This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 2 Forms Of Business Organisation – Quiz 28 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 28 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The major policy and financial decision makers of a corporation are determined by the ..... A) CEO/GM/President. B) Chairman of the Board. C) Shareholders. D) Board of Directors. Show Answer Correct Answer: D) Board of Directors. 2. Disadvantages include limited life and the potential for conflict between partners A) Sole Propriotorship. B) Partnership. C) Corporation. D) None of the above. Show Answer Correct Answer: B) Partnership. 3. What is a disadvantage of a Company? A) More capital to run the business. B) Going concern. C) Limited liability. D) Many procedures to set up. Show Answer Correct Answer: D) Many procedures to set up. 4. Partnership deed defines oral agreement among partners A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 5. Identify the merit of Sole Proprietorship-There is a personal satisfaction involved in working for oneself. A) Sense of achievement. B) Sense of confidence. C) Sense of accomplishment. D) Sense of satisafaction. Show Answer Correct Answer: C) Sense of accomplishment. 6. What are the disadvantages of a sole proprietorship? A) Unlimited personal liability, limited access to capital, limited growth potential, and lack of continuity. B) Limited liability, easy dissolution, limited decision-making power. C) Limited liability, high start-up costs, limited control over decision-making. D) Limited liability, limited access to resources, limited tax benefits. Show Answer Correct Answer: A) Unlimited personal liability, limited access to capital, limited growth potential, and lack of continuity. 7. What is the liability status of a Sole Proprietorship? A) Shared liability. B) No liability. C) Unlimited liability. D) Limited liability. Show Answer Correct Answer: C) Unlimited liability. 8. Which type of business organisation is easy to form and there is no separate low for A) Sole Proprietorship. B) Cooperative society. C) Joint Hindu Family. D) Partnership. Show Answer Correct Answer: A) Sole Proprietorship. 9. Oligarchic management is related to which form of business organisation? A) Cooperative society. B) Company. C) Hindu undivided family business. D) Partnership. Show Answer Correct Answer: B) Company. 10. Chandramukhi purchased 250 shares of Great Company Limited, the face value of shares being ₹ 100. The company has called ₹ 80 per share till date, and all such amounts as called by company, have been paid by Chandramukhi. What is the liability of Chandramukhi now? A) Unlimited Liability. B) Rs. 5000. C) Rs. 25, 000. D) Rs. 20, 000. Show Answer Correct Answer: B) Rs. 5000. 11. Maximum number of partners in Partnership business as per Companies Act A) 10. B) 20. C) 50. D) 100. Show Answer Correct Answer: C) 50. 12. Kerala co-operative societies Act was passed in the year ..... A) 1960. B) 1956. C) 1969. D) 1979. Show Answer Correct Answer: C) 1969. 13. Capital of a company is divided in to small units called ..... A) Debentures. B) Drafts. C) Coupons. D) Shares. Show Answer Correct Answer: D) Shares. 14. Who issues a certificate of registration to a firm A) State government. B) Central government. C) Registrar of firms. D) None of the above. Show Answer Correct Answer: C) Registrar of firms. 15. Application for approval of name of a company is to be made to ..... A) SEBI. B) Registrar of Companies. C) Government of India. D) Government of the State in which Company is to be registered. Show Answer Correct Answer: B) Registrar of Companies. 16. How is a general partnership organized? A) Every partner shares equally in both responsibility and liability. B) The doctors, lawyers, or accountants who form a general partnership hire others to run the partnership. C) No partner is responsible for the debts of the partnership beyond his or her investment. D) Only one partner is responsible for the debts of the partnership. Show Answer Correct Answer: A) Every partner shares equally in both responsibility and liability. 17. Liability means A) Continuity of business. B) Business and business man are considered separate. C) Obligation to pay debt. D) One man control. Show Answer Correct Answer: C) Obligation to pay debt. 18. What is the first stage of company formation A) Incorporation. B) Promotion. C) Subscription of capital. D) Sole proprietorship. Show Answer Correct Answer: B) Promotion. 19. Business is solely concerned with the production of goods. A) A. True. B) B. False. C) All the above. D) None of the above. Show Answer Correct Answer: B) B. False. 20. What is the stage that immediately follows ideation in an entrepreneurial journey? A) Prototyping. B) Testing. C) Validation. D) Commercialisation. Show Answer Correct Answer: A) Prototyping. 21. General partner has A) Limited liability. B) Unlimited liability. C) None of the above. D) All of the above. Show Answer Correct Answer: B) Unlimited liability. 22. How many types of Cooperative Societies are there: A) 2. B) 6. C) 4. D) 8. Show Answer Correct Answer: B) 6. 23. In Private Ltd. company can the allotment of shares be done without receiving minimum subscription? A) Yes. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 24. The management of this form of business organisation is in the hands of boards of directors A) Cooperative societies. B) Partnership. C) Joint Hindu family. D) Joint stock company. Show Answer Correct Answer: D) Joint stock company. 25. The main reason why the owners of many private limited companies convert their businesses into public limited companies is because: A) They do not want to remain in the private sector. B) They want to gain the benefits of limited liability. C) They want to keep the annual accounts secret. D) They want to raise additional capital to expand the business. Show Answer Correct Answer: D) They want to raise additional capital to expand the business. ← 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