CBSE Questions for Class 11 Commerce Business Studies Forms Of Business Organisation Quiz 1 - MCQExams.com

If a firm wants to register itself, if will go to ___________.
  • registrar of firms
  • registrar of companies
  • court
  • any of these
Which of the following does not require public notice in case of a Registered Firm?
  • Admission of a Partner
  • Retirement of a Partner
  • Expulsion of a Partner
  • Dissolution of the Firm.
Reconstitute of firm takes place expect in case of _________.
  • admission of partner
  • retirement of partner
  • change in profit sharing ratio
  • insolvency of partner
Mission and Vision statements are NOT commonly used to__________.
  • Guide management's thinking on strategic issues, especially during times of significant change
  • Create wider linkages with customers suppliers and alliance partners
  • Help establish a framework for ethical behaviour
  • Inspire employees to work more productively by providing focus and common goals
The liability of each number of the HUF business is _________.
  • Limited to the extent of share of KARTA
  • Limited to the extent of his share in the business
  • Unlimited
  • Limited to the extent as may be determined by relatives
Which of the following can be treated as advantage of HUF form of business?
  • A HUF business is not affected by the insolvency or death of any member including that of karta
  • An inefficient karta can also do harm to the business
  • The continuity of business is always under threat. It may be due to a small rift within the family and if a co-parcener asks for a partition the business is closed
  • Since the karta has absolute freedom to manage the business, there is scope for him to misuse it for his personal gains
To form a partnership, the parties should share ________.
  • Only losses
  • Only profits
  • Both profits and losses
  • Profits and losses but some partners may get a share only in the profits
Which of the following act is within the implied authority?
  • Acquire immovable property on behalf of the firm
  • Borrowing money on behalf of the firm
  • Enter into partnership on behalf of the firm
  • Transfer immovable property belonging to the firm
Profits and losses of a partnership firm are shared by the partners......
  • In the ratio of capital contributed
  • Equally
  • As per agreement
  • According to seniority
Which of the following statement is true
  • A firm is liable for wrong acts of a partner
  • An unregistered firm is an illegal organization
  • Sharing of profit or loss is a conclusive evidence of existence of a partnership
  • A person can be admitted as a partner with the consent of majority of persons
An act of the partner is ___________ upon other partners.
  • Binding
  • Optional
  • Binding upon active partner only
  • Binding upon dormant partner only
Application for rectification of mistake in the documents or the Register of firms shall be made by _________________.
  • Any one partner or his agent
  • Majority of partners or their agent
  • All working partner or their agents
  • All the partners or their agents
On death of a partner, the representative of the decease partners are entitled to share-profit from.......
  • Beginning of the financial year up to the date of death
  • From date of death to the date of finalization of A/c
  • For the full year
  • For six months
A partnership firm after exceeding the maximum limit of partners becomes a/an.
  • Corporate body
  • Illegal association of persons
  • Banned entity
  • Co-operative body
Which of these is not an essential element of a partnership
  • Holding a valid Indian passport
  • An agreement
  • Existence of business
  • Sharing of profit
Registrar of firm under section $$57$$ of the Partnership Act is a __________.
  • Honorary post
  • Public servant
  • Central Government officer
  • Trade representative
The amount due to deceased partner is paid to his...........
  • Friends
  • Wife
  • Executor
  • His father
_________ is empowered to grant exemption from application of Chapter VII of the Partnership Act.
  • Central Government
  • State Government
  • Local body
  • State Assembly
Court can order dissolution of a firm on the grounds other than _______
  • Misconduct
  • Superannuation of a partner
  • Incapacity of partner
  • Continued losses
Indian Partnership Act came into force with effect from _____
  • 1-1-1932
  • 1-4-1932
  • 1-7-1932
  • 1-10-1932
Who are the owners of a company
  • Promoters
  • Board of directors
  • Chairman of the Company
  • Shareholders
Which of the following acts are outside the implied authority of a partner?
  • Take payment of sales proceed
  • To engage staff for firm
  • Purchase and sale of goods in the name of the firm
  • Acquire immovable property on behalf of the firm
A minor can do which of the following thing......
  • Plead minority
  • Can act an agent
  • Enter contract of apprenticeship
  • All the three
Partnership contract is a subject matter of......
  • Union list
  • State list
  • Concurrent list
  • All the three
An admission or report made by a partner concerning the affairs of the firm is evidence against the firm only when ___________.
  • it is made in the ordinary course of business
  • it is made with the knowledge of the all partners
  • it is made with the connivance of remaining partners
  • it is made with the approval of all the partners
An unregistered firm cannot file a suit against any _________.
  • partners
  • retired partner
  • third party
  • all the three
Public notice of dissolution of a firm is given by....
  • Managing partner
  • Active partner
  • Legal advisor of the firm
  • Any partner
A company pays dividend on its....
  • Paid up value of share capital
  • Called up value of share capital
  • Subscribed capital
  • Issued capital
Liability of a partner is..............
  • Limited
  • Unlimited
  • Limited to the share capital only
  • Depends on the provisions in the partnership deed
Tick mark the correct answer.
The company auditor has a right of access to.
  • The company's books of costing
  • The books of account and vouchers
  • The statutory and statistical books
  • All the above
A retiring partner is not liable to any 3rd party in which of the following circumstances
  • Who deals with the firm without knowing that he was a partner
  • Who deals with the firm fully knowing that he was not a partner
  • Who does not know about the partners particulars
  • Who is strange to the contract
Tick the correct statement
  • No public notice is required at the time of death of a partner
  • A firm is compulsorily dissolved upon death of a partner
  • If no public notice is given estate of the deceased partner is liable for debts of the firm
  • A firm cannot carry on its business after death of a partner
A partnership firm can be formed with a minimum share capital of
  • Rs. 100,000
  • Rs. 51,000
  • Rs. 500,000
  • No such limit prescribed
Which of these partner does not contribute capital in the firm. 
  • Nominal partner
  • Active partner
  • Sleeping partner
  • All the three
An insolvent partner ceases to be a partner of firm......
  • On the date on which order of adjudication is made
  • On dissolution of the firm
  • 30 days after dissolution f the firm
  • 30 days from the date of adjudication order
Which of these rights are available to a transferee under the partnership Act.
  • to inspect books of account
  • to interfere in firms day to day business
  • to transfer immovable property of the firm in his name.
  • to receive share of assets to which the transferor is entitled at the time of dissolution of the firm.
Company is a/an ______ association of persons
  • voluntary
  • compulsory
  • legal
  • chance
A person is liable as a partner of a firm on the principle of holding out where he....
  • declare himself to be a partner of the firm
  • represent himself to be a partner of the firm
  • knowingly permit others to represent him as a partner.
  • all the cases
As per the Companies Act, what is the maximum number of directors a public company can have?
  • Four
  • Ten
  • Fifty
  • No limit is prescribed
Subject to the contract between the partners the property of the firm can be held or used _______
  • For the common benefit of the partners
  • Exclusively for the purpose of firms business
  • For payment of liability of the firm
  • All the three
According to Partnership Act, every partner of the firm is a/an ........ of each other.
  • Friend
  • Agent
  • Brother
  • Relative
What is the real test of existence of a Partnership ________
  • mutual agency relationship
  • sharing of profit and loss
  • existence of business
  • all the three
A partners current capital a/c can have-
  • Debit balance only
  • Credit balance only
  • Debit or credit balance
  • No balance at all
Which of these rights is/are available to a partner in a partnership firm 
  • To transfer his share
  • To demand partition of property
  • Inheritance of property
  • Take part in business
Office work is likely to be found concentrated in a _____organisation.
  • Functional
  • Centralised
  • Decentralised
  • Bureaucratic
Perpetuity and separate legal entity are the two most important distinctive features of
  • Sole Proprietorship from business
  • Partnership
  • Company
  • Joint Hindu Family Firm
Non-profit organisation are also one of the type of business.
  • True
  • False
XYZ partnership firm is a partnership firm between A and B. C posed that he is a partner in XYZ and earned profits from the market. C will be regarded as ______________.
  • holding out partner
  • dormant partner
  • nominal partner
  • none of the above
Which of the following statements is true?
  • Two or more companies cannot enter into a contract of partnership
  • Two or more partnership firms can enter into a new contract of partnership
  • A married woman can be a partner of her husband
  • Two or more Joint Hindu Families cannot enter into a contract of partnership
Retiring Partner continues to be liable for acts of the Firm done __________.
  • upto the date of admission of a new Partner.
  • upto the date of giving public notice of retirement.
  • upto the close of the financial year in which he retires.
  • all of the above.
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Practice Class 11 Commerce Business Studies Quiz Questions and Answers