CBSE Class 11 Business Studies Forms Of Business Organizations MCQs Set 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: A prospectus is issued by
a) A public company seeking investment, from public
b) A private company
c) A public company
d) A public enterprise
Answer: a

Question: Find out the liability of Kavita in a company. Who is a shareholder, holding 3,000 shares of Rs. 10 each. She has already paid Rs. 6 per share.
a) Rs 10,000
b) Rs. 1,20,000
c) Rs 18,000
d) Rs. 12000
Answer: d

Question:Capital clause specifies—
a) authorised capital
b) subscribed capital
c) paid up capital
d) Issued capital
Answer: a

Question: Which form of organisation is suitable if direct control over operations & absolute decision making power is required in business?
a) Joint Stock Co.
b) cooperative society
c) Sole proprietorship
d) HUF
Answer: c

Question: A form of business organization with two or more owners who share the risks and the profits
a) proprietorship
b) corporation
c) wholesale
d) partnership
Answer: d

Question: The most effective form of business organization for raising capital is the:
a) joint venture.
b) partnership.
c) corporation.
d) proprietorship.
Answer: c

Question: Innovation means:
a) Production of new commodities
b) Customer satisfaction
c) Production according to consumer needs
d) To maximise sales
Answer: a

Question: The profit distributed among the shareholders is known as:
a) Incentives
b) bonus
c) Interest
d) Dividend
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: Minimum paid up capital to start a Private Ltd company is
a) one lakh
b) Two lakhs
c) Five lakhs
d) Ten lakhs
Answer: a

Question: The partnership deed generally includes the following
a) Name of firm
b) Nature of business
c) Location of business
d) All of the options
Answer: d

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

Question: Provision of residential accommodation to the members at reasonable rates is the objective of:
a) Housing Cooperative
b) Producers Cooperative
c) Sleeping Partner
d) Credit Cooperative
Answer: a

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: _______ company needs to have only two directors.
a) Public Company
b) Sole Proprietorship
c) Private Company
d) None of the options
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: Floral Shops, Bookstores, Farms are examples of what type business
a) Sole Proprietorship
b) Corporation
c) Franchise
d) Multinational Corporation
Answer: a

Question: Which is not a limitation of Sole proprietorship.
a) Limited resources
c) Easy formation
b) Limited life of business
d) limited managerial ability
Answer: b

Question: Which document is subsidiary of the MOA
a) prospectus
b) articles of association
c) consent of directors
d) table A
Answer: b

Question: Nike, IBM, and Google are examples of
a) partnership
b) franchise
c) corporation
d) partnership
Answer: c

Question: At least 10 adults, no maximum limit in case of ________
a) Joint Hindu Family
b) Cooperative Society
c) Company
d) Partnership
Answer: b

Question: In which form of business organization, minor can also be members –
a) Joint Stock Company
b) Cooperative Society
c) HUF business
d) Sole Proprietorship
Answer: a 

Fill in the Blanks: 

Question: A person running a retail shop, beauty parlous, saloons in a locality is known as __________ form of business.
Answer: Sole proprietor 

Question: In a cooperative society, the power to take decisions lies in the hands of an elected __________ committee.
Answer: managing

Question:The liability of all member, except the karta in Hindu Undivided family is __________ .
Answer: limited 

Question: Articles of association are the rules regarding __________ management of a co.
Answer: internal

Question: Registration of a partnership business is __________ .
Answer: optional

True or False: 

Question: There is lack of business continuity in sole proprietorship business organisation.
Answer: True

Question: Registration of a cooperative society is not compulsory.
Answer: False

Question: The maximum members of any Private Ltd. Can be two hundred.
Answer: True

Question: Issued capital of A tech ltd.was Rs. 5o cr, co.gets the subscribed capital of Rs.44 cr. Now co. can allot share to shareholders.
Answer: False

Question: APrivate company should appoint minimum three Board of Directors.
Answer: False 

Match the following:

Question: Match the following forms of business organizations with their suitable examples
a) Sole Proprietorship           1. AMUL
b) Cooperative Society         2. Airtel
c) Private Company              3. Gupta General Store
d) Public Company               4. BHEL
Answer: a-3, b-1, c- 2 , d-4

Question: Match the following acts with their years
a) Partnership Act                             1. 2013
b) Cooperative Society Act               2. 1956
c) Companies Act                             3. 1932
d) Joint Hindu Succession Act          4. 1912
                                                         5. 1986
Answer: a-3, b-4, c- 1 , d-2 

Pictorial questions:-

Question:

Name the type of partnership.
Answer: Particular Partnership

Question:

Describe the liability of a nominal partner.
Answer: Nominal Partner having unlimited liability

Question:

Name the feature of partnership business.
Answer: Earning profit 

One word Answer: type Questions : 

Question: What is ClN?
Answer: CIN stands for ‘Corporate Identity Number’ allotted by the Registrar of Companies on incorporation of a company.

Question: What is the main cause of decline in Joint Hindu Family Business.
Answer: Diminishing number of Joint Hindu Families.

Question: Mention the minimum number of persons required to form a cooperative society.
Answer: Ten adult persons.

Question: It is not formed by an agreement or by a contract. But it comes into existence by the operation of Hindu Law. Name the type of business organisation referred to here.
Answer: Hindu undivided family business.

Question: Name the form of business organisation found only in India.
Answer: Hindu Undivided Family Business.

Question: Name the form of business organisation where there is separation of ownership and management.
Answer: Company form of business.

Question: Name the partner who permits the partnership firm to use his/her name for the benefit of the firm but does not contribute any capital or take part in the management of the business.
Answer: Nominal partner.

Question: Name the type of partnership which is setup to complete a particular project for a specified time period.
Answer: Particular partnership.

Question: Who is a secret partner?
Answer: Secret partner is a partner whose membership in a partnership is maintained secret from the public. 

Question: Mention the names of the systems that regulate the membership in Joint Hindu Family. 
Answer: Dayabhaga law and Mitakshara law

Question: Who regulates a Joint Hindu Family business?
Answer: Karta

Question: What is an unlimited liability?
Answer: Unlimited liability involves general partners and sole proprietors who are fairly effective for debt and liabilities accumulated by the business. This liability is not capped and can be paid off within the seizure of owners’ personal assets, making it distinct from limited liability ventures.

Question: Mention 2 necessary conditions that form a Joint Hindu Family business.
Answer: - At least 2 members in a family
- Ancestral property to be inherited by him or her

Question: What is HUF?
Answer: Hindu Undivided Family (HUF) is not specified under the Income Tax Act but is incorporated under the Hindu Law. HUF comprises of all the individuals who are lineally settled from a common ancestor and also includes of unmarried daughters. HUF is not established by a but by the status of a family i.e., it is generated automatically in any Hindu Family.