CBSE Class 11 Business Studies Forms of Business Organisation And Company Worksheet

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Chapter 2 Forms of Business Organisation Business Studies Worksheet for Class 11

Class 11 Business Studies students should refer to the following printable worksheet in Pdf in Class 11. This test paper with questions and solutions for Class 11 Business Studies will be very useful for tests and exams and help you to score better marks

Class 11 Business Studies Chapter 2 Forms of Business Organisation Worksheet Pdf

Very Short Answer Type Questions  

 

Question : Which form of organisation is considered to be the simplest form of organisation?
Answer : Sole proprietorship. 
 
Question : Name the enterprise involving single ownership.
Answer : Sole proprietorship.
 
Question : List any two businesses where sole proprietorship would be suitable form of business.
Answer : (a) Beauty parlour. (b) Grocery store.
 
Question : “If the business fails, the creditors can recover their dues from personal property of the proprietor.” Which feature of sole proprietorship is highlighted in this statement?
Answer : A sole proprietor has unlimited liability.
 
Question : “Working for oneself provides personal satisfaction.” Which advantage of sole proprietorship is highlighted in this statement?
Answer : Sense of accomplishment.
 
Question : Why the size of sole proprietorship generally remains small?
Answer : Due to limited resources.
 
Question : Name the form of business organisation found only in India.
Answer : Hindu Undivided Family Business.
 
Question : “The control of the business lies with the eldest member of the family.” To which form of business organisation is this applicable.”
Answer : Hindu Undivided Family.
 
Question : Name the two systems that govern membership in the family business.
Answer : Dayabhaga system and Mitakashara system.
 
Question : Name the system which allows both male and female members of the family business to be co-parceners.
Answer : Dayabhaga.
 
Question : How many members must be there in a joint family to carry on Joint Hindu Family Business?
Answer : Minimum two members.
 
Question : Name the Act which governs Joint Hindu Family Business.
Answer : The Hindu Succession Act, 1956.
 
Question : Can a minor become a member of a Hindu Undivided Family Business?
Answer : Yes.
 
Question : Whose decisions are binding on all the members of the Joint Hindu Family Business?
Answer : Karta.
 
Question : What is the main cause of decline in Joint Hindu Family Business.
Answer : Diminishing number of Joint Hindu Families.
 
Question : In which form of organisation is a trade agreement made by one owner binding on the others?
Answer : Partnership.
 
Question : Name the form of business organisation wherein members are agents and principals of each other.
Answer : Partnership.
 
Question : What is ‘the minimum number of members required to start a partnership firm?
Answer : Two members.
 
Question : Name the basic document prepared in partnership firm.
Answer : Partnership deed.
 
Question : Why is it advisable to have a written agreement of partnership?
Answer : To avoid any dispute among the partners which may arise in future.
 
Question : Name the type of partnership whose existence depends on the will of the partners.
Answer : Partnership at will.
 
Question : “Wadhwa Brothers is a firm formed for the construction of a shopping mall.” Identify this type of partnership.  
Answer : Particular partnership.
 
Question : Name the type of partner who contributes capital and shares profits/losses but does not take part in the day-to-day management of the firm.
Answer : Sleeping or dormant partner.
 
Question : Name the partner who assumes liability without sharing in the profits of the business.
Answer : Nominal partner.
 
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 partner who shares in profit only.
Answer : Minor partner.
 
Question : Give any one consequence of non-registration of a partnership firm.
Answer : An unregistered firm cannot file a suit against third parties.
 
Question : Which form of business organisation has the main objective of rendering service to its memberspartnership firm or cooperative society?
Answer : Cooperative society.


Short /Long Answer Type Questions 


  
Question : Virat and Tarun are first cousins. After completing a degree course in law, Tarun wishes to start a law firm jointly. However, Virat shares with Tarun that he plans to go abroad after two years to persue a masters course in law. Therefore, their partnership can exist only for two years.
Tarun agrees with Virat’s decision.
(i) Identify and state the type of partnership being highlighted above.
(ii) Name the basis under which this type of partnership is classified.
(iii) Also, name other type of partnership which can be classified under the same basis as identified in part (ii) above.
Answer : (i) Particular partnership. 
(ii) Particular partnership is classified under the basis of duration.
(iii) Partnership at will.
 
Question : Lalit, Saksham and Mayank are partners in a firm. Lalit and Sakshm are very upset due to untimely demise of Mayank and wish to help his family. On the suggestion of their common friend Aditya, Lalit and Saksham decide to include Mayank’s 13 year old son Vaibhav in their business.
(i) Comment upon the status of Vaibhav as a partner.
(ii) Will the status of Vaibhav change when he attains majority? 
Answer : (i) Vaibhav is a minor and can be admitted only to the benefits of a partnership firm with the mutual consent of all other partners. As only a major can enter into a valid contract with others, Vaibhav cannot become a partner in any firm. His liability is limited to the extent of capital invested by him in the firm. He can share only the profits and cannot be asked to bear the losses. He will not be eligible to take an active part in the management of the firm.
(ii) On attaining majority the status of Vaibhav as a partner changes. He has to decide whether he would like to become a partner in the firm. He has to give a public notice of his decision within six months of attaining majority. If he does not give any notice within a period of six months, he will be treated as a full-fledged partner for the debts of the firm since the date he becomes partner in the firm (during his minority). He will also be allowed to take an active part in the management, like any other active partner.
 
Question : Nakul, Karan and Ramesh are partners in a partnership firm manufacturing electrical appliances.
Their firm is not registered. Recently, in order to increase the profits of the firm, Karan decided to use substandard raw materials without the knowledge of Nakul and Ramesh. As a result, many accidents were reported by the consumers and a case has been filed against the firm.
(i) Is this wrong act of Karan binding on Nakul and Ramesh too? State the related characteristic of the partnership form of business organisation.
(ii) Can Nakul and Ramesh file a case against Karan? Why or why not? Give a suitable reason in support of your answer.
(iii) List any two values being ignored by Karan. 
Answer : (i) Yes, this wrong act of Karan is binding on Nakul and Ramesh too. Explain ‘Mutual Agency’ as a feature of partnership. 
(ii) No, Nakul and Ramesh cannot file a case against karan as their firm is not registered.
(iii) The two values being ignored by Karan are :
(a) Trust (b) Quality
 
 
Question : ‘A to Z solutions’ is a well-known advertising agency in Kerela. The company has already raised its entire authorised capital of Rs. 10 crores through issue of shares. The company needs more funds to finance its expansion projects. Can the company issue more share capital to meet the shortage of funds? Why or why not? 
Answer : No, the company cannot issue more share capital to meet the shortage of funds as it has already raised its entire authorised capital of Rs. 10 crores through issue of shares. The capital clause in the memorandum of Association specifies the maximum capital which the company will be authorised to raise through the issue of shares. The said company cannot issue share capital in excess of the amount mentioned in this clause. It will have to make amendments in the memorandum first.
 
Question : ABC Ltd. filed an application for registration to registrar of companies. He submitted copy of name approval, memorandum of association, articles of association, address of registered office and paid the required registration fees. His application for registration was rejected on the ground of not submitted some others important documents. List the documents he needs to file so that he can get his company incorporated. 
Answer : (a) Statement of authorised capital.
(b) Consent of proposed directiors.
(c) Statutory declaration.
(d) The agreement, if any, with proposed Managing Director or Whole time Director or Manager.
 
Question :  X and Y are best friends. They decided to start a business. Both of them contributed equal amount in the business. Being good friends, they did not sign any agreement. After some time conflicts rose between them. They start arguing with each other because of difference in opinions. This affected their business adversely.
(a) Name and state the form of business they have started.
(b) What mistake they have done? 
Answer : (a) Partnership.
(b) They have no ‘Partnership Deed’.
 
Question : Gurleen did her post-graduation from Manipur University, Imphal. She had offers to join in reputed firms in metropolitan cities like Delhi and Mumbai. Instead of joining any of these firms she decided to do some creative work in Imphal. She observed that a special type of chilli is grown by the farmers in most of the villages in Imphal. This chilli has a distinct flavour and pickle made from this chilli has a taste which may be liked by people from the rest of the country. But the farmers were neither trained for this kind of farming of this kind of chilli on a large scale nor was there a secured market for their produce. Gurleen met 18 like-minded women of the area and formed an organisation for doing the business of pickle manufacturing.
Each of them contributed Rs. 2,00,000 towards its capital and were equally responsible for its management. On the one hand they assured the farmers to purchase their chilli and on the other hand, the organisation with the help of local agriculture department arranged for the training of the farmers. They also employed 10 local unemployed graduate girls for doing the various operations of pickle making.
(a) Identify the kind of organisation that was formed by Gurleen.
(b) Explain its two advantages and disadvantages.
(c) State any one value which Gurleen wanted to communicate to the society. 
Answer : (a) Partnership. 
(c) Values:
(i) Providing job opportunities. (ii) Pooling of resources. (iii) Courage.
 
Question : Sanya is a sole proprietor running a boutique in West Delhi. She has been offered a contract by a trader for manufacturing fashionable garments. She immediately took the decision and accepted the offer. She takes maximum efforts to make her business successful as she is the sole recipient of all profits.
(a) I dentify the two merits of sole proprietorship form of business organisation highlighted above by quoting the lines.
(b) Also explain three other merits of sole proprietorship. 
Answer : (a) (i) Quick Decision Making
‘She immediately took the decision and accepted the offer.’
(ii) Direct Incentive
‘She takes maximum efforts to make her business successful as she is the sole recipient of all profits.’
 
 
Question : Aryan started a business of selling teenage garments along with his long-time friend Himanshu.
They had very less capital to start their business but each had expertise of marketing and finance which may help in earning profits.
(a) State and define the type of form of business organisation that they have ventured into.
(b) Explain any two possible cause of business risk in this new venture. 
Answer : (a) Partnership. 
(b) (i) Natural causes. (ii) Human causes. 
(iii) Political causes. (iv) Other causes.
 
Question : Akhil was living in a small town of Orissa and was engaged in his family business of making rubber and plastic products. As he was not able to get a reasonable price for his products, he contacted Rohit, who convinced him that he will take his products to the city every fortnight and will sell them at a higher price. Akhil was very happy to hear this.
Although, Rohit used to take his products to the city, but he used to charge very high commission for this. As a resut, Akhil contacted all the small producers of his town and formed a cooperative society. He used to pool the output of all the individual members and took it to the city to sell the output at best possible price.
Name and state the form of cooperative society formed by Akhil by quoting the line. Also suggest any one value followed by Akhil. 
Answer : Marketing Cooperative Society. 
“He used to pool the output of all the individual members and took it to the city to sell the output at best possible price.”
 
Question : ‘A Ltd.’, the famous group of promoters submitted an application to the Registrar of the company for the approval of name for a soft drink company. They chose the name as ‘Pepsy Ltd.’ so as to increase the sales because Pepsi is a well known established brand. The selected name was rejected by the registrar of the company. 
Why was the proposed name rejected by the registrar?
Answer : It was similar to an existing company name.
 
Question : Mohit was born and brought up in Punjabi Bagh, Delhi. He wanted to start a garments manufacturing unit in Rohini. His father suggested to go for sole-proprietorship. But he want to start a company. But his father did not approve of his idea, as according to him one person cannot open a company. But Mohit insisted that he want to form a company by raising funds from public.
(a) Can Mohit form a company?
(b) What kind of a company can be formed by him?
(c) Who are eligible to incorporate this kind of company?
(d) What are the restrictions on the business carried on by these companies?
Answer : (a) Yes.
(b) ONE PERSON COMPANY (OPC).
(c) A natural person, who is an Indian Citizen and resident of India can incorporate OPC.
(d) An OPC cannot carry out Non-Banking Financial Investments activities.
 
Question : Gurpreet, Agam, Shenoy, Dev and Lakshay are partners in a partnership firm. The firm has different types of partners. Gurpreet has contributed capital and participates in the management of firm. He shares profits & losses and is liable to an unlimited extent to the creditors of firm. Agam has contributed capital and shares its profits and losses. He also has unlimited liability but he does not take part in day to day activities of business. Shenoy is a partner, his association with the firm is unknown to general public but in all other respects he is like an active partner.
Dev has allowed the firm to use his name as he enjoys good reputation among clients but he does not either contribute capital nor take part in the management. Lakshay, is 15 years of age, and is entitled to the benefits of partnership with mutual consent of all other members. He is not eligible to take part in management of firm and shares only profits and not losses.
(a) In the given case, how many types of partners are involved in the partnership firm?
(b) Who is working as an active partner and what is the nature of his liability?
(c) Who is working as sleeping partner and what is the nature of his liability?
(d) Who is working as secret partner and what is the nature of his liability?
(e) Who is working as nominal partner and what is the nature of his liability?
(f) Is Lakshay a legal partner? Can he be held for the losses of the business? What is the nature of his liability? 
Answer : (a) Five
(b) Gurpreet-unlimited liability
(c) Agam-unlimited liability
(d) Shenoy-unlimited liability
(e) Dev-unlimited liability.
(f) Yes, he is a legal partner. No, he cannot be held liable for the losses of the business. His liability is limited to the extent of capital contributed by him.
 
Question : A group of 15 people decides to form a company and hence appointed Creators Pvt. Ltd. Creators Pvt. Ltd. were assigned the job of scanning the business environment and to identify various business opportunities. After thoroughly exploring the environment, Creators Pvt. Ltd. suggested them to start a ‘Cab Services’ in the posh areas of Delhi. Before converting the business opportunities into real project, Creators Pvt. Ltd., conducted feasibility studies and also suggested the name for the company. They have entered into contract on behalf of the company also.
(a) Identify the stage in the formation of a particular form of business organisation.
(b) Under what category is Creators Pvt. Ltd. is working.
(c) Are the contracts which are entered into before incorporation, of above mentioned form of organisation, are binding after incorporation? 
Answer : (a) Promotion.
(b) Creators Pvt. Ltd. is working as promoters.
(c) Yes.
 


1. Define sole proprietorship 

2 There are certain business that require license to start a business as a sole trader. Name any two.

3. Salvira wants to open a beauty parlour in her locality. Which form of business organization is suitable for her?

4. Give the name of the members of the family who are having equal ownership rights over the property of ancestors.

5. Mr. Ram, owner of HUF business, does not have a son. If he adopts a male child, can he be treated as a co-parcener?

6 Which school of Hindu Law allows both the male and female members of the family to be co-parceners?

7 Which school of Hindu Law allows only the male members to be co-parceners in the business?

8 Mr. Ravi, owner of a chain of restaurants, celebrates the occasion of marriage of his daughter. Can he gift HUF property to his daughter in her marriage? Discuss.

9. Define Partnership. 

10 Can an unregistered firm file a suit against partners? 

11 Who issues the Certificate of Registration to a firm? 

12. Can a minor be a partner? 

13. “ If the business fails, the creditors can recover their dues from the personal property of any one of the partners”. Name the characteristic of partnership which is hidden in quoted lines.

14. “ Partnership comes to an end with the death, retirement, lunacy of any partner’. Identify which limitation is highlighted in the quoted lines.

15. Define a cooperative society. 

16. How does a cooperative society obtain its capital? 

17. Who control the functioning of the cooperative society? 

18. Give the principles on which a cooperative society works. 

19. Which act governs the company form of organization? 

20. Define a joint stock company. 

21. Why is a company called an artificial person? 

22 The liability of a member of a company is limited up to which amount? 

23 Is it necessary for a public company to get its shared listed on a stock exchange?

24 Which societies are established to help small producers in selling their products?

25. Why is it said that sole proprietor is a sole risk bearer and profit recipient? 

26 HUF business suffers from the disadvantage of centralization of power. Do you agree? Give reasons in support of your answer.

27 “The partners of a partnership firm are jointly and individually liable for the debts of the firm”. Discuss.

28 Give the distinct features of general partnership. 

29. Give the features of limited partnership.

30. Give the features of partnership at will and particular partnership. 

31. Why is it necessary to have a partnership deed? 

32. You are giving a speech on the drawbacks of cooperative societies. In context to it, state some of the drawbacks that you may elaborate.

33. Why it is said that companies have a separate legal entity? 

34. Explain with the help of an example, how is the liability of members in a joint stock company limited.

35. To promote a company, what series of steps are required to be conducted? 

36. What do you understand by statement in lieu of prospectus? 

37. “MoA is significant for a company”.Discuss. 

38. What do you understand by qualification shares? 

39. Explain briefly the relevance of the Certificate of Incorporation. 

40. Explain briefly the relevance of the Certificate of Commencement of business. 

41. Laksha Limited issued prospectus, inviting people to subscribe for its shares. It came up with public issue of Rs.30 crores of 30 lakh shares worth Rs.100 each. It received applications for 15 lakh shares. Should the company proceed with allotment of shares.

42. Kavya is a female. Her grandfather deals in the business of garments and her father is the member of the same. She is the only daughter of her parents. Is she eligible to enter her family business? Comment.

43. One of your friends wants to start a partnership firm. In order to prove that his decision is good, what motivational reasons you would provide?

44. State the duties of a promoter. 

45. `One-man control’ is the best advantage in sole proprietorship business. Discuss.

46. Distinguish between Memorandum of Association and Articles of Association. 

47. Give the differences between sole proprietorship and partnership. 

48. Briefly explain important features of sole proprietorship

49. Discuss important distinctive features of partnership. 

50. Adharika Limited, a famous group of promoters, gets a contract of promoting a toy manufacturing company. Discuss in brief the steps which are required to be followed to form a toy manufacturing company.

51. Give the difference between public company and private company. 

52. You belong to a middle class family. In order to increase your earning, you want to start a provision store which sells good quality products only. As per your judgement which form of organization is better for you and what values will it serve?

53. Saurabh Publications was a private limited company. The publishing business was growing by leaps and bounds. The demand branches and printing base all over the country. The board members were thinking to offer shares to public to meet investment requirements.

On the basis of above case, answer the following questions.

1. Identify the form of organization which board members are thinking of?

2.What two benefits would be denied, if this form is accepted?

3. What two benefits would be availed, if this form is accepted by the company.

54. Expand HUF. What do you understand by it? Explain its main characteristics. 

55. Explain the various kinds of partners in a partnership firm. 

56. Discuss the limitations of a company organisation 

57. What is Memorandum of Association? State its main clauses.

58. `Promoter is neither the trustee nor the agent of the company’.Comment. 

59. During the incorporation of a company, some documents are to be filed. Explain the documents.

60. A company raises funds from the public to meet its financial requirements. Explain the steps required to raise the funds from the public.

 

Please click on below link to download CBSE Class 11 Business Studies Forms of Business Organisation And Company Worksheet

Chapter 01 Business, Trade and Commerce
CBSE Class 11 Business Studies Nature And Purpose of Business Question Bank
CBSE Class 11 Business Studies Nature And Purpose of Business Worksheet Set A
CBSE Class 11 Business Studies Nature And Purpose of Business Worksheet Set B
CBSE Class 11 Business Studies Nature And Purpose of Business Worksheet Set C
Chapter 02 Forms of Business Organisation
CBSE Class 11 Business Studies Forms of Business Organisation And Company Worksheet
CBSE Class 11 Business Studies Forms of Business Organisation Worksheet Set A
CBSE Class 11 Business Studies Forms of Business Organisation Worksheet Set B
CBSE Class 11 Business Studies Forms of Business Organisation Worksheet Set C
Chapter 03 Private Public and Global Enterprises
CBSE Class 11 Business Studies Public Private And Global Enterprises Worksheet Set A
CBSE Class 11 Business Studies Public Private And Global Enterprises Worksheet Set B
CBSE Class 11 Business Studies Public Private And Global Enterprises Worksheet Set C
Chapter 04 Business Services
CBSE Class 11 Business Studies Business Services Worksheet Set A
CBSE Class 11 Business Studies Business Services Worksheet Set B
Chapter 05 Emerging Modes of Business
CBSE Class 11 Business Studies Emerging Modes of Business Worksheet Set A
CBSE Class 11 Business Studies Emerging Modes of Business Worksheet Set B
Chapter 06 Social Responsibilities of Business and Business Ethics
CBSE Class 11 Business Studies Social Responsibilities of Business And Ethics Worksheet
Chapter 07 Formation of a Company
CBSE Class 11 Business Studies Formation of A Company Worksheet
CBSE Class 11 Business Studies Forms of Business Organization And Formation of A Company Question Bank
Chapter 08 Sources of Business Finance
CBSE Class 11 Business Studies Sources of Business Finance Worksheet
Chapter 09 MSME and Business Entrepreneurship
CBSE Class 11 Business Studies Small Business Worksheet
Chapter 10 Internal Trade
CBSE Class 11 Business Studies Internal Trade Worksheet Set A
CBSE Class 11 Business Studies Internal Trade Worksheet Set B
z More Worksheets for Class 11 Business Studies
CBSE Class 11 Business Studies Worksheet Set A Solved
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CBSE Class 11 Business Studies Chapter 2 Forms of Business Organisation Worksheet

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