This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 2 Forms Of Business Organisation – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 8 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A company cannot come into existence without: A) Electing Directors. B) Getting certificate of incorporation. C) Issuing a prospectus. D) All of these. Show Answer Correct Answer: B) Getting certificate of incorporation. 2. A nominal partner is the one who A) Contribute capital. B) Shares profit and losses. C) None of the above. D) None of the above. Show Answer Correct Answer: C) None of the above. 3. One of the claimed advantages of a sole trader business is that: A) Owners have limited liability. B) Shares can be sold to raise capital. C) Decisions and responsibilities can be shared. D) The owner has independence. Show Answer Correct Answer: D) The owner has independence. 4. The ..... department is in charge for paying local and national taxes. A) Sales. B) Finance. C) All the above. D) None of the above. Show Answer Correct Answer: B) Finance. 5. When comparing the four main types of business organizations, which protects owners the MOST from personal financial liability due to being sued by a customer? A) Sole Proprietorship. B) Partnership. C) Franchise. D) Limited Company. Show Answer Correct Answer: D) Limited Company. 6. From the following which is an unincorporated business? A) Sole Trader. B) Private Limited Company. C) Public Limited Company. D) None of the above. Show Answer Correct Answer: A) Sole Trader. 7. Who are called the Real owner of the company? A) Employees. B) Debenture holders. C) Shareholders. D) Creditors. Show Answer Correct Answer: C) Shareholders. 8. One of the advantages of a partnership form of business organization 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. 9. Sole traders is an unincorporated business. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 10. Certificate of commencement of business is required for operating a A) Public company. B) Private company. C) Both of the above. D) None of the above. Show Answer Correct Answer: A) Public company. 11. What socio-economic objective do Public Sector Undertakings (PSUs) primarily focus on? A) Maximizing profits. B) Providing services at reasonable prices. C) Exporting goods. D) Avoiding taxes. Show Answer Correct Answer: B) Providing services at reasonable prices. 12. Maximum number of directors in case of private company A) 2. B) 15. C) 200. D) None of the above. Show Answer Correct Answer: B) 15. 13. A ..... has its objectives for the promotion of economic interest of its members in accordance with cooperative principles. A) Sole proprietorship. B) Joint hindu family business. C) Partnership. D) Cooperative society. Show Answer Correct Answer: D) Cooperative society. 14. Nike, Google and Apple are examples of ..... A) Sole Proprietorships. B) Partnerships. C) Public Limited Companies. D) Franchises. Show Answer Correct Answer: C) Public Limited Companies. 15. Limited companies pay which tax? A) Corporation tax. B) Enterprise tax. C) PAYE. D) Conglomerate tax. Show Answer Correct Answer: A) Corporation tax. 16. Usually, partnerships have between ..... A) 2 and 20 partners. B) 2 and 4 partners. C) More than 50 partners. D) None of the above. Show Answer Correct Answer: A) 2 and 20 partners. 17. Which of the following statements is/are true?(i) An informal organisation exists within every formal organisation(ii) The objectives of the informal organisation are broadly the same as those of the formal organisation(iii) A strong, close-knit informal organisation is desirable within the formal organisation A) Statement (i) only. B) Statements (i) and (iii) only. C) Statements (ii) and (iii) only. D) Statement (iii) only. Show Answer Correct Answer: A) Statement (i) only. 18. Assertion (A):A partnership firm does not have separate legal entity.Reason(R):The partners of a firm have unlimited liability. A) Both A and R are true and R is the correct explanation of A. B) Both A and R are true but R is not the correct explanation of A. C) A is true but R is false. D) A is false but R is true. Show Answer Correct Answer: B) Both A and R are true but R is not the correct explanation of A. 19. What's the capital of Poland? A) Cracow. B) Warsaw. C) Wroclaw. D) None of the above. Show Answer Correct Answer: B) Warsaw. 20. What is the liability of a minor member in Joint Hindu Family Business? A) Unlimited. B) Limited. C) No liability. D) Partially limited. Show Answer Correct Answer: B) Limited. 21. What is the advantage to a business of selling a franchise license to franchisee? A) The business can expand more quickly. B) The franchisor owns all of the shops. C) The business buying the franchise is likely to be successful. D) 100% profit goes to the franchisor. Show Answer Correct Answer: A) The business can expand more quickly. 22. Name the type of partner who is not really a partner but is liable to third parties for the repayment of firm's debt. A) PARTNER BY ESTOPPEL. B) PARTNER BY HOLDING OUT. C) SLEEPING/DORMANT PARTNER. D) OUTSIDE PARTNER. Show Answer Correct Answer: A) PARTNER BY ESTOPPEL. 23. Name the cooperative society that provides loan to its members at easy terms and reasonable interest A) Marketing Cooperative societies. B) Consumers Cooperative Societies. C) Credit Cooperative societies. D) Credit Cooperative societies. Show Answer Correct Answer: C) Credit Cooperative societies. 24. What is the nature of liability of the coparceners in a joint hindu family business? A) Joint and limited. B) Limited to their share of co-parcenery property. C) Unlimited. D) Joint and unlimited. Show Answer Correct Answer: B) Limited to their share of co-parcenery property. 25. What is considered while selecting the place of business A) Region. B) Locality. C) Capital. D) Both region and locality. Show Answer Correct Answer: D) Both region and locality. ← 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 9Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 10Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books