CBSE Class 11 Business Studies Forms Of Business Organizations MCQs Set 02

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

Question: Which of the following business enterprises does not have a separate legal entity?
a) Sole Proprietorship
b) Partnership
c) Company
d) Cooperative Society
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: What is the advantage of corporations?
a) minimal government regulation
b) limited liability
c) short life span
d) has one owner
Answer: b

Question: Prospectus is issued by
a) Public Enterprise
b) Public Company
c) Private Company
d) Public Sector
Answer: b

Question: Which of the following contract is signed by the promoters with the third party on behalf of the proposed company?
a) Preliminary contracts
b) Provisional contract
c) Prospectus
d) Memorandum of association
Answer: a

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

Question: What do you understand by the term unlimited liability?
a) The personal assets of the owner can be sold when the assets of the business are not enough to
b) The personal assets of the owner cannot be sold at all
c) The personal assets of the owner can be sold, according to the wish of the creditors
d) The personal assets of the owner can be sold, only to a limited extent
Answer: a

Question: A company cannot come into existence without
a) Issuing prospectus
b) Electing directors
c) Certificate of incorporation
d) All of the options
Answer: c

Question: Hindu Succession Act was passed in _____________
a) 1960
b) 1956
c) 1952
d) 1932
Answer: b

Question: Which type of business organisation is the most popular and suitable for Small business.
a) Joint Hindu Family
c) Partnership
b) Sole Proprietorship
d) Cooperative society
Answer: b

Question: A prospectus is issued by
a) Public company
b) Private company
c) Statutory Corporation
d) Departmental undertaking
Answer: a

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: Which of the following statement is NOT true about a minor partner?
a) He has to bear losses also
b) He can inspect books of accounts
c) He has an option to continue with a firm even after attaining majority
d) He shares only profits
Answer: a

Question: What type of business consists of two or more people?
a) Sole Proprietorship
b) Partnership
c) Corporation
d) Franchise
Answer: b

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 life of sole proprietorship business is ___________
a) Very short life
b) Stable
c) Long life
d) Unstable
Answer: d

Question: Which of the following is not a feature of a Joint Stock Company?
a) Artificial person
b) Separate legal entity
c) Formation
d) Lack of business continuity
Answer: d

Fill in the Blanks:

Question: In a general partnership liability of partners is __________ .
Answer: unlimited

Question:Minimum number of members in a partnership business are __________ persons.
Answer:  2

Question: The most important document used in partnership business is __________ .
Answer: Partnership Deed

Question: Sole proprietorship is a form of business organisation which is outlined, managed and controlled by an__________ .
Answer: Individual

Question: The formation of a company is a time consuming, ___________ and a complicated process.
Answer: Expensive

True or False:

Question: A sleeping partner is having limited liability.
Answer: False

Question: A public co. can commence the business after incorporation.
Answer: False

Question: A Private company can raised funds after issuing prospectus.
Answer: False 

Question: Marketing cooperative society is established to help small producers in selling their products.
Answer: True

Question: The common seal is engraved equivalent of an official signature of a company.
Answer: True

Match the following:

Question: Match the following cooperative societies with their objective
a) Farmer‟s Cooperative Society              1. To eliminate middlemen
b) Marketing Cooperative Society             2. To protect the interest of small producers
c) Consumer‟s Cooperative Society         3. To help small producers in selling their products
d) Credit Cooperative Society                  4. To protect the interest of farmers
                                                                 5.To provide loan facility on reasonable terms
Answer: a-4, b-3, c- 1 , d-5

Question: Match the following forms of business organizations with the minimum number of members required
a) Partnership                      1. Five
b) Cooperative Society        2. Seven
c) Private Company             3. Two
d) Public Company              4. Ten
                                            5.Fifteen
Answer: a -3, b -4, c- 3 , d -2

Pictorial questions:-

Question:

Name the type of Business.
Answer: Partnership

Question:

Name the type of Partner
Answer: Sleeping Partner

One word Answer: type Questions :

Question: Name the form of business organisation which is owned, managed, financed and controlled by a single person who enjoy all the profits and bears all the risks.
Answer: Sole proprietorship.

Question: Name the form of business organisation wherein members are agents and principals of each other.
Answer: Partnership.

Question: Name the form of business organisation wherein management tends to be oligarchic.
Answer: Joint stock company.

Question: What is ‘the minimum number of members required to start a partnership firm?
Answer: Two members.

Question: State the law which governs the company form of organisation in India.
Answer: The Companies Act, 2013.

Question: Name the partner whose association with the firm is not known to the general public.
Answer: Secret partner.

Question: Name the process by which the shares of a company are allowed to be traded on a stock exchange.
Answer: Listing of shares.

Question: Is it compulsory for a cooperative society to get themselves registered?
Answer: Yes, registration of cooperative societies is compulsory under the Cooperative Societies Act, 1912.

Question: How can one identify from the name of the company that whether it is a public company or a private company?
Answer: The name of a public company always ends with the word ‘Ltd.’. For example, a) Wipro Ltd. b) Tata Iron and Steel Company Ltd. The name of a private company always ends with the word ‘Pvt. Ltd.’ For example, a) Hyundai Motors India Pvt. Ltd. b) Nirma Chemicals Pvt. Ltd.