CBSE Class 11 Business Studies Forms Of Business Organisation Worksheet Set A

Case Based MCQs :

Some of the people of Dwarkapuri unitedly established a cooperative society. Its objective was to purchase the goods of daily consumption directly from the producers and sell to the members. By doing so, now they are getting goods of a high quality at a reasonable rate. In the proximity of Dwarkapuri, there is an industrial area in which there are several small producers. They are struggling against the problem of procuring the raw material at a reasonable rate and selling the produced goods at a reasonable rate. 
Some prudent producers consulted all of them and established a cooperative society. This society resolved the problems of the producers related to buying and selling. 
Similarly, in Nand Nagri too, there are several such people which produce several goods in small-small quantities. Some big buyers buy their goods at cheap rates and sell them at high rates in the market. They earn huge profits. Small producers also made a society in order to get rid of their clutches and heaved a sigh of relief.
In Nand Nagri itself, there live a large number of people whose financial position is poor. Usually, they borrow money from the rich at a high rate of interest. They also formed a society which fully succeeded inmaking themget rid of the clutches of the rich.

Question. Which form of business organisation is discussed in the above case?
(a) Joint stock company
(b) Cooperative organisation
(c) Partnership
(d) Sole proprietorship

Answer : B

Question. Identify the cooperative society established by the people of Dwarkapuri.
(a) Cooperative Credit Society
(b) Marketing Cooperative Society
(c) Producers’ Cooperative Society
(d) Consumers’ Cooperative Society

Answer : D

Question. Tell the name of the cooperative society established by the producers of the industrial area located in the proximity of Dwarkapuri.
(a) Cooperative Credit Society
(b) Marketing Cooperative Society
(c) Producers’ Cooperative Society
(d) Consumers’ Cooperative Society

Answer : C

Question. Name the cooperative society formed by the producers of Nand Nagri in order to solve their problem. 
(a) Cooperative Credit Society
(b) Marketing Cooperative Society
(c) Producers’ Cooperative Society
(d) Consumers’ Cooperative Society

Answer : B

Question. Identify the society formed by the financially poor people of Nand Nagri.
(a) Cooperative Credit Society
(b) Marketing Cooperative Society
(c) Producers’ Cooperative Society
(d) Consumers’ Cooperative Society

Answer : A

Unlike a partnership or a proprietorship firm, this form of business organisation is separate from its owners.
It is a separate legal entity and no single member is liable for such an organisation’s activities.
Such a firm will not depend on any owner or shareholder to decide its future course of action. 
Irrespective of members come and go; shares are bought and sold, dividends are earned and distributed; such a form of business organisation goes on. It is  managed democratically, by the representatives chosen from the shareholders.

Question. Identify the form of business organisation highlighted in the above case.
(a) Partnership
(b) Cooperative organisation
(c) Joint stock company
(d) Sole proprietorship

Answer : C

Question. “This form of business organisation is separate from its owners”, which characteristics of above mentioned business is highlighted in the lines?
(a) Perpetual succession
(b) Separate legal entity
(c) Artificial person
(d) Profit sharing

Answer : B

Question. “Irrespective of members come and go; shares are bought and sold, dividends re earned and distributed; such a form of business organisation goes on”, which characteristics of above mentioned business is highlighted in the lines?
(a) Perpetual succession
(b) Separate legal entity
(c) Artificial person
(d) Profit sharing

Answer : A

Question. “It is managed democratically, by the representatives chosen from the shareholders”. ……………. are chosen by the shareholders.
(a) promoters
(b) underwriters
(c) board of directors
(d) managers

Answer : C

Question. Such business organisation is created by ……… .
(a) owners
(b) shareholders
(c) board of directors
(d) law

Answer : D

The whole family of Rama Narayan is busy in a special kind of business. They are running a business organisation which is found only in India. Except Rama Narayan, the liability of all the other members is limited. Rama has a friend whose name is Mr Maya.
He is also running a special kind of business. He has established a company in which he is the only shareholder. In other words, he himself has invested the whole capital. He has nominated his wife in the company. 
Mr Maya has two sons, Krishna and Shayam. Krishna has completed his studies of M.B.A. and Shayam, his engineering studies. Krishna has been selected for the post of finance manager in a company.
A special characteristic of his company is that there is a ban on the transfer of its shares. On the other hand, Shayam, too has been selected for the post of production manager in another company.
At the time of his interview, Shayam made a special observation that out of the total number of seven of his interviewers, five of them were directors of the company.

Question. Identify the business organisation being run by Rama Narayan.
(a) Partnership
(b) One person company
(c) Joint hindu family business
(d) Private company

Answer : C

Question. Identify the company being run by Mr Maya.
(a) Partnership
(b) One person company
(c) Joint hindu family business
(d) Private company

Answer : B

Question. Identify Mr Krishna’s company, in which he is selected for the post of finance manager.
(a) Public company
(b) One person company
(c) Private company
(d) None of the above

Answer : C

Question. To which class does Mr Shayam’s company belong?
(a) Public company
(b) One person company
(c) Private company
(d) None of the above

Answer : A

Question. What term is used for Rama Narayan in his business?
(a) Owner
(b) Member
(c) Karta
(d) Partner

Answer : C

Miss Jyoti, Rishi and Vijay are running a firm in partnership. The main objective of their firm is to make a high quality wheat available to the public at a cheap rate. 
A special characteristic of this firm is that the liability of all the partners is unlimited. The second special characteristic of the firm is that Miss Jyoti has a capital investment in the company.
 She gets the share in profit and loss as well as remains active in management. But the outsiders are not aware of her being a partner. Mr Rishi spends more time than the other partners in business. 
This is the very reason that he gets ₹ 1 lakh extra on account of his salary per month. Vijay introduced capital in the business but does not take part in the management of the company. The business of the firm is growing fast. With the increase in size of the business, the number of partners is also increasing. By now, its number has reached 20.

Question. Identify the type of partnership highlighted in the given case.
(a) General partnership
(b) Limited partnership
(c) Partnership at will
(d) Particular partnership

Answer : A

Question. Which of the following types of partners is Miss Jyoti?
(a) Active partner
(b) Sleeping partner
(c) Secret partner
(d) Nominal partner

Answer : C

Question. Identify the agreement on the basis of which Rishi gets his salary.
(a) Partnership deed
(b) Memorandum of association
(c) Both (a) and (b)
(d) None of the above

Answer : A

Question. Which of the following type of partner is Vijay?
(a) Active
(b) Sleeping
(c) Secret
(d) Estoppel

Answer : B

Question. Which of the following types of partners is Mr. Rishi?
(a) Active partner
(b) Sleeping partner
(c) Secret partner
(d) Nominal partner

Answer : A

Madhu, Himanshu and Ashu after completing B.E. in civil engineering have jointly taken a project of constructing three government. school buildings in a village near Agra, within the time period of 6 months. As per the written agreement between them, only Madhu and Ashu will contribute the capital, take all managerial decisions and Himanshu will contribute capital only but will not be actively involved in management.

Question. Himanshu will contribute capital only but will not be actively involved in management. What type of partner Himanshu is?
(a) Active
(b) Dormant
(c) Nominal
(d) Secret

Answer : B

Question. Specify the kind of partnership mentioned above.
(a) Limited partnership
(b) Particular partnership
(c) Partnership at will
(d) General partnership

Answer : B

Question. Identify the document which defines the terms and conditions of such partnership.
(a) MoU
(b) MoA
(c) Partnership deed
(d) Partnership registration

Answer : C

Question. If the partners are not able to complete the project effectively and efficiently, then who will be held liable for the losses for non-completion of the project?
(a) Madhu
(b) Himanshu
(c) Both Madhu and Mayank
(d) All three of them

Answer : D

Question. What type of partner Madhu and Ashu are?
(a) Active
(b) Dormant
(c) Nominal
(d) Secret

Answer : A

Importent Questions for Ncert Class 11 Business Studies Forms of Business Organisation

Short Answer Type Questions :

Question. Is it necessary for every company to file a prospectus? 
Answer :  No, it is not necessary for every company to file a prospectus. Since a private company is prohibited to raise funds from public, it does not need to issue a prospectus. A public company which does not raise funds from the public (as it is confident of obtaining the required funds from private sources) need not issue a prospectus. However, it will have to fill a statement in lieu of prospectus with the Registrar of Companies.

Question. A public limited company cannot make allotment of shares unless it receives in cash 90% of the issued amount within 120 days from the date of the closure of the issue. By what name this amount is known? 
Answer :  Minimum subscription.

Question. Which forms of business organisation is considered to be the most advantageous on the basis of:
(a) Ease of formation. (b) Continuity.
(c) Availability of capital. (d) Cost of formation.
(e) Transfer of ownership. (f) Flexibility. 
Answer :  (a) Sole proprietorship. (b) Company.
(c) Company. (d) Sole proprietorship.
(e) Company. (f) Sole proprietorship.

Question. Gurpreet, Subhash and Poonam are partners of a garment manufacturing firm is planning to manufacture bags for the utilisation of waste material of one of their garment units. They decided that this manufacturing unit will be set up in a rural area of Rajasthan where people have very less job opportunities and labour is available at very low rates. They also decided to donate 10% of the revenue generated from the sale of bags to a nearby Orphanage. Out of three partners, Poonam is that partner whose relation with the firm is not known to the general public.
(a) Which type of human activity is highlighted in the above case?
(b) Name the category of the human activity identified in (a) above.
(c) In the above case, which type of partner Poonam is?
(d) Identify any two values which are reflected in the above para. 
Answer :  (a) Economic activity.
(b) Business activity.
(c) Secret partner.
(d) Values: (any two)
(i) Providing job opportunities in rural areas.
(ii) Optimum utilisation/management of waste resources.
(iii) Economic development and upliftment of backward areas.
(iv) Fulfilment of social responsibility.

Question. For which of the following types of business do you think a partnership form of organisation would be more suitable, and why? 
(a) Grocery store. (b) Medical clinic.
(c) Legal consultancy. (d) Craft centre.
(e) Internet cafe. (f) Chartered accountancy firm.
Answer :  (c) and (f)
Reasons:
(a) In a partnership, the capital is contributed by a number of partners. This helps in expanding business and earning higher profits.
(b) Partnership has flexibility in its operations. Balanced decision-making is possible.
(c) The risks are shared by all the partners.
(d) Partnership firm integrates brains of two or more people and thus ensures better management of the business.

Question. Documents for registration were filed before the Registrar of Companies by the promoters of a proposed company on 6th January. ‘Certificate of Incorporation’ was issued on 8th January. But the date mentioned on the certificate was 6th January. The company allotted some shares to Rahul on 6th January. Was the allotment valid? Give reason. 
Answer :  Yes, the allotment of shares to Rahul was valid because in the eyes of law the company was registered on 6th January since the date mentioned on the ‘Certificate of Incorporation’ was 6th January. The ‘Certificate of Incorporation’ is the conclusive proof of the legal existence of the company.