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CBSE Questions for Class 11 Commerce Business Studies Forms Of Business Organisation Quiz 3 - MCQExams.com
CBSE
Class 11 Commerce Business Studies
Forms Of Business Organisation
Quiz 3
Another name for MATRIX organisation is _____________.
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Flexible organisation
0%
Geographic organisation
0%
Project organisation
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None of the above
Explanation
Option C is the correct answer.
If a network of interpersonal relationship that arise when people associate with each other is an informal organization, then find out which of the following is not an informal organization?
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The "machine shop" group
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Customers' group
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The "sixth floor" group
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The "Friday evening bowling" gang
Explanation
Option b is the correct answer.
The Structure in which there is separation of ownership and management is called ______________.
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Sole proprietorship
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Partnership
0%
Company
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All business organisations
Explanation
Company is the form of business organisation in which there is a separation of ownership and management. Company has a separate legal entity from its members. Management professionals of the firm are not considered as the owners of the firm.
A partner whose association with the firm is unknown to the general public is called _____________.
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Active partner
0%
Sleeping partner
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Nominal partner
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Secret partner
Explanation
Secret partner is the partner of the firm whose association is unknown to the general public but he takes part in the decision making and management of the business firm.
A company comes into existence only after its ____________.
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Promotion
0%
Formation
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Registration
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Operation
Explanation
Registered or Incorporated
Companies
These
companies
are formed/incorporated under
the companies
act passed by
the
government. These
companies
come
into existence only after
these are registered under
the
act and
the
certificate of incorporation is passed by
the
Registrar of
companies
.
Profits do not have to be shared. This statement is true in the case of ______________.
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Partnership
0%
Joint Hindu Family business
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Sole proprietorship
0%
Company
Explanation
In sole proprietorship, a proprietor is the only owner of the business and manages the business single-handedly and therefore, he is not required to share its profit with anyone.
The liability of shareholders in a Joint Stock Company is __________.
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0%
limited
0%
unlimited
0%
constant
0%
none of these
Explanation
The liability of the members in a joint stock company is limited while company itself has unlimited liability since it has its existence in the eyes of law and is considered as an artificial person and members are not required to pay debts from their personal assets.
Balu, Lalu and Kalu are partners in a firm. They admit Malu as a minor partner to the benefit of partnership. Within 6 months of his attaining majority, he fails to give a public notice of his intention that he has become a fullfledged partner. On the other hand all other partners refuse to take him as a partner. In this case, which of the following statement is correct ?
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Malu is not liable as a partner
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Malu can become a partner
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Public notice is not essential for a minor partner on attaining majority
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A suit may be filed by other partners for dissolution of the firm
Explanation
A Minor can be admitted into the partnership with the consent of all the existing for the benefits of a partnership. On attaining majority, the minor must decide within 6 months whether he would like to become a partner in the firm and give public notice of his decision if he remains silent and fails to give public notice, it will be implied that he has elected to be a partner in the firm.
Hence option (B) is the correct answer.
The capital of a company is divided into number of parts each one of which is called ___________
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Dividend
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Profit
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Interest
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Share
Explanation
Share refers to a part of capital of a company which is divided among a number of people. People who purchase the shares of a company are known as the shareholders and are also considered as the owners of a company.
The head of the Joint Hindu family business is called ____________.
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Proprietor
0%
Director
0%
Karta
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Manager
Explanation
The head of the joint hindu family business is known as Karta. Karta is usually the senior most male member of the joint family and he has the power to control the whole business.
Which of the following statements is incorrect ?
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The Partnership Act, 1932 does not prescribes the maximum number of partners in a firm
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An agreement to carry on business in future cannot be the basis of partnership
0%
A permanent business undertaking is not essential for the formation of partnership
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Members of H.U.F. who carry on business and shares profits among them are also treated as partners
Explanation
The statement of option D is not correct because m
embers of H.U.F. who carry on business and share profits among them can not be treated as partners.
HUF means
Hindu Undivided Family, a Hindu
family can come together and form a HUF because it cannot be created by o
ne person, it can only be formed by a family. It
consists of a common ancestor and all of his lineal descendants, including their wives and unmarried daughters.
Thus the correct answer is D.
Which of the following is not an essential characteristic of a company?
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Company is an artificial person created by law
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Company has a separate legal entity
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Company has not a perpetual succession
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Company has a common seal
Explanation
A company is a separate legal entity different from its members or shareholders. It is an artificial person created by law that can enter into an agreement in its own capacity, can sue and also be sued. It also has a common seal. As a company is an artificial person and not a natural person, it has a perpetual succession. Death of any member or shareholder does not affect its existence.
Thus, the correct answer is C.
Which of the following is not a feature of a cooperative society?
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Voluntary membership
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Limited liability
0%
Unlimited liability
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Elected managing committee takes major decisions
Explanation
Members of the cooperative society have a limited liability i.e. their personal assets cannot be used to pay off the debts of society as it is a democratic form of business.
Non-profit Association means an institution formed for making reasonable profit.
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0%
True
0%
False
Explanation
(i) Non-profit association is a voluntary association established for conducting social, cultural educational or economic activities.
(ii) Such associations work for the benefits of the members and for the society.
(iii) These associations are service-oriented, which promote welfare of the society.
(iv) Rotary clubs, social clubs, sports club, educational institutions, recreation clubs, cultural club, chamber of commerce, etc.
A sports club is a co-operative society.
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0%
True
0%
False
Explanation
(i) Co-operative society is a voluntary organisation registered under Co-operative Societies Act.
(ii) It mainly aims at protecting and safeguarding common interest of its members and public.
(iii) It also provides for them various service and amenities.
(iv) Such organizations have to add "co-operative" to their names. Eg. Co-operative Bank, Consumer Cooperative store, Co-operative Housing Society etc.
(v) Therefore a sports club cannot be a co-operative society, its a recreation centre, where various sports are introduced and training is given to players.
There is no Government Control and Supervision over the working of Joint Stock Company.
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0%
True
0%
False
Explanation
Government has a control and supervision over the working of Joint stock company. It needs to keep an eye on the workings to know that malpractices are not being done and company is filing the income tax returns regularly, and production takes place without affecting the environment.
The liability of the members in a Joint Stock Company is __________.
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0%
restricted
0%
limited
0%
unlimited
0%
constant
Explanation
The liability of the members in a joint stock company is limited while company itself has unlimited liability since it has its existence in the eyes of law and is considered as an artificial person.
A Joint Stock Company has ___________life.
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short
0%
limited
0%
continuous
0%
none of these
Explanation
A joint stock company has a continuous life. It implies death, insanity, insolvency or retirement of any of its shareholders, owners, board of directors or employees cannot lead to the closure of company. Company can run for a longer period of time.
A public company need to have minimum ___________ members.
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0%
two
0%
five
0%
seven
0%
ten
Explanation
Under the Companies Act 2013, minimum 7 members are required to start a public company.
A co-operative society must have minimum ______ members.
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0%
50
0%
20
0%
10
0%
15
Explanation
To form a cooperative society, minimum 10 people needs to voluntarily come together to meet their economic, social and cultural needs through a democratically controlled enterprise.
A Joint Stock Company is managed by __________.
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Shareholders
0%
Secretary
0%
Board of Directors
0%
Single Owner
Explanation
A joint stock company is managed by the board of directors who are elected by the shareholders. All the shareholders are entitled to vote in the decision making process. Board of directors have powers in the management of the business.
A Joint Stock Company is _______ person.
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natural
0%
an artificial
0%
imaginary
0%
None of these
Explanation
A joint stock company has an independent status i.e. it has a separate legal entity from its members. It has an independent existence in the eyes of law and can also purchase and sell property in its own name.
A Joint Stock Company collects __________ capital.
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limited
0%
huge
0%
moderate
0%
small
Explanation
The joint stock company collects huge capital from public by dividing its capital in a small unit called shares and inviting subscription from general public on these shares. Holding these shares ensures dividend to the shareholders and provides them voting powers in the decision making process of the business.
A Joint Stock Company has independant________.
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survival
0%
legal status
0%
capital
0%
none of these
Explanation
A joint stock company has an independent status i.e. it is a separate legal entity from its members. It has an independent existence in the eyes of law and can also purchase and sell property in its own name.
Joint Stock Company enjoys _______status.
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no
0%
legal
0%
illegal
0%
regular
Explanation
A joint stock company has an independent status i.e. it has a separate legal entity from its members. It has an independent existence in the eyes of law and can also purchase and sell property in its own name.
An association established for promoting common economic interest of members is a Co-operative society.
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True
0%
False
Explanation
Cooperative society works for its members. In this, minimum 10 people needs to voluntarily come together to meet their economic, social and cultural interests through a democratically controlled enterprise.
Membership in Joint Hindu Family business is by ________only.
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birth
0%
agreement
0%
transfer of shares
0%
election
Explanation
Yes, it is true that membership in Joint Hindu Family business takes place only by birth. Outsider cannot become the member in the firm and also high managerial positions are always headed by the family members or with the persons having blood relations.
A Co-operative Society is a voluntary association.
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0%
True
0%
False
Explanation
To form a cooperative society, minimum 10 people need to voluntarily come together to meet their economic, social and cultural needs through a democratically controlled enterprise.
Sole trading concern is owned and managed by________person/persons.
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0%
one
0%
two
0%
five
0%
six
Explanation
A sole trading business is the oldest and simplest form of business organisation as in this kind of business, there is no chaos in the management as a person is single handedly working for the business and also he is the single receiver of profit earned.
A ___________ is the oldest and simplest form of business organisation.
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Partnership Firm
0%
Sole Trading Concern
0%
Joint Stock Company
0%
None of these
Explanation
A sole trading business is the oldest and simplest form of business organisation as in this kind of business, there is no chaos in the management as a person is single handedly working for the business and also he/she is the single receiver of profit earned.
A voluntary association of persons which required minimum ten major persons for its formation is a co-operative society.
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0%
True
0%
False
Explanation
To form a cooperative society, minimum 10 people needs to voluntarily come together to meet their economic, social and cultural needs through a democratically controlled enterprise.
Lions club is the example of ________ .
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Non-profit Association
0%
Co-operative Society
0%
Joint Stock Company
0%
None of these
Explanation
Lions club is formed to raise money for charitable purposes and for worthy cause. It comes under Non profit association as club does not focus on earning profit rather its main motto is "to serve".
The business organisation which enjoys a separate legal existence is a___________.
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0%
Partnership firm
0%
Joint stock company
0%
Government organisation
0%
None of these
Explanation
A joint stock company has an independent status i.e. it has a separate legal entity from its members. It has an independent existence in the eyes of law and can also purchase and sell property in its own name.
A person who purchases share of Joint Stock Company is called __________.
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Partner
0%
Proprietor
0%
Shareholder
0%
Promoter
Explanation
A person who purchases the shares of a company is known as Shareholder and they are also considered as the owners of Company. They are given dividends out of profits and are given voting powers in the decision making process of business.
The organisation, which is owned and managed by one person is a ________________.
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0%
Sole proprietorship
0%
Joint stock company
0%
Government company
0%
All of these
Explanation
In sole proprietorship, whole organisation is owned and managed by the single person, who is the owner of organisation. He is the sole bearer of all risks and profits associated with the business.
Fill in the blanks and rewrite the sentence:
The organisation which enjoys a separate legal status is a ___________.
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0%
Joint Stock Company
0%
Non-profit organisation
0%
Co-operative organisation
0%
Government organisation
Explanation
A joint stock company has an independent status i.e. it has a separate legal entity from its members. It has an independent existence in the eyes of law and can also purchase and sell property in its own name.
The Act which regulates the joint stock company is the __________.
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Companies Act, 1956
0%
Companies Act, 1958
0%
Companies Act, 1959
0%
Companies Act, 1962
Explanation
Earlier, the Act which regulated the Joint stock company is the Companies Act 1956. But this Act has been amended recently in the year 2013, known as Companies Act 2013.
The head of Joint Hindu Family firm is Karta.
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0%
True
0%
False
Explanation
The head of the joint hindu family business is known as Karta. Karta is usually the senior most male member of the joint family and he has the power to control the whole business.
Incorporation of a Joint Stock Company is compulsory.
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0%
True
0%
False
Explanation
Incorporation of a Joint stock company is compulsory. Without incorporation, all the contracts would be considered void in the eyes of law and operations of business cannot be carried out.
The business organisation, where there is a separation of ownership and management is a __________.
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0%
Joint stock company
0%
Family business
0%
Co-operative society
0%
Government organisation
Explanation
In joint stock company there is separation of ownership and management and it involves placing the management of the firm under the responsibility of professionals who are not its owners. Owners of a company may include shareholders, directors, government entities and initial founders.
An association of individuals for profit, having its capital divided into a large number of shares is a _______.
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0%
joint stock company
0%
co-operative organisation
0%
non-profit organisation
0%
none of the above
Explanation
The joint stock company collects huge capital from public by dividing its capital in a small unit called shares and inviting subscription from general public on these shares. Holding these shares ensures dividend to the shareholders and provides them voting powers in the decision making process of the business.
A Joint stock company has a _______ life/existence.
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0%
continuous
0%
constant
0%
certain
0%
flexible
Explanation
One of the feature of joint stock company is that it has a perpetual existence that implies death or insanity of any of its member, board of directors, employees or shareholder cannot lead to the closure of company. It has a long business life i.e. cannot be easily diluted.
The form of commercial organisation suitable to carry on large scale business is called ______________.
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Joint stock company
0%
Co-operative society
0%
Partnership firm
0%
None of these
Explanation
The large scale business can be easily carried out by Joint stock company as capital can be easily accumulated by inviting subscriptions from the general public in the form of shares and companies have a long and stable life i.e. perpetual succession.
The members of Joint Hindu Family firm are known as coparceners.
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0%
True
0%
False
Explanation
The members of Joint Hindu family firm are known as Coparceners as members share equally with each other the inheritance of the estates or rights. Coparceners are usually the people born in the same family.
A business organisation registered under the Companies Act of 1956 is a _____ .
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0%
Partnership firm
0%
Sole proprietorship
0%
Joint stock company
0%
Government organisation
Explanation
A business organisation registered under the Companies act 1956 is a Joint stock company. All the companies have to register itself with registrars under the Companies act 1956. It has been recently amended in the year 2013.
Association which is formed for welfare of the society is co-operative society.
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0%
True
0%
False
Explanation
A cooperative society is the voluntary association of people to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
The managing body of a co-operative society is the managing committee.
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0%
True
0%
False
Explanation
The managing body of a cooperative society is known as managing committee. This committee maintains a record of the accounts of society. It keeps a check on the records of its members and their meetings, economic, cultural and social needs.
An association which is formed to promote art, cultural activities, etc is a ________ .
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0%
Joint stock company
0%
Sole proprietorship
0%
Non-profit Association
0%
None of these
Explanation
An association which is formed to promote art, cultural activities rather than focusing on earning profits is known as Non-profit association. For example: Rotary club, as it does not aim at earning profits rather focuses on social welfare.
___________ is an association which does not aim at profit making.
Report Question
0%
Non-profit Association
0%
Joint stock company
0%
Co-operative society
0%
Government organisation
Explanation
Non-Profit association works only for the social welfare and to encourage high ethical behavior without focusing on earning profit. Its main focus is to maximize the benefit of members involved.
The managing body of a Joint Stock Company is the ________ .
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0%
Directors
0%
Board of Directors
0%
Shareholders
0%
None of these
Explanation
A joint stock company is managed by the board of directors who are elected by the shareholders. All the shareholders are entitled to vote in the decision making process. Board of directors holds company's shares in a huge lot and have powers in the management of the business.
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