CBSE Questions for Class 11 Commerce Business Studies Forms Of Business Organisation Quiz 10 - MCQExams.com

Which of the following is not a right of partner?
  • Every partner has a right to continue in the partnership and not to be expelled from it
  • A partner has power to act in an emergency for protecting the firm from loss
  • Every partner is entitled to share in the profits equally
  • Every partner is entitled to the introduction of a new partner into the firm without consent other partner
Subject to contract between the partners, for taking part in the conduct of the business, a partner is _________.
  • Not entitled to receive any remuneration
  • Entitled to reasonable remuneration
  • Entitled to remuneration based on profits
  • Entitled to remuneration in the ratio of their capital
In good faith and based on the contract between partners, a partner may be expelled from the firm by ______________.
  • Unanimous consent of all the partners
  • Majority of the partners
  • Any of the working partners
  • Any of the dormant partners
Failure by a minor to give public notice within $$6$$ months will have the following effect ___________.
  • The partnership firm stands dissolved
  • Minor automatically becomes partner
  • Minor automatically ceases to be a partner
  • The partnership becomes an illegal association
A and B entered into an agreement to carry on a business of manufacturing and selling toys. Each one of them contributed Rs. $$35$$ lakhs as their capital with a condition that A and B will share the profits equally, but the loss, if any is to be borne by A alone. Referring to the provisions of the Indian Partnership Act, $$1932$$ decide whether there exists a partnership between A and B.
  • There is no partnership between A and B
  • A is sub-partner of B
  • There is partnership by holding out
  • There is partnership between A and B. A is partner in profit only
For admitting a minor into the benefits of the partnership, which of the following is required?
  • Consent of majority partners
  • Consent of parent or guardian
  • Consent of all the partners
  • Consent of $$3/4$$th partners
Every partner is bound to indemnify the firm for any loss caused by ________ in the conduct of the business.
  • Fraud
  • Misrepresentation
  • Mistake
  • Undue influence
Which of the following is NOT covered by general duties of partners?
  • To carry on the business of the firm to the greatest common advantage of the firm
  • To be just and faithful to each other
  • To arrange for audit of accounts of the firm
  • To keep and render true, proper and correct accounts of the partnership
Handloom Societies like APPCO, Bayanika, Haryana Handloom, etc., are examples of ____________.
  • Producers Co-operative Societies
  • Co-operative Marketing Societies
  • Co-operative Credit Societies
  • Consumers Co-operative Societies
Every partner is bound to carry on the business of the firm _________.
  • To the advantage of the working partner
  • For reasonable advantage
  • For the advantage of society
  • To the greatest common advantage
To bind the firm under implied authority, the act must be done in the ________ of carrying on the firm's business.
  • Regular way
  • Usual way
  • Routine way
  • Extraordinary way
In the absence of an agreement to the contrary, every partner is bound to share losses ______________.
  • Equally
  • In proportion to capital
  • In proportion to their private assets
  • $$50\%$$ loss equally and balance $$50\%$$ in their capital ratio
ABC & Co., a firm consists of three partners A, B and C having one-third share each in the firm. According to A and B, the activities of C are not in the interest of the partnership and thus want to expel C from the firm. Advise A and B whether they can do so ___________.
  • Yes
  • No
  • A & B have to retire from the firm
  • Yes, but subject to permission of C
Property of the firm shall be held by use of the partners __________.
  • Exclusively for business purposes
  • For business purposes as well as private purposes of the partners
  • For the private purposes of the partners
  • For charitable purposes
For loss caused to the firm by his fraud in the conduct of the business, every partner shall __________.
  • Indemnify the firm
  • Indemnify the other partner
  • Indemnify all the retiring partners
  • Indemnify only to working partners
Every partner is bound to attend _________ to his duties, in the conduct of the business.
  • Systematically
  • Diligently
  • Sincerely
  • Effectively
Every partner is an agent of the firm and of other partners for __________________.
  • The purpose of the management of the firm
  • The purpose of other partners
  • The purpose of liability to third parties
  • The purpose of the business of the firm
Identify which of the following statement is true and which is false.
P. Registration of firm does not create partnership, but is only the evidence of existence of partnership.
Q. A partnership firm has to be compulsorily registered in order to commence its business.
R. Registration of firm may be effected at any time during the continuance of partnership.
Select the correct answer from the options given.
  • P-True, Q-False, R-True
  • P-False, Q-True, R-True
  • P-True, Q-True, R-False
  • P-False, Q-False, R-True
The implied authority of any partner may be _________________.
  • Restricted by contract between the partners
  • Extended by contract between the partners
  • Either extended or restricted by contract between the partners
  • Can be extended but not restricted by contract between the partners
Upon dissolution, which is the proper order for application of the Firm's assets?
I. Payment of partners loan
II. In paying the debts of the firm to third parties
III. Distribution of surplus to partners in profit sharing ratio
IV. Payment of partners capital
Select the correct answer from the options given.
  • I, IV, III, II
  • II, I, IV, III
  • II, I, III, IV
  • I, II, III, IV
Application for registration of firms should be signed by _____________.
  • All the partners or their agents
  • Majority partners or their agents
  • All working partners or their agents
  • All minor partners
Which of the following is NOT required to be given in an application for registration of a firm?
  • Firm name
  • Date when each partner joined the firm
  • Date of birth of each partner of the firm
  • Duration of the firm
Firm may be dissolved :
A. With the consent of all the partners.
B. In accordance with the contract between them.
Select the correct the answer from the options given.
  • Neither A nor B
  • B only
  • Either A or B
  • A only
N & Z are partners in a firm dealing in stationery. N placed order in the firm's name and on the firm's letter pad for $$10$$ bags of wheat to be supplied at his residence _______________.
  • The firm is not liable for N's act
  • The firm is liable for N's act
  • A has acted within his implied authority
  • A has acted within his implied authority and hence firm is liable to pay
Who can give Public Notice of retirement of partner?
  • All the partners of the reconstituted firm
  • By the retiring partner or any partner of the reconstituted firm
  • Any partner of the reconstituted firm
  • Retiring partner only
_____________ are formed by small producers and manufacturers who find it difficult to sell their products individually.
  • Producers Co-operative Societies
  • Co-operative Marketing Societies
  • Housing Co-operative Societies
  • Consumers Co-operative Societies
Persons who have entered into partnership with one another are individually known as.
  • Co-owner's
  • Firm
  • Partnership
  • Partner
The co-operative society follows the principles of "_____________" . 
  • Cash and Credit
  • Cash and Carry
  • Credit and Carry
  • Cash and Carry Forward
Which of the following sentence in relation to "Cooperative Societies" are correct?
(1) There should be minimum of 20 members to for cooperative society but there is no maximum limit for the membership.
(2) According to Indian Cooperative Societies Act,1912,each society must transfer at least one-third of its profits to general reserve.
(3) Cooperative Societies may distribute maximum up to 90 per cent of its surplus as dividend to its members and can spent another 10 per cent for the welfare of the members.
  • (1) only
  • (1) & (2) only
  • (3) only
  • (2) & (3) only
The number of partners in firm carrying an banking business should not exceed  ________.
  • $$25$$
  • $$20$$
  • $$50$$
  • $$100$$
If two or more persons have made a joint promise, they are known as.
  • Joint venturer
  • Joint promisee
  • Joint partners
  • Joint promisor
Sole traders operate mostly on a small-scale basis and their number is large. Identify the particular advantages.
  • Ease of formation and closure
  • Secrecy of information
  • Social utility
  • All of the above
As the business flourishes, a sole proprietorship might not get a chance to decrease costs as it lacks the economies of large scale business.
  • True
  • False
_____________ are formed to protect the interest of general consumers by making consumer goods available at a reasonable price.
  • Producers co-operative societies
  • Co-operative marking societies
  • Housing co-operative societies
  • Consumers' co-operative societies
The main objective(s) of co-operative society is/are _______________.
  • Earning lot of profit
  • Competition with private sectors enterprises instead of mutual help
  • Self help in place of dependence
  • All of above
The fate of sole proprietorship is connected to the sole proprietor. What does this convey about the sole proprietorship?
  • Unlimited liability
  • Uncertain life
  • Limited managerial ability
  • Lack of economies of scale
____________ are formed by small producers and manufacturers who find it difficult to sell their products individually.
  • Producers' co-operative societies
  • Co-operative marking societies
  • Housing co-operative societies
  • Consumers co-operative societies
_____________ are formed to provide financial support to the members.
  • Producers' co-operative societies
  • Co-operative marking societies
  • Co-operative credit societies
  • Consumers' co-operative societies
Matrix organization combines ________________
  • Functional departmentation with line and staff organization
  • Functional departmentation with product or project organization
  • Product or project organization with informal organization
  • informal organization with Functional departmentation
Which of the following is/are disadvantage of a company form of organization?
  • The window dressing of the prospectus often misleads the investors who are later on exploited by the promoters.
  • Lack of secrecy
  • Stock exchange speculation
  • All of above
In a HUF business, in the event of death of any of the co-parcener, his wife can claim share of profit.
  • False
  • True
  • Partly true
  • None of above
Any person can become member of HUF.
  • False
  • True
  • Partly true
  • None of above
Which of the following is/are features of KARTA in HUF form of business?
  • Karta is the eldest male member of the family.
  • Karta is the custodian of the income and assets of the HUF.
  • Karta is to manage the HUF property.
  • All of above
No stranger can ever be qualified to be a karta, but an adopted son who is the eldest in the family can be qualified.
  • False
  • True
  • Partly true
  • None of above
In a Hindu Undivided Family business only the _____ get a share in the business by virtue of their being part of the family.
  • Female members
  • Male members
  • Both (a) & (b)
  • Either (a) or (b)
In Hindu Undivided Family (HUF) from of business all the members of a Hindu undivided family own the business _______________.
  • Individually
  • Separately
  • Jointly
  • With society
____________ are formed to provide residential houses to members.
  • Producers co-operative societies
  • Co-operative marking societies
  • Housing co-operative societies
  • Consumers' co-operative societies
In a HUF business all co-parceners have equal share in the profits of the business.
  • False
  • True
  • Partly true
  • None of above
The liability of each member of the HUF business is _____________.
  • Limited to the extent of share of KART
  • Limited to the extent of his share in the business
  • Unlimited
  • Limited to the extent as may be determined by relatives
In a HUF business, the liability of the karta is _______________.
  • Limited to the extent of share of co-parceners
  • Limited to the extent as may be determined by relatives
  • Unlimited
  • (a) or (b)
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