CBSE Class 11 Business Studies Forms Of Business Organisation Worksheet

Read and download free pdf of CBSE Class 11 Business Studies Forms Of Business Organisation Worksheet. Students and teachers of Class 11 Business Studies can get free printable Worksheets for Class 11 Business Studies in PDF format prepared as per the latest syllabus and examination pattern in your schools. Standard 11 students should practice questions and answers given here for Business Studies in Grade 11 which will help them to improve your knowledge of all important chapters and its topics. Students should also download free pdf of Class 11 Business Studies Worksheets prepared by school teachers as per the latest NCERT, CBSE, KVS books and syllabus issued this academic year and solve important problems provided here with solutions on daily basis to get more score in school exams and tests

Forms Of Business Organisation Class 11 Business Studies Worksheet Pdf

Class 11 Business Studies students should refer to the following printable worksheet in Pdf for Forms Of Business Organisation in standard 11. This test paper with questions and answers for Grade 11 Business Studies will be very useful for exams and help you to score good marks

Class 11 Business Studies Worksheet for Forms Of Business Organisation

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


Question. ……….. defines the rules regarding internal management of a company.

(a) Articles of association
(b) Partnership deed
(c) Memorandum of association
(d) Certificate of incorporation

Answer : A

Question. …………….. clause contains the name of the company with which the company will be known, which has already been approved by the registrar of companies.
(a) Name
(b) Registered office
(c) Objects
(d) Liability

Answer : A

Question. Application for approval of name of a company is to be made to
(a) SEBI
(b) Registrar of companies
(c) GOI
(d) State government in which company is registered

Answer : B

Question. Name the type of partner who is not really a partner but is liable to third parties for the repayment of the firm’s debts.
(a) Sleeping
(b) Active
(c) Nominal
(d) Secret

Answer : C

Question. Name the process by which the shares of a company are allowed to be traded on a stock exchange.
(a) Trading on shares
(b) Listing of shares
(c) Mutualisation of shares
(d) None of the above

Answer : B

Question. After doing her M.Com. from ‘Himachal Pradesh University of Shimla’, Aparna went back to her village in Kinnaur district of Himachal Pradesh. She wanted to contribute for the development of women of her village, so she formed an organisation, the membership of which was open for all the women villagers on a voluntary basis by paying ₹ 500 only which will be treated as their capital.
Aparna knew that the land of her village was suitable for the farming of medicinal plants. So she motivated the members of her organisation for growing medicinal plants in their fields under the guidance and help of the local agricultural department.
It was also decided that the organisation will purchase the produce of each member and sell the same to drug manufacturing companies at a very good price which was not possible for the members individually. The main objective of the organisation is to render services to its members rather than to earn profit.
A computer training center for young boys and girls of the village was started under the guidance of Aparna from the surplus of the profits.
On the basis of the given information, identify the kind of organisation that was formed by her.
(a) Cooperative society
(b) Company
(c) HUF
(d) Partnership

Answer : A

Question. The person or group of persons who perform the work of promotion and form a company is/are known as promoter(s).
(a) True
(b) False
(c) Can’t say
(d) Partially true

Answer : A

Question. Match the following.

Chapter 2 Forms of Business Organisation_6

Codes
      A     B    C      D 
(a) (i)   (iii)  (ii)   (iv)
(b) (iii)  (ii)  (i)    (iv)
(c)  (i)   (ii)  (iii)   (iv)
(d) (ii)  (iii)  (iv)   (i)

Answer : D

Question. A company cannot come into existence without
(a) electing directors
(b) getting certificate of incorporation
(c) issuing a prospectus
(d) All of the above

Answer : B

Question. ‘Return of allotment’, signed by a director or secretary is filed with the registrar companies within how many days of allotment of shares?
(a) 15 days
(b) 8 days
(c) 10 days
(d) 30days

Answer : D

Question. In a cooperative society, which of the following principle is followed?
(a) One share one vote
(b) One man one vote
(c) No vote
(d) Multiple votes

Answer : B

Question. A partner by………….is a person who though is not a partner in a firm but knowingly allows himself/herself to be represented as a partner in a firm.
(a) active partner
(b) sleeping or dormant partner
(c) secret partner
(d) partner by holding out

Answer : D

Question. …………… clause specifies the maximum capital which the company will be authorised to raise through the issue of shares.
(a) Name
(b) Capital
(c) Objects
(d) Liability

Answer : B

Question. A type of business organisation where a person is individually responsible for capital, bearing risk and control of management is called …… .
(a) Joint stock company
(b) Cooperative society
(c) Sole proprietorship
(d) Partnership

Answer : C

Question. The ………… is a conclusive evidence of the regularity of the incorporation of a company.
(a) articles of association
(b) partnership deed
(c) memorandum of association
(d) certificate of incorporation

Answer : D

Question. Members may come and members may go, but the company continues to exist. Identity the feature of company highlighted here.
(a) Perpetual succession
(b) Formation
(c) Separate legal entity
(d) Artificial person

Answer : A

Question. Match the following forms the business organisation with their suitable example.

Chapter 2 Forms of Business Organisation_3

Codes
      A    B   C    D 
(a) (i)  (ii) (iii) (iv)
(b) (ii) (iv) (iii) (i)
(c) (iv) (iii) (ii) (i)
(d) (ii) (iii) (iv) (i)

Answer : B

Question. It can continue as long as the partners want and is terminated when any partner gives a notice of withdrawal from partnership to the firm.
(a) Partnership at will
(b) Particular partnership
(c) General partnership
(d) Limited partnership

Answer : A

Question. Samarth Sharma was born in Delhi and is a fashion designer. He runs his hi-fashion garments business from the posh Greater Kailash market of Delhi. After running the business for eight years, Samarth feels that he should get his business registered in a way that he can save himself from the threat of unlimited liability.
But at the same time, he doesn’t want anyone else to be a part of decision-making or to interfere in his business. On the basis of the given information, state the form of business organisation to be formed by Samarth. 
(a) Partnership
(b) Public company
(c) Private company
(d) One person company

Answer : D

Question. A public company publishes and files its annual accounts and reports, as it helps company to maintain secrecy.
(a) True
(b) False
(c) Can’t say
(d) Partially false

Answer : B

Assertion-Reasoning MCQs :

Question. Assertion (A) Personal assets of the partners may be used to pay-off business debts in case of insufficiency of business assets.
Reason (R) Partners of a firm have unlimited liability.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : A

Question. Assertion (A) Board of directors exercise direct control over the business.
Reason (R) Board of directors are the owners of the company.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : C

Question. Assertion (A) The managing committee elected by members of the cooperative society is generally not professionally equipped to handle the management functions effectively.
Reason (R) Cooperative society is unable to employ experts because of their inability to pay them high salaries.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : A

Question. Assertion (A) Timely decisions of sole proprietor help him/her to take advantage of market opportunities as and when they arise.
Reason (R) Sole proprietorship can be easily started or dissolved at any time with minimum legal formalities.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : B

Question. Assertion (A) Credit cooperative societies are established for providing easy credit on reasonable terms to the members.
Reason (R) Credit cooperative societies provide loans to members out of the amounts collected as capital and deposits from the members and charge low rates of interest.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is true, but Reason (R) is false
(d) Assertion (A) is false, but Reason (R) is true

Answer : 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

Very Short 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. Vikram is the only owner of his restaurant. Name this form of business organisation.
Answer : Sole proprietorship. 
 
Question. Which is the least regulated form of business?
Answer : Sole proprietorship. 
 
Question. Which form of business is suitable for a tailoring shop?
Answer : Sole proprietorship because personal attention is required.
  
Question. In sole proprietorship business, there is no chance of leaking the information to public. Name the merit which this statement is indicating.
Answer : Confidentiality of information or secrecy.
  
Question. Is a sole proprietor bound to publish his businesses accounts?
Answer :  No. 
 
Question. Which business organisation is least advantageous on the basis of availability of capital?
Answer : Sole proprietorship. 
 
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. Can there be Joint Hindu Family Business outside India?
Answer :  No, it is found in India only.
  
Question. Name the system which allows only male members of the family business to be co-parceners.
Answer : Mitakashara. 
 
Question. Name the State in which Mitakashara system is not adhered.
Answer : West Bengal. 
 
Question. Who are co-parceners?
Answer : Co-parceners are the members of the Joint Hindu Family Business other than Karta.
  
Question. Name the person who manages and controls a Hindu Undivided Family Business.
Answer : Karta. 
 
Question. What is the basis of membership in the Joint Hindu Family Business?
Answer : Birth in a particular family.
  
Question. What happens to Joint Hindu Family Business if Karta or any other member dies?
Answer : Business continues.
 
Question. Name that form of business organisation where the members are jointly as well as individually liable for payment of firm’s debts.  
Answer : Partnership.

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.


1. Explain the terms ‘preliminary contracts’ and ‘provisional contracts.’

2. Explain the term ‘Minimum Subscription’.

3. Differentiate between private and public company.

4. “Registration of a partnership firm is not compulsory but it is beneficial.” Do you agree? Give reasons.

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

6. Which document is to be issued by a public company for raising capital?

7. Explain the following terms:

   a. Perpetual succession

   b. Common seal

   c. Karta

   d. Artificial person

8. Compare the status of a minor in a Joint Hindu Family Business with that in a partnership firm.

9. In which form of organization is a trade agreement made by one owner binding on the others? Give reasons to support your answer.

10.Why does the company cannot use personal property of shareholders to pay off business debts?

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Chapter 1 Business Trade and Commerce
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
Chapter 2 Forms of Business Organisation
CBSE Class 11 Business Studies Forms Of Business Organisation Worksheet
Chapter 3 Private Public and Global Enterprises
CBSE Class 11 Business Studies Private Public And Global Enterprises Worksheet Set A
CBSE Class 11 Business Studies Private Public And Global Enterprises Worksheet Set B
Chapter 4 Business Services
CBSE Class 11 Business Studies Business Services Worksheet
CBSE Class 11 Business Studies Types Of Business Services Worksheet
Chapter 5 Emerging Modes of Business
CBSE Class 11 Business Studies Emerging Modes Of Business Worksheet
Chapter 6 Social Responsibilities of Business and Business Ethics
CBSE Class 11 Business Studies Business And Business Ethics Worksheet
CBSE Class 11 Business Studies Social Responsibilities Worksheet Set A
CBSE Class 11 Business Studies Social Responsibilities Worksheet Set B
Chapter 7 Formation of a Company
CBSE Class 11 Business Studies Formation Of Company Worksheet
Chapter 8 Sources of Business Finance
CBSE Class 11 Business Studies Sources Of Business Finance Worksheet Set A
CBSE Class 11 Business Studies Sources Of Business Finance Worksheet Set B
Chapter 9 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
CBSE Class 11 Business Studies Internal Trade Worksheet Set C
Chapter 11 International Business
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CBSE vide Circular No.Acad-51/2021 dated 5th July, 2021, notified that in the session 2021-2022, Board Examinations would be conducted in two terms, i.e.. Term I and Term II. This decision was taken due to the uncertainty arising out of COVID 19 Pandemic. Term I...

Class 10th and 12th Term 2 Revaluation Process 2022

Evaluation of the Answer Books is done under a well-settled Policy. To ensure that the evaluation is error free, CBSE is taking several steps. After strictly following these steps, the result is prepared. Though, CBSE is having a well-settled system of assessment,...