CBSE Questions for Class 11 Commerce Business Studies Forms Of Business Organisation Quiz 7 - MCQExams.com

Partnership is an agreement between _______________.
  • entities in a business
  • two people
  • organisations
  • friends
Every business enterprise is an independent undertaking.
  • True
  • False
  • Partly True
  • Partly False
____________ is the most flexible kind of business Organisation.
  • Sole Proprietorship
  • Partnership
  • Co-Operatives and Trusts
  • Limited Liability Partnership
Which of the following are a form of a business enterprise?
  • Partnership
  • Cooperative
  • Joint hindu family
  • All of the above
Following is not a characteristic of sole proprietorship business _______________.
  • Easy to form and wind up
  • Difficult to maintain secrets
  • Direct motivation
  • None of the above
Profit sharing among members in an HUF is done  _______.
  • members status in family
  • amount of work done by a member
  • equally
  • according to the age of the member
The money contributed to the company by its members is its __________ and is known as the member's __________.
  • assets, share
  • profit, investment
  • capital, share
  • none of the above
Persons entering into partnership contract may be.
$$(1)$$ Natural persons
$$(2)$$ Artificial persons
Select the correct answer from the options given:
  • $$(1)$$ only
  • $$(2)$$ only
  • Combination of $$(1)$$ and $$(2)$$
  • $$(1)$$ or $$(2)$$ or combination of $$(1)$$ and $$(2)$$
The members of an HUF are also known as _______.
  • family
  • partners
  • co-parceners
  • none of the above
An HUF continues to exist even upon the death of the Karta.
  • Partly false
  • False
  • Partly true
  • True
Even a single partner may be called upon to pay the debts of a partnership firm.
  • Partly true
  • True
  • Partly false
  • False
The sole proprietorship form of business discourages self employment.
  • True
  • False
  • Partly true
  • Partly false
The risk of the sole proprietorship business is shared with the employees of the business _______________.
  • Partly true
  • True
  • Partly false
  • False
In HUF business, all the members own the business jointly.
  • Partly true
  • True
  • Partly false
  • False
The written agreement to enter into a partnership is known as _______.
  • partnership deed
  • partnership agreement
  • partnership contract
  • all of the above
The business affairs of an HUF is managed by _______.
  • managing director
  • parents of minors
  • karta
  • eldest male and female member of the family
What is the minimum number of members required to form a co-operative society?
  • $$5$$
  • $$7$$
  • $$10$$
  • $$15$$
The liability of a shareholder of a company is to the extent of ________.
  • face value of shares
  • unpaid value of shares
  • both
  • none of the above
One of the disadvantages of a company form of business is ________.
  • its full legal cover
  • recognized legal entity
  • stock exchange speculation
  • none of the above
The main objective of the co-operative society are ________.
  • rendering service rather than earning profit
  • mutual help instead of competition
  • self help in place of dependence
  • all of the above
The partners have a ___________ relationship.
  • family
  • principal and agent
  • business
  • none of the above
What is the maximum strength of HUF?
  • $$20$$
  • $$10$$
  • $$50$$
  • No limit
Which of the following is an advantage of HUF?
  • Favourable Credit Standing
  • Greater Management Ability
  • Profit Incentive
  • None of the above
The official signature of the company is known as ________.
  • company logo
  • company seal
  • common seal
  • common signature
Compared to licensing, franchising is a more advantageous entry mode because ________________________.
  • It generates economies of scale in marketing to international customers
  • It is low-risk and low-cost
  • It offers greater control
  • All the above
Which of the following is not the requirement in Partnership deed?
  • Capital contribution by each partner
  • Profit sharing
  • Total assets of the partner
  • Method of dissolution
Everything is an advantages of joint ventures except __________________.
  • The costs of a new project can be split between the companies involved
  • Manufacturing costs will be divided between the firms in the venture
  • Joint ventures between firms in different countries can create new market opportunities
  • Management of the joint venture will lead to disagreements
One of the hardships of a sole proprietorship is that _________________.
  • Capital is limited to owner's savings and bank loans
  • It has to complete too many registration fomalities
  • As they are government owned there is no profit motive
  • More tax is charged on them
The choice of an appropriate form of business organisation largely depends upon:
I. Ease of formation
II. Continuity and stability
III. Liability aspects.  
Correct option is __________.
  • I and II
  • II and III
  • I and III
  • I, II and III
The most suitable definition of a sole trader form of business organization is ____________________.
  • The business who manufacture only one product.
  • The business is owned by one person.
  • The firm has a single buyer.
  • There is a single seller is the industry.
A, B, C & D are partners A retires, B dies, the status of partnership _____________.
  • Remains unchanged
  • Comes to an end
  • Reconstituted
  • All of the above
Which form of business organisation has a separate legal entity?
  • Hindu Undivided Family (HUF)
  • Co-operative society
  • Partnership firm
  • Sole proprietorship
At the time when a new partner enters, Good will _________________________.
  • belongs to all partners, new and old
  • belongs only to the new partner who is going to be admitted.
  • belongs only to the old partner who have credited it
  • none of the above
Food co-operation of India is _______________.
  • A joint stock company
  • Company managed by department
  • Company established by special act of parliament or state assembly
  • None of the above
For the formation of the contract of sale of goods, there should be ________________.
  • two parties
  • one party
  • more than 2 parties
  • both A & B
It is NOT UNCOMMON in partnership firm _______.
  • co-owner can ask for the division of property
  • co-owner can transfer his rights without the consult of others.
  • co-owner has no. lien on property of business
  • all the above
Following are the elements which constitute a partnership _____________.
  • there must be a contact regarding a partnership
  • there must be an association of two or more persons
  • there should be $$7$$ persons
  • both a & b
A partner of a trading or non trading firm signs a Negotiable instrument liability incurs in _____________.
  • The name of the firm
  • In the name of partner
  • Both a & b
  • None of the above
All of the following are claimed advantages of joint venture except ____________________________.
  • the costs of a new project can be split between the companies involved
  • manufacturing costs will be divided between the firms in the venture
  • joint ventures between firms in different countries can create new market opportunities
  • management of the joint venture will never lead to disagreements
An idea of operating as a partnership would include ________________.
  • greater power than a sole trader for decision making
  • being able to raise capital through share issues
  • access to larger amount of initial capital
  • limited liability for all partners
An ordinary partnership business can not have ___________________.
  • more than $$50$$ partners.
  • not more than $$20$$ partners.
  • any number of partners.
  • any number than $$2$$partners.
Increase in the number of working women and the rise in number of family households are examples of _______________.
  • the geographic shifts in population.
  • the changing family.
  • the changing age structure of the population.
  • a better-educated and more white-collar population
The term company is defined under which sec of the Act?

  • Sec 3(1)
  • Sec 4 (2)
  • Sec 5 (4)
  • Sec 1(3)
New incoming partner pays his share of goodwill in cash, and profit sharing ratio of old partner is changed, Goodwill be distributed among old partners ____________.
  • as their old profit ratio
  • according to new ratio
  • according to sacrifice ratio
  • none of these
Mr. Varun is a rich man with ample amount of working capital. He wants to go for a business of chain of $$5$$ star holds. What kind of business organization you will suggest him_________________.
  • company
  • partnership
  • sole Proprietorship
  • trust
Mr. X is planning to take a business of manufacturing cheap medicines in India. The most suitable type of organization will be_______________.
  • company
  • corporation
  • partnership
  • society
This is UNTRUE about LLP_______________.
  • it has no perpetual existence
  • no requirement of minimum capital
  • easy to wind up
  • less cost of formation
A co-operative society can promise maximum _________ amount of interest on the money contributed by its members.
  • $$9\%$$
  • $$6\%$$
  • $$5\%$$
  • unlimited rate of interest
The main purpose of business organization is to______________.
  • conduct business
  • earn profit
  • establish relationship between men and material
  • all of the above
Who has the power to transfer the joint porperty of HUF so as to bind the interest of both adult and minor coparceners?
  • Son's of the HUF
  • Duaghters of the HUF
  • All the co-parceners of HUF
  • Karta of HUF
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