This quiz works best with JavaScript enabled. Home > Class 11 > Class 11 Business Studies Chapter 2 Forms Of Business Organisation – Quiz 9 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 9 (25 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which one has more financial risk? A) A partnership. B) A sole trader. C) All the above. D) None of the above. Show Answer Correct Answer: B) A sole trader. 2. What are members of a joint stock company known as? A) Stakeholders. B) Partners. C) Shareholders. D) Investors. Show Answer Correct Answer: C) Shareholders. 3. A unit of investment in a company. These make up the capital of the company. They can have a nominal or face value of $ 0.50, $ 1, $ 10 etc. A) Share. B) Dividend. C) Debenture. D) None of the above. Show Answer Correct Answer: A) Share. 4. Hema running a business in sole-proprietorship. Due to loss in business she decided to wind up her business. On the day of winding up the assets are worth Rs. 5 lakhs and liabilities (all creditors) are worth Rs. 10 lakhs. Hema has her personal property of Rs. 600000. How much do you think the creditors will get at the time of winding up of business? A) Rs. 5 lakhs. B) Rs. 7 lakhs. C) Rs. 10 lakhs. D) None of the above. Show Answer Correct Answer: C) Rs. 10 lakhs. 5. What is a major advantage of a business that is a partnership rather than a sole proprietorship? A) The responsibility of the business is shared equally. B) The partners are not responsible for business debts. C) The business is easy to set up. D) The business is easy to sell. Show Answer Correct Answer: A) The responsibility of the business is shared equally. 6. Law firms, medical practices, and auto body repair shops are examples of what type of ownership? A) Sole proprietorship. B) Franchise. C) Partnership. D) Corporation. Show Answer Correct Answer: C) Partnership. 7. In which of the following forms there exists unlimited liability? A) Partnership. B) Private Company. C) Government Company. D) Cooperative Society. Show Answer Correct Answer: A) Partnership. 8. WHICH OF THE FOLLOWING IS ONT THE FEATURE OF SOLE PROPRIETORSHIP? A) Limited liability. B) Easy formation. C) No separate entity. D) Lack of business continuity. Show Answer Correct Answer: A) Limited liability. 9. Can Partnership be carried on without having agreement in writing? A) Yes. B) NO. C) All the above. D) None of the above. Show Answer Correct Answer: A) Yes. 10. Which of the following is a correct definition of 'span of control'? A) The number of employees subordinate in the hierarchy to a given manager. B) The number of levels in the hierarchy 'below' a given manager's. C) The number of employees directly responsible to a manager. D) None of the above. Show Answer Correct Answer: C) The number of employees directly responsible to a manager. 11. When a company takes out a loan their owners are responsible for paying the loan. A) True. B) No. C) All the above. D) None of the above. Show Answer Correct Answer: B) No. 12. A ..... partner is an owner who has unlimited liability and is active in managing the firm A) Senior partner. B) (b) Active partner. C) (c) silent partner. D) (d) limited partner. Show Answer Correct Answer: B) (b) Active partner. 13. Marketing cooperative society is established to help small producers in selling their products. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 14. Which one is CORRECT inrespect of number of members in public company A) Minimum 7, Maximum 200. B) Minimum 2, Maximum 200. C) Minimum 7, Maximum no limit. D) Minimum 2, Maximum no limit. Show Answer Correct Answer: C) Minimum 7, Maximum no limit. 15. Provision of residential accommodation tot he members at reasonable rates is the objective of: A) Producers cooperative society. B) Consumers cooperative society. C) Credit cooperative society. D) Housing cooperative society. Show Answer Correct Answer: D) Housing cooperative society. 16. How many signatories are required for memorandum of association in case of public company? A) 7. B) 5. C) 2. D) 3. Show Answer Correct Answer: A) 7. 17. Business Model offer products and services directly to individual customers A) B2C. B) B2B. C) C2B. D) C2C. Show Answer Correct Answer: A) B2C. 18. The structure in which there is seperation of ownership and management is called A) Sole proprietorship. B) Partnership. C) Company. D) All business organisations. Show Answer Correct Answer: C) Company. 19. What is one of the primary objectives of business organization? A) Environmental conservation. B) Charitable donations. C) Maximizing shareholder wealth. D) Promoting political agendas. Show Answer Correct Answer: C) Maximizing shareholder wealth. 20. What is a municipal enterprise? A) A business owned by private individuals. B) A business run by local government authorities. C) A type of public limited company. D) A franchise operation. Show Answer Correct Answer: B) A business run by local government authorities. 21. Which of the following is a feature of a Joint Stock Company? A) Unlimited liability. B) Transferability of shares. C) Single ownership. D) No legal entity. Show Answer Correct Answer: B) Transferability of shares. 22. An incorporated business formally distributes profit to shareholders using: A) Dividends. B) Bonuses. C) Payroll. D) Shareholder transfer. Show Answer Correct Answer: A) Dividends. 23. In LLP What is the maximum no of partners? A) 10. B) 50. C) 100. D) Unlimited. Show Answer Correct Answer: D) Unlimited. 24. Which is TRUE about Partner by Estoppel A) The person gives an impression to others that he is a partnrer in a firm. B) Liable to the third parties and has unlimited liablity. C) Does not contribute capital. D) All of the above. Show Answer Correct Answer: D) All of the above. 25. Preference shares do not have the right of getting dividend. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. ← 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 10Class 11 Business Studies Chapter 2 Forms Of Business Organisation Quiz 11 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books