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CBSE Questions for Class 11 Commerce Business Studies Forms Of Business Organisation Quiz 8 - MCQExams.com
CBSE
Class 11 Commerce Business Studies
Forms Of Business Organisation
Quiz 8
Karta in HUF is _______ of his family.
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0%
owner
0%
representative
0%
oldest member
0%
none of the above
Explanation
Karta in HUF is oldest of the family.
Invariable _________ is the disadvantage of co-operative society.
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0%
business secrecy
0%
low prices
0%
limited liability
0%
open membership
If the objective for the business organization is self help as well as mutual help. It is ________ of organization.
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partnership
0%
sole proprietorship
0%
co-operative society
0%
company
The maximum number of partners in a partnership firm can be ______.
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0%
10
0%
20
0%
50
0%
100
Explanation
Option D is the correct answer.
State with reasons whether the following statements are True or False.
In a partnership firm, the liability of partners is unlimited.
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0%
True
0%
False
Explanation
As per the Partnership Act 1932, the liability of the partners in a partnership firm is unlimited. In case when the dues of the third parties cannot be paid from the assets of the firm, the partners will have to pay the amount out of their personal assets. Also, each partner is bound by the act of the other partners.
Business is treated as a separate entity accounts for ______________.
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0%
Limited Liability Partnership
0%
Partnership
0%
Company
0%
All of the above
Explanation
Accounting is based on certain basic concepts. One of the concept is "Separate Entity Concept". This defines that, for all accounting purposes, the business is considered to be a separate entity distinct from its owners. The transactions of business are recorded in the books of the business and the position of owner in his business will be like other creditors.
This concept applies to all the forms of businesses.
The Minimum Number of Members in a Private Company and Public Company are _______________.
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Three and Seven respectively
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Two and Seven respectively
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Two and Nine respectively
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None of the above
Explanation
Option B is the correct answer.
Partnership Deed is also called as ______.
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none of the above.
0%
partnership document
0%
articles of partnership
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both of these
LLP shall have atleast ___ Partners
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0%
2
0%
4
0%
3
0%
5
Explanation
An LLP need to have atleast two designated partners (DPs) who was responsible for working of an LLP. The designated partners need to have DIN or DPIN. So if the LLP has 3 partners out of which 2 are DPs, each one of the DPs needs to have a DIN / DPIN. To start an LLP, you require at least two partners.
The form of business organisation in which there is separation of ownership and management is called _______.
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0%
sole partnership
0%
partnership
0%
company
0%
all these
Explanation
Option C is the correct answer.
A form of licensing in which a firm provides its foreign franchisee with a complete assortment of materials and services is known as _________.
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Repatriation
0%
Licensing
0%
Franchising
0%
International management
Which of the following enjoys separate legal entity status?
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Partnership Firms
0%
LLP
0%
Company
0%
Both b and c
Explanation
Separate Legal Entity:
A company and LLP becomes a separate legal entity as compared to its members and partners. The company and LLP is distinct and different from its members and partners in law. It has its own seal and its own name, its assets and liabilities are separate and distinct from those of its members. It is capable of owning property, incurring debt, and borrowing money, employing people, having a bank account, entering into contracts and suing and being sued separately.
The _________ is responsible for doing all acts, matters and things as are required to be done by LLP as per the Act.
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0%
Designated Partner
0%
Active Partner
0%
Designated Director
0%
All the partners
The maximum number of partners in partnership firm is determined by__________.
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0%
Companies Act
0%
Partnership Act
0%
Limitation Act
0%
None of the above
Explanation
Option A is the correct answer.
A Model Form of Articles contained in Table "F" relates to a Company Limited by ________________.
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Shares
0%
Guarantee,
0%
Shares and Guarantee
0%
None of the above.
Each Partner in a firm is in the position of ________.
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only agent
0%
only principal
0%
agent as well as principal
0%
neither agent nor principal.
Explanation
Option C is the correct answer.
When no ratio of sharing of profits and losses are given, then profit and losses is shared ________.
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equally
0%
in capital ratio
0%
4:1
0%
none
Explanation
Option A is the correct answer.
M, is employed by PQR Bros., a Partnership Firm. M is entitled to remuneration of Rs. 40,000 p.m. plus 12% on the Profits of the Firm, if profits exceed Rs.10 Lakhs. Here ___________.
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0%
M is not deemed as a Partner in the Firm
0%
M is deemed as a Partner in the Firm
0%
the appointment of M is invalid
0%
M can claim only Rs. 40,000 p.m. but not share of profits.
Explanation
Option A is the correct answer.
A was an Employee in a Partnership Firm with a Salary of Rs. 50,000 per month and he will get a Share of 30% in Profits if the Profits ot the Firm exceed Rs.5,00,Now W is called ________.
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partner of the firm
0%
not a partner of the firm
0%
he cannot take share in profits
0%
is not entitled to any salary.
Explanation
Option B is the correct answer.
The amount received by a partnership firm from the insurance company on the maturity of a Joint Life Policy taken by the firm will be distributed amongst the partner ___________.
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0%
equally
0%
in the profit sharing ratio
0%
in the ratio of capital balances at the beginning of the year
0%
in the ration of capital balances at the end of the accounting year.
Explanation
Option B is the correct answer.
As per the agreement, Profits should be shared equally but Loss shall be borne by one Partner. Then the Partnership agreement is_____.
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0%
lawful
0%
illegal
0%
void
0%
voidable
Explanation
Option A is the correct answer.
Partnership at Will means ___________.
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no duration Period is Fixed
0%
dissolved at the will of the Creditors
0%
dissolved at the will of the Debtors
0%
none of the above.
Explanation
Option A is the correct answer.
In which of the following, the Partnership duration is not fixed?
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Particular Partnership
0%
Partnership at will
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Fixed term Partnership
0%
None of these.
Explanation
Option B is the correct answer.
The Mode of determining the existence of Partnership is __________.
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real relation between them.
0%
sharing of profits.
0%
ubsiness is to be carried on by all or any of them acting for all.
0%
all of the above.
Explanation
Option D is the correct answer.
Sharing of profits is _________ evidence of existence of Partnership.
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collaborative
0%
confirmative
0%
conclusive
0%
not a conclusive
Explanation
Option D is the correct answer.
Application for Registration of Firms should be signed by ____________.
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0%
all the Partners or their agents.
0%
majority of the Partners or their agents.
0%
all Working Partners or their agents.
0%
all Minor Partners.
Which is true statement regarding the including of the minor in partnership firm?
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0%
A minor may be admitted to the benefits of partnership with the consent of all other partners.
0%
A minor may be admitted to the benefits of partnership with no consent of other partners.
0%
A minor may be admitted to the benefits of the consent of his partners.
0%
A minor may be admitted to the benefits of partnership with the guarantee of his parents.
Explanation
Option A is the correct answer.
To admit a new Partner, unless there is a contract to the contrary, consent is required from _________.
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0%
all the existing Partners.
0%
majority of the existing Partners.
0%
any one of the existing Partner.
0%
all the working Partners.
Explanation
Option a is the correct answer.
A Retiring Partner is entitled to Profits of the Firm?
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0%
Upto $$31^{st}$$ March
0%
When last accounts is made up
0%
Up to retirement date
0%
Not entitled to any Profit.
The Register of Firms shall be open to inspection by ____________.
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0%
the registrar of Firms.
0%
partners of the Firm.
0%
creditors of the Firm.
0%
any person.
No public notice is required on the death of a Partner.
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0%
True
0%
Partly True
0%
False
0%
None of the above.
Explanation
Option C is the correct answer.
The Registrar of Firms is appointed by __________.
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Central Government
0%
State Government
0%
Central and State Government
0%
Chief Justice of India.
Retiring Partner may be discharged from liability to any third party for acts of Firm done before his retirement by ________.
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an agreement made with such third party and the Partners of reconstituted Firm
0%
implied from the course of dealing between the third party and reconstituted Firm after he had knowledge of the retirement
0%
either (a) or (b)
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both (a) and (b).
Which of these acts are within the implied authority?
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Settlement of accounts with third parties who deal with the Firm.
0%
Open a bank account on behalf of the Firm in the Partner's own name.
0%
Compromise or relinquish any claim or portion of claim by the Firm.
0%
Submit to arbitration, a dispute relating to the business of the Firm.
In case of Partnership at Will, Notice of intention to dissolve the Firm may be served by ___________.
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0%
sleeping partners only
0%
any of the working partners
0%
any of the partners
0%
majority of the partners.
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Both Statements are true
0%
Both Statements are false
0%
Statement X is true while Statement Y is false
0%
Statement Y is true while Statement X is false
Explanation
Option B is the correct answer.
In case of sole proprietorship there is a _______ between _________.
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Direct link, effort and reward
0%
Indirect link; Profit and loss
0%
Direct link; Profit and loss
0%
Indirect link; effort and reward
Explanation
Option A is the correct answer.
In sole proprietorship, there is only person who is entitled to all the profits and losses. Therefore it creates a direct link between efforts and rewards. The scale of profit is dependent upon the efforts put in by owner.
Which of the following are the essentials of partnership?
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Association of two or more persons
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Agreement/contract
0%
Carrying on business
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All of above
Explanation
Option D is the correct answer.
Persons who have entered into partnership with one another are called individually __________________.
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Firm
0%
Co-owner
0%
Firm name
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Partner
The partnership deed is also called as _______________.
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0%
Partnership agreement
0%
Constitution of partnership
0%
Articles of partnership
0%
All of the above
Explanation
According to the Partnership Act, 1932 the relationship between the partners of a partnership firm can only be created through a mutual agreement between the partners which will be presented in the manner of contract that can be verbal as well as written also. But nowadays written is given more preference due to legal requirements. The written partnership agreement which has all rules and regulations implied on all the partner's mention thereof is called a partnership deed. A partnership deed is also called partnership agreement or the constitution of partnership or articles of partnership.
Hence, option (D) is the correct answer.
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.
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0%
X is true but Y is false
0%
Y is true but X is false
0%
Both X and Y are false
0%
Both X and Y are true
Explanation
Option D is the correct answer.
If the partnership agreement, is in ________ it is known as a 'Partnership Deed'.
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0%
Verbal
0%
Written
0%
Implied
0%
Verbal, written or implied
Explanation
According to the Partnership Act, 1932 the relation between the partners of a partnership firm can only be created through a mutual agreement between the partners which will be presented in the manner of contract that can be verbal as well as written also. But nowadays written is given more preference due to legal requirements. The written partnership agreement which has all rules and regulations implied on all the partners mention thereof is called partnership deed.
Who of the following can enter into partnership agreement ($$\checkmark$$) and who cannot $$(x)$$?
P. Minors
Q. Company
R. Lunatics
S. Insolvent
Select the correct answer from the options given below.
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0%
$$P - \checkmark, Q - \checkmark, R - \checkmark, S - x$$
0%
$$P - x, Q - \checkmark, R - x, S - x$$
0%
$$P - \checkmark, Q - \checkmark, R - \checkmark, S - \checkmark$$
0%
$$P - x, Q - x, R - x, S - x$$
Explanation
According to the Partnership Act, 1932 , any person who is below the age of eighteen, any person who has an artificial body by law, any person who is mentally ill and any person who is declared bankrupt cannot be admitted as a partner in a partnership firm.
A minor may be admitted to the benefits of a partnership with the consent of ___________.
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0%
Majority partners
0%
All other partners
0%
$$75\%$$ partners
0%
Any other one partner when there are four partners
Explanation
According to the Partnership Act, 1932 a minor can be admitted as a partner in a partnership firm with the consent of all the partners in the agreement where the minor will share only the profits or gains of the firm and he will have no share in the firms loss.
In which of the following case there is NO partnership?
A. The members of a HUF carrying on a family business
B. Burmese Buddhist Husband and wife carrying on business.
Select the correct answer from the options given.
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B only
0%
A only
0%
Both A and B
0%
Neither A nor B
Explanation
Option C is the correct anwer.
As per Section $$(2)$$b of the Act the term "business" includes every __________________.
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Trade
0%
Trade and Occupation
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Trade, occupation and profession
0%
Trade, occupation, profession and art
N and Z, the co-owners of a house, use the house as a hotel managed either by themselves or by a duly appointed manager for their common profit. Is there a partnership relation between the parties?
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0%
Yes
0%
No
0%
Partly yes
0%
Can't say
Explanation
If N and Z, the co-owners of the house, use the house for hotel management purposes then it will not be considered as any partnership relation because there is no contract between them in any manner, either it is verbal or written regarding the partnership agreement.
Hence, option (B) is the correct answer.
Where the partnership is at will, the firm may be dissolved by any partner giving notice in writing to _________ of his intention to dissolve the firm.
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0%
Any one of the partner
0%
All the other partners
0%
Two partners
0%
Three partners
Explanation
The partnership is started at the will of the partners where the firm stands dissolved whenever the partners want it to as there is no fixed period or provision regarding the business duration and determination of the firm. Such a type of partnership is known as a partnership at will. Any partner can dissolve the firm by giving a prior notice regarding the dissolution mentioning a legitimate reason behind the dissolution.
Hence, option (B) is the correct answer.
A partnership may be _________.
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0%
For particular adventure
0%
For fixed period
0%
A partnership at will
0%
Any of the above
Explanation
A partnership basically refers to the contract between two or more people who have agreed to carry on certain business in order to achieve common goals. The partnership can be started for a specific purpose and stand dissolved after the completion of the purpose, it can be started for a fixed period in order to earn profits and even partnership can be started at the will of the partners where the firm stands dissolved whenever the partners want it to.
Which of the following does not reflect the mutual agency principle in partnership?
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The partner is both agent & principle
0%
A partner can, by his act bind other partner and in turn is bound by the acts of other partners
0%
All partners should actively participate in the business
0%
Business may be managed by one or more partners
Explanation
Mutual agency relationship which refers to the mutual relationship and understanding between the partners of a business where every partner acts as an agent as well as a boss for the other partner. So it is not necessary for all the partners to participate in the business. Even an act by one partner is bound on all other partner.
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