancy. B) Grocery store. C) Internet cafe. D) Craft centre. Show Answer Correct Answer: B) Grocery store. 12. Suppose Amit is a shareholder in a company holding 500 shares of 10 each on which he has already paid 8 per share. His liability in the event of losses or company's failure to pay debts can be only up to A) 4, 000. B) 5, 000. C) 1, 000. D) 2, 000. Show Answer Correct Answer: C) 1, 000. 13. Which of the following is a disadvantage of corporations: A) High taxes. B) Unlimited life. C) Unlimited liability. D) Financial power. Show Answer Correct Answer: A) High taxes. 14. ..... is considered as the birth certificate of company A) Certificate of Incorporation. B) Memorandum. C) Articles. D) Prospectus. Show Answer Correct Answer: A) Certificate of Incorporation. 15. The principle of one man one vote in government is this form of business A) Sole proprietorship. B) Partnership. C) Joint Hindu family. D) Cooperative societies. Show Answer Correct Answer: D) Cooperative societies. 16. In a cooperative society, which of the following principle is followed? A) One share one vote. B) One man one vote. C) No vote. D) Multiple votes. Show Answer Correct Answer: B) One man one vote. 17. Companies can be ..... or ..... A) Private, Public limited. B) Private, Public unlimited. C) Co-operative, Partnership. D) Individual, General. Show Answer Correct Answer: A) Private, Public limited. 18. Karta is responsible for which form of business organisation? A) Soleproprietor. B) Company. C) HUF. D) Partnership. Show Answer Correct Answer: C) HUF. 19. Why do companies decide to be multinational A) Entering a new country gives the business a new market. B) To reduce production costs. C) Gain trade barriers. D) To completely avoid tax liability. Show Answer Correct Answer: A) Entering a new country gives the business a new market. 20. What is the maximum number of partners allowed in a partnership firm? A) 50. B) 100. C) 20. D) 10. Show Answer Correct Answer: A) 50. 21. Beauty parlours comes under which form of business organization? A) Partnership. B) Sole Proprietorship. C) Company. D) None of the above. Show Answer Correct Answer: B) Sole Proprietorship. 22. What can cause delays in completing crucial projects in Public Private Partnerships (PPPs)? A) Efficient collaboration. B) Government oversight. C) Conflicts between government and private firms. D) Fast-track approvals. Show Answer Correct Answer: C) Conflicts between government and private firms. 23. All of the following are advantages of joint ventures except A) The cost of a new project can be split between companies. B) Manufacturing costs will be divided between the firms. C) Joint venture companues can enjoy economies of scale. D) Management of a joint venture might cause disagreement. Show Answer Correct Answer: D) Management of a joint venture might cause disagreement. 24. Assertion (A):At BEP, neither profit nor loss Reason (R ):BEP is the level of sales at which total revenues equal to total cost. A) A is correct, but R is incorrect. B) Both A and R are incorrect. C) A is incorrect, but R is correct. D) Both A and R are correct, and R is the correct explanation of A. Show Answer Correct Answer: D) Both A and R are correct, and R is the correct explanation of A. 25. Maximum members allowed in case of private company is ..... A) 20. B) 30. C) 10. D) 50. Show Answer Correct Answer: D) 50. ← 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