CBSE Class 11 Business Studies Forms of Business Organisation Worksheet Set 03

FORMS OF BUSINESS ORGANISATIONS

I. MULTIPLE CHOICE QUESTIONS (Choose the Correct Alternative)

1. The type of organization where there is separation of ownership and management is called---

(a) Sole proprietorship
(b) Company
(c) Partnership
(d) None of these

2. The ‘Karta’ in Joint Hindu Family business has

(a) Joint liability with coparceners
(b) Unlimited liability
(c) Limited liability
(d) No liability

3. The members of the Board of Directors of a public company are elected by:

(a) General public
(b) Financial institutions
(c) Shareholders
(d) Workers

4. Profits do not have to be shared in the case of:

(a) Partnership
(b) Cooperative society
(c) Sole proprietorship
(d) Company

5. The capital of a company is divided into parts each of which is called

(a) Dividend
(b) Profit
(c) Interest
(d) Share

6. Providing residential accommodation to the members is the objective of

(a) Credit cooperative
(b) Consumers cooperative
(c) Housing cooperative
(d) Farmers’ cooperative

7. A partner whose association with the firm is not known to the general public

(a) Sleeping partner
(b) Active partner
(c) Nominal partner
(d) Secret partner

8. This is a document inviting the public to subscribe the shares of a company

(a) Memorandum of Association
(b) Prospectus
(c) Articles of Association
(d) Partnership deed

9. The document which lays down the objects and powers of the company as well as the scope of its operations is known as

(a) Memorandum of Association
(b) Prospectus
(c) Articles of Association
(d) Partnership deed

10. As per SEBI guidelines, the minimum subscription of allotted shares should min --------------% of the capital issued

(a) 50%
(b) 90%
(c) 75%
(d) 91%

11. The document which contains the rules and regulations of a company relating to its management of its internal affairs

(a) Memorandum of Association
(b) Prospectus
(c) Articles of Association
(d) Partnership deed

12. This is the first stage in the formation of a company

(a) Promotion
(b) Capital subscription
(c) Incorporation
(d) Commencement

13. The person who undertakes to form a company with reference to a given project and takes necessary steps to accomplish it is known as

(a) Partner
(b) Coparcener
(c) Proprietor
(d) Promoter

14. Under this stage in the formation of a company an application is made to the registrar for the registration of the company

(a) Promotion
(b) Capital subscription
(c) Incorporation
(d) Commencement

15. This is the main document of a company, which is compulsory and it defines the external relations with its outsiders.

(a) Memorandum of Association
(b) Partnership Deed
(c) Articles of Association
(d) Prospectus

16. The deposit which has the highest interest rate is

(a) Savings

(b) Fixed
(c) Current
(d) Recurring

17. Choose the correct statement in relation to non-registration of a partnership firm

(a) A partner cannot sue the firm
(b) The firm cannot sue the partner
(c) The third parties cannot sue the firm
(d) The firm cannot sue third parties

18. Artificial person having a separate legal entity, perpetual succession and a common seal is:

(a) Partnership firm
(b) Company
(c) Cooperative society
(d) Sole proprietorship

19. This type of partnership is formed for the accomplishment of a particular project

(a) Partnership at will
(b) General partnership
(c) Limited partnership
(d) Particular partnership

20. ------------- is an agreement between persons who have agreed to share the profits of the business carried on by all any one of them acting for all

(a) Sole proprietorship
(b) Joint Stock Company
(c) Partnership
(d) Cooperative society

II. VERY SHORT ANSWER QUESTIONS

21. Briefly explain the following terms:

a) Perpetual succession
b) Unlimited liability
c) Partner by estoppel

22. If registration is optional, why do partnership firms willingly go through this legal formality and get themselves registered?

23. Differentiate between a public company and a private company.

24. Explain a cooperative society.

25. Explain the liability and control of business of the members of Hindu undivided family.

26. Briefly explain the stage capital subscription in the formation of a company.

III. LONG ANSWER QUESTIONS

27. Explain the factors that influence the choice of a suitable form of business organization.

28. Discuss the salient features of a partnership firm.

29. “One man control is the best in the world if that one man is big enough to manage everything”. Explain this statement.

30. “A company is an artificial person created by law having separate legal entity, perpetual succession and a common seal”. Comment.

31. Differentiate between Memorandum and Articles of Association.

32. “A private company has certain distinct features as compared to a public company”. Explain.

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