CBSE Questions for Class 11 Commerce Business Studies Forms Of Business Organisation Quiz 6 - MCQExams.com

True Test of existence of partnership is _________.
  • mutual agency
  • sharing of profits
  • sharing of osses
  • all of the above
A partner who does not get actively involved in business is a  _________ partner.
  • active
  • sleeping or dormant
  • nominal
  • sub-partner
Agreement to share profits in a partnership firm ________.
  • must be coupled with an agreement to share losses
  • is same as agreement to share losses
  • implies an agreement to share losses
  • does not necessarily mean an agreement to share losses.
In which of the following cases, a partnership firm may be dissolved?
X. On the death of a partner.
Y. On the insolvency of a partner
Z. On the retirement of a partner
Correct option is _______________.
  • X and Y
  • X and ?-
  • Y and Z
  • X, Y and Z
Person doing business solely is known as ________.
  • single person
  • sole proprietor
  • company
  • partner
A Company Secretary _____________________.
  • has nothing to do with the directors, of the company
  • is never in touch with any government department
  • occupies an important place in a corporate setup
  • does not have to correspond with the investors
Statement A : Easy to form is advantage of sole proprietorship form of business.
Statement B: Easy to wind up is advantage of sole proprietorship form of business.
  • Statement A is true but Statement B is false
  • Statement A is false but Statement B is true
  • Both Statement A and B are true
  • Both Statement A and B are false
Sole proprietorship form is most suitable ___________.
  • Where the nature of business is simple.
  • Where manual skill is required.
  • Where the market for the product is small and local.
  • All of above
The business started by a group of persons can be ________.
  • Company
  • Hindu Undivided Family
  • Partnership
  • Any of the above
______________ business is a form of business organisation found only in India.
  • The company
  • The Hindu Undivided Family (HUF)
  • The partnership
  • The trust
Which of following form of business is the most simple and common in our country?
  • Statuary corporations
  • Sole proprietorship
  • Company
  • All of above
Which of the following statement is/are TRUE and which is/are FALSE?
I. Sole proprietorship business includes only shopkeepers.
II. In sole proprietorship business the proprietor has full control over each and every activity of the business. 
III. The sole proprietor is always in a position to maintain good personal contact with the customers and employees.

Select the correct answer from the options given below:
  • I - False

    II - False

    III - True
  • I - False

    II - True

    III - True
  • I - True

    II - False

    III - True
  • I - False

    II - True

    III - False
Sole proprietorship form is not suitable _______________.
  • Where capital requirement is large and risk involvement is heavy.
  • Where manual skill is required.
  • Where the market for the product is small and local.
  • All of above.
Which of following is advantages (A) and which is disadvantage (D) of sole proprietorship form of business?
(i) Maintenance of business secrets
(ii) Limited capital
(iii) Quick decision and prompt action
(iv) Lack of continuity
Select the correct answer from the options given below.
  • i - A

    ii - A

    iii - A

    iv - A
  • i - D

    ii - D

    iii - D

    iv - D
  • i - A

    ii - D

    iii - A

    iv - D
  • i - D

    ii - A

    iii - D

    iv - A
Characteristics of sole proprietorship form of business is/are :
1. Single owner
2. Unlimited liability
3. Control by partner
4. No sharing of profit and loss
  • 1 and 4 only
  • 2, 3, 4
  • 2 and 1 only
  • 4, 2 and 1
Sole proprietorship form is most suitable ____________.
  • Where the market for the product is small and local.
  • Where customers are given personal attention, according to their personal tastes and preferences.
  • Where capital requirement is small and risk involvement is not heavy.
  • All of above.
A HUF business can be dissolved any time ___________________.
  • Through mutual agreement between members
  • By partition
  • Either A or B
  • Only through order of court
Identify which statement is true and which is false?
1. Any person can become member of HUF.
In a HUF business, in the event of death of any of the co-parcener, his wife can claim share of profit.
In a HUF business, the liability of the karta is Unlimited.
Select the correct answer from the options given below.
  • 2 and 3
  • 1 and 3
  • 3 and 2
  • None of the above
Member in HUF other than KARTA are called as _____________.
  • Co-parceners
  • Co-partner
  • Co-manager
  • Co-karta
A minimum of ____________ are required to start a partnership business.
  • Five persons
  • Four persons
  • Three persons
  • Two persons
Statement X : Karta is the custodian of the income and assets of the HUF
Statement Y: An adopted son who is the eldest in the family can be qualified to be a Karta of HUF.
  • X is true but Y is false
  • Y is true but X is false
  • Both X and Y are false
  • Both X and Y are true
In HUF form of business all the members of a hindu undivided family own the business ________.
  • Individually
  • Separately
  • Jointly
  • With society
Which of the following can be treated as disadvantage of HUF form of business?
  • HUF business has generally limited financial and managerial resource.
  • There is always a lack of motivation among the members to work hard.
  • Since the karta has absolute freedom to manage the business, there is scope for him to misuse it for his personal gains.
  • All of above
Which of the following can be treated as advantage of HUF form of business?
I. The liability of the co-parceners is limited, except for that of karta.
II. A HUF business is not affected by the insolvency or death of karta.
Select the correct answer from the options given below.
  • I only
  • II only
  • Both I and II
  • Neither I nor II
How partners are liable for the debts and obligations of the firm?
(i) Jointly
(ii) Severally
Select the correct answer from the options given below:
  • i only
  • ii only
  • Both i and ii
  • Neither i nor ii
Which of the following is/are disadvantage of partnership firm?
  • Unlimited Liability of partners.
  • The duration of the partnership is always uncertain.
  • The partners should be like minded, have a common objective, be large hearted, have a cool temperament should not unnecessarily cause friction and confusion among the partners.
  • All of above
Characteristics of a company_________.
  • Artificial legal person
  • Incorporated body
  • Capital divisible into shares
  • All of above
The company can ___________.
  • Enter into contracts
  • Borrow money
  • Open banking account in its name
  • All of above
Handloom societies like APPCO, Bayanika, Haryana handloom etc are examples of
  • Producers' co-operative societies
  • Co-operative marketing societies
  • Co-operative credit societies
  • Consumers's co-operative societies
If the partnership agreement is in __________ it is known as a "Partnership Deed".
  • Verbal
  • Written
  • Implied
  • Verbal, written or implied
Feature(s) of a public corporation is/are ___________________________.
  • It is genearlly not exempt from the rigid rules applicable to the expenditure of public funds.
  • A public Corporation is managed by board of directors who are appointed by the public financial institutions.
  • The primary motive of the corporation is public service rather than private profits.
  • All of above.
Which of the following is / are disadvantage of 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
Which of the following organization is formed to provide residential houses to members?
  • Producer's co-operative societies
  • Co-operative marketing societies
  • Housing co-operative societies
  • Consumer's co-operative societies
According to Indian Cooperative Societies Act, 1912, each society must transfer at least ___ of its profits to general reserve.
  • One third
  • One fourth
  • One half
  • One tenth
The co-operative society has perpetual succession because it is not affected due to ________________.
  • Death of any member
  • Insolvency of any member
  • Lunacy of any member
  • Any of above
The advantage of co-operative society is/are _________________________.
  • It is very expensive and difficult to form co-operative society as compared to joint stock company.
  • The co-operative societies work on the principle of open membership.
  • "One share one vote" is the rule and thus members having maximum share can dominate the management.
  • All of above
Common examples for non profit corporations are __________________.
  • Educations corporations
  • Charitable corporations
  • Religious corporations
  • All of above
Which of the following is/are advantage of LLP?
  • Perpetual existence
  • Internationally renowned from of business in comparison to Company
  • No requirement of minimum capital contribution
  • All of above
Which of the following is not characteristic of LLP?
  • A legal entity having perpetual succession, separate from its partners.
  • The mutual rights and duties of partners of an LLP inter se and those of the LLP and its partners shall be governed by an agreement between partners
  • Each partner is an equal member in a LLP company.
  • Easy to establish than sole proprietorship.
The right choice of the form of the business depends upon ______________.
I - Nature of business
II - Volume of business
III - Area of operation
Select the correct answer from the options given below:
  • I and II
  • III and II
  • I and III
  • I, II and III
Managerial Personnel 
Any corporate body or firm can be appointed as director of the company. This statement is
  • False
  • True
  • Partly true
  • Partly false
Village Service Co-operative Society and Urban Co-operative Banks are examples of ________________.
  • Producers' co-operative societies
  • Co-operative marketing societies
  • Co-operative credit societies
  • Consumer's co-operative societies
In case of co-operative society, no member detects the terms and conditions of the functioning because "_________" is the thumb rule.
  • One man two vote
  • One man one vote
  • Two man one vote
  • No man no vote
A partnership  deed is a _________________.
  • involuntary association
  • voluntary association
  • beneficiary association
  • unavoidable association
Hindu Undivided family is formed or created in accordance with the __________.
  • Indian Companies Act
  • Indian Partnership Act
  • Hindu Law
  • None of the above
The following is the advantage of a company ___________________.
  • Benefits of large scale production
  • Bold management
  • Full legal cover
  • All of the above
When firm successfully engages in mergers and acquisitions it is called _________.
  • Expansion
  • Growth and expansion
  • Business planning
  • Modernization
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 business in which only a single owner arranges the capital is ____________.
  • Partnership
  • Hindu joint family business
  • Sole proprietorship
  • NGOs
The partners enter into partnership through an agreement which may be _________.
(I)    Verbal
(II)   Written 
(III)  Implied 
 The correct answer is :-
  • (II) only
  • (I) or (II)
  • (II) or (III)
  • (I) or (II) or (III)
0:0:1


Answered Not Answered Not Visited Correct : 0 Incorrect : 0

Practice Class 11 Commerce Business Studies Quiz Questions and Answers