CBSE Class 11 Business Studies Forms of Business Organisation MCQs Set 01

Question. _______ company needs to have only two directors.
(a) Public Company
(b) Sole Proprietorship
(c) Private Company
(d) None of the options

Answer: C

Question. The maximum number of partners allowed in the banking business are
(a) Ten
(b) No limit
(c) Twenty
(d) Two

Answer: A

Question. The form of business organization that has the largest sales volume is the:
(a) Partnership
(b) Corporation
(c) Cooperative
(d) Multinational

Answer: B

Question. The simplest form of business ownership is a:
(a) proprietorship.
(b) partnership.
(c) corporation.
(d) cooperative.

Answer: A

Question. The structure in which there is separation of ownership and management as per law is called
(a) Company
(b) All business organisations
(c) Partnership
(d) Sole proprietorship

Answer: A

Question. The karta in Joint Hindu family business has
(a) Limited liability
(b) Unlimited liability
(c) No liability for debts
(d) Joint liability

Answer: B

Question. Transfer of interest exists in the case of
(a) Profession
(b) employment
(c) business
(d) none of the options

Answer: C

Question. A company named Tech pvt ltd wants to issue its shares to the general public. Can the company do so:
(a) Yes
(b) Yes, after taking permission from the government
(c) Yes but there will be a few restrictions
(d) No

Answer: D

Question. A company being an artificial person can:
(a) Enter into contracts
(b) Can sue the third party or its members
(c) Can be sued by its members or any other third party
(d) all of the options

Answer: D

Question. Minimum numbers of Board of Directors in any Private company can be
(a) 3
(b) 2
(c) 4
(d) 5

Answer: B

Question. Which one of the following is the CORRECT sequence of stages in the formation of a company?
(a) Promotion, incorporation, capital subscription, the commencement of business
(b) Incorporation, capital subscription, promotion, the commencement of business
(c) Promotion, the commencement of business, incorporation, capital subscription
(d) Promotion, Incorporation, Certificate of commencement, capital subscription

Answer: A

Question. Which of the following forms of business enterprises suffer from a lack of public confidence because they are not required to publish their accounts legally?
(a) Partnership
(b) Cooperative Society
(c) Company
(d) None of the options

Answer: A

Question. A partnership firm can be registered under:
(a) The Partnership Act, 1932
(b) The Indian Contract Act, 1872
(c) The Partnership Act, 1994
(d) The Partnership Act,1922

Answer: A

Question. Sense of accomplishment is present in which of business organisation:
(a) Partnership
(b) Company
(c) Joint Hindu Family business
(d) Sole proprietorship

Answer: D

Question. On the basis of duration partnership are classified into:
(a) Partnership at will and particular partnership
(b) General partnership and limited partnership
(c) Long partnership and short partnership
(d) none of the options

Answer: A

Question. Which of the following is probably the most important reason for incorporating?
(a) limited liability of shareholders.
(b) more money for investment.
(c) increased flexibility.
(d) shared management.

Answer: A

Question. It is a form of business organization which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks. Identify the concept.
(a) Sole Proprietorship
(b) Cooperative Society
(c) Joint Hindu family business
(d) Partnership

Answer: A

Question. Which of the following business organisation has service motive?
(a) Sole Proprietorship
(b) Joint Hindu Family
(c) Cooperative Society
(d) Company

Answer: C

Question. A partner whose association with the firm is unknown to the general public is called
(a) Active partner
(b) Sleeping partner
(c) Nominal partner
(d) Secret partner

Answer: D

Question. __________ company does not invite the public to subscribe to its share capital.
(a) Both Private and Public Company
(b) Public Company
(c) Private Company
(d) None of the options

Answer: C

Question. The life of sole proprietorship business is ___________
(a) Very short life
(b) Stable
(c) Long life
(d) Unstable

Answer: D

Question. The capital of a company is divided into number of parts each one of which are called:
(a) Dividend
(b) Profit
(c) Interest
(d) Share

Answer: D

Question. Which one of the following may not be a factor behind starting a business?
(a) Routine workload
(b) size of the firm
(c) finance
(d) location of the business

Answer: A

Question. A partner who is not actually involved in the partnership but lends his name for public relations purposes is a:
(a) silent partner.
(b) general partner.
(c) nominal partner.
(d) dominant partner.

Answer: C

Question. In case of running a Joint Hindu Family business there must be at least _____ members in a family.
(a) 6
(b) 4
(c) 2
(d) 8

Answer: C

Question. The form partnership which was restricted in India is.
(a) Particular Partnership
(b) General Partnership
(c) Partnership at will
(d) Limited Partnership

Answer: D

Question. Which of the following cooperative society is established to help small producers in selling their products?
(a) Producer cooperative society
(b) Marketing cooperative society
(c) Credit cooperative society
(d) Consumers cooperative society

Answer: A

Question. Profits do not have to be shared. This statement refers to :
(a) Partnership
(b) Joint Hindu Family business
(c) Sole proprietorship
(d) Company

Answer: C

Question. A private company is one which:
(a) Limits the number of members
(b) Restricts the transferability of shares
(c) Prohibits the public to subscribe to its securities
(d) all of the options

Answer: D

Question. The Head of the Joint Hindu Family business is called :
(a) Proprietor
(b) Director
(c) Karta
(d) Manager

Answer: C

Question. All members who have equal ownership rights over the property of an ancestor are known as __________:
(a) Family members
(b) Coparceners
(c) Business Partners
(d) Heirs of the Business

Answer: B

Question. Maximum number of members in Private company are
(a) 50
(b) 100
(c) 150
(d) 200

Answer: D

Question. Every partner is both an agent and a principal. Identify the characteristic of the partnership being referred here.
(a) Mutual Agency
(b) Risk Bearing
(c) Membership
(d) Formation

Answer: A

Question. The structure in which there is separation of ownership and management is called
(a) Sole proprietorship
(b) Partnership
(c) Company
(d) All business organisations

Answer: C

Question. Which of the following is an advantage of a sole proprietorship ?
(a) ease of starting a business.
(b) being your own boss.
(c) pride of ownership.
(d) all of the options

Answer: D

Question. It is a form of business organization which is owned, managed, and controlled by an individual who is the recipient of all profits and bearer of all risks. Identify the concept.
(a) Sole Proprietorship
(b) Cooperative Society
(c) Joint Hindu family business
(d) Partnership

Answer: A

Question. The structure in which there is separation of ownership and management is called
(a) Sole proprietorship
(b) Partnership
(c) Company
(d) All business organizations

Answer: C

Question. In a cooperative society the principle followed is
(a) One share one vote
(b) One man one vote
(c) No vote
(d) Multiple votes

Answer: B

Question. The maximum number of partners allowed in the banking business are
(a) Twenty
(b) Ten
(c) No limit
(d) Two

Answer: B

Question. The board of directors of a joint stock company is elected by
(a) General public
(b) Government bodies
(c) Shareholders
(d) Employees

Answer: C

Question. Which of the following forms of business organisation has limited liability to his members:
(a) Partnership
(b) Company
(c) Sole proprietorship
(d) Joint Hindu Family business

Answer: B

Question. __________ company does not invite public to subscribe to its share capital
(a) Both Private and Public Company
(b) Public Company
(c) Private Company
(d) None of the options

Answer: C

Question. Which of the following is an example of a non profit organization?
(a) Royal Bank.
(b) YMCA.
(c) BCE.
(d) Air Canada.

Answer: B

Question. In a cooperative society, the power to take decisions lies in the hands of.
(a) Elected Managing Committee
(b) Karta
(c) Board of directors
(d) Members

Answer: A