CBSE Questions for Class 11 Commerce Business Studies Forms Of Business Organisation Quiz 9 - MCQExams.com

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
Where the partnership is at will, the firm may be dissolved by __________ giving notice in writing to all the other partners of his intention to dissolve the firm.
  • Any partner
  • Two partners
  • Three partners
  • Four partners
Which of the following can be treated as characteristic of co-operative society?
  • Voluntary association
  • Separate legal entity
  • Democratic management
  • All of above
Characteristics of a company.
  • Artificial legal person
  • Incorporated body
  • Capital divisible into shares
  • All of above
A minor can be admitted to the benefits of partnership, which means _______.
  • He can have a share in the loss only
  • He can have a share in the profit only
  • He cannot have any share in profit or loss
  • He can have a share in the profits only if other partner by majority agrees to give it
Registration of partnership is _________.
  • Compulsory
  • Not compulsory
  • Compulsory if its turnover exceeds specified amount
  • Compulsory if it is liable to tax audit under the Income Tax Law
A partnership is deemed to be a partnership at will when.
$$1$$. No fixed period has been agreed upon for the duration of partnership.
$$2$$. There is no provision made as to the determination of partnership in any other way.
Select the correct answer from the options given.
  • $$1$$ only
  • $$2$$ only
  • Both $$1$$ & $$2$$
  • Neither $$1$$ nor $$2$$
Which of the following is a voluntary association of persons who work together to promote their economic interest?
  • Sole proprietorship
  • Company
  • Co-partnership
  • Co-operative
The management of the company is carried on by the elected __________.
  • Board of partners
  • Board of trustees
  • Board of directors
  • Board of shareholders
Match the following:
List IList II
P. Consumers co-operative societies$$1.$$ Formed by small producers and manufacturers who find it difficult to sell their products individually.
Q. Producers co-operative societies$$2.$$ Formed to provide financial support to the members.
R. Co-operative marketing societies$$3.$$ Formed to protect the interest of small producers by making available items of their need for production like raw materials, tools and equipments, machinery, etc.
S. Co-operative credit societies$$4.$$ Formed by small farmers to work jointly and thereby enjoy the benefits of large-scale farming.
$$5.$$ Formed to protect the interest of general consumers by making consumer goods available at a reasonable price.
Select the correct answer from the options given below.
  • $$P - 5, Q - 3, R - 2, S - 1$$
  • $$P - 5, Q - 3, R - 1, S - 2$$
  • $$P - 4, Q - 2, R - 1, S - 3$$
  • $$P - 3, Q - 5, R - 2, S - 1$$
Handloom societies like APPCO, Bayanka, Haryana Handloom, etc., are examples of ____________________.
  • Producers' co-operative societies
  • Co-operative marketing societies
  • Co-operative credit societies
  • Consumers' co-operative societies
The main objective(s) of co-operative society is/ are ________.
  • Earning profit
  • Competition with private sectors enterprises instead of mutual help
  • Self help in place of dependence
  • All of above
Which of the following is example of producers' co-operative society?
  • Haryana handloom
  • Gujarat co-operative milk marketing federation
  • Apna Bazar
  • Urban Cooperative Banks
The income of cooperative society is legally ________ as per the Income - tax Act, $$1961$$.
  • Not taxable
  • Taxable
  • Totally exempt
  • Taxable is State Government pass order
Lift-irrigation cooperative societies and pani-panchayats are some of the examples of ________.
  • Co-operative farming societies
  • Co-operative marketing societies
  • Co-operative credit societies
  • Consumers' co-operative societies
Village Service Co-operative Society and Urban Cooperative Banks are examples of _____________________.
  • Producers' co-operative societies
  • Co-operative marketing societies
  • Co-operative credit societies
  • Consumers' co-operative societies
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 is/ are advantage of LLP?
  • Perpetual existence
  • Internationally renowned form of business in comparison to Company
  • No requirement of minimum capital contribution
  • All of above
Which of the following is not the  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
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 basic aim of the co-operative society is _______ help.
  • Mutual
  • Self
  • (A) or (B)
  • Poor peoples
Which of the following is/ are not disadvantage of co-operatives?
  • Lack of capital
  • Mutual help instead of competition
  • Difficult to maintain business secrecy
  • Unwanted interference by the departmental personnel
The advantages of co-operative society is/ are ______________________.
  • It is very expensive and difficult to form co-operative society as compared to a 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
The co-operative society has perpetual succession because it is not affected due to __________________.
  • Death of any members
  • Insolvency of any member
  • Lunacy of any member
  • Any of above
Statement $$1$$:
The liability of members of co-operative society remains limited to the extent of capital contributed by them.
Statement $$2$$:
The members of co-operative society are personally liable of co-operative society.
Select the correct answer from the options given below.
  • Both $$1$$ and $$2$$ are true
  • $$2$$ is true but $$1$$ is false
  • $$1$$ is true but $$2$$ is false
  • Both $$1$$ and $$2$$ are false
According to Indian Co-operative Societies Act, $$1912$$, may distribute maximum up to ______ of its surplus as dividend to its members.
  • $$100$$ per cent
  • $$90$$ per cent
  • $$50$$ per cent
  • $$25$$ per cent
LLP can raise funds from public.
  • True
  • False
  • Partly true
  • None of above
Which of the following is/ are advantages of LLP?
  • Personal assets of the partners are liable in all cases
  • Much more difficult to dissolve or wind-up
  • No requirement to maintain statutory records excepts books of account
  • All of above
A partnership firm has no separate existence apart from its members. Whereas a company is a ___________ distinct from its member.
  • Do not have separate legal entity
  • Separate legal entity
  • Non-profit making organization
  • None of the above
Which of the following statement is not correct in relation to 'Franchise'?
  • Franchising is the practice of using another firm's successful business model.
  • It is the business relationship between two organizations where a franchiser, who is the owner of a brand name, product, or system of a business, permits a franchisee to use its brand, product, or business process for a fee,
  • The franchisor provides training and continuous assistance to the franchisee.
  • Franchiser shares all business and trade secrete with franchisee
Identify which of the following statement is true and which is false?
(i) As relations of partners inter se are that of agency, no consideration is required to create the partnership,
(ii) Partnership and Joint Hindu Family both are created by status.
(iii) There is no restriction as to maximum number of members for HUF.
(iv) Registration is also required for HUF.
Select the correct answer from the options given.
  • (i)-True, (ii)-False, (iii)-True, (iv)-False
  • (i)-False, (ii)-True, (iii)-False, (iv)-True
  • (i)-True, (ii)-False, (iii)-False, (iv)-True
  • (i)-False, (ii)-True, (iii)-True, (iv)-False
The right choice of the form of the business depends upon ___________.
(I) Nature of business
(II) Volume of business
(III) Area of operation
  • (I) and (II)
  • (III) and (II)
  • (I) and (III)
  • All of above
HUF is governed by __________.
  • The Indian Partnership Act, $$1932$$
  • Hindu Law
  • The Companies Act, $$2013$$
  • None of the above
A co-parcener __________ ask for accounts.
  • Cannot
  • Can
  • Both (A) & (B)
  • (A) or (B)
A minor is a member of a joint family firm from the _________ by virtue of his status, but he is not personally liable.
  • Very day of his birth
  • Day he becomes major
  • Day he complete $$21$$ years
  • None of the above
Every partner is personally liable for the debts of the firm; in a joint family business only __________ is personally liable.
  • Male member
  • Karta
  • Major male member
  • Minor male member
To whom the property of the firm belongs?
  • Partners
  • Working partner of the firm
  • Firm and not to individual partners
  • Property belongs to both partners and firm
Identify which sentence is correct and which is incorrect.
A. A sub-partner can bind the firm or other partners by his acts.
B. Sub-partner has rights or duties towards the firm and does carry liability for the dents of the firm.
C. Minor partner is entitled to his agreed share
D. Minor can inspect books of account of the firm.
Select the correct answer from the options given.
  • Sentence A & B are incorrect while sentence C and D are correct
  • Sentence B & C are incorrect while sentence A & B are correct
  • Sentence A, B & C are correct while sentence D is incorrect
  • Sentence B, C & D are correct while sentence A is incorrect
A change in the nature of the business can only be brought about by the consent of __________.
  • Majority partners
  • All the partners
  • Any two partners
  • Any five partners
Property of the firm shall be held by use of the partners __________________.
  • Exclusively for business purpose
  • For business purposes as well as private purposes of the partners
  • For the private purposes of the partners
  • For business purposes but in exceptional cases it can used for private purpose
Registration of partnership is not compulsory but registration of company is __________.
  • Optional
  • Compulsory
  • Compulsory in some cases
  • Optional but compulsory in some cases
Where a partnership firm is formed for a particular undertaking or undertakings, it proceeds to carry on other undertaking or undertakings, in that event the mutual ________ of the partners in respect of the other adventures or undertakings are the same as those in respect of the original adventures of undertakings.
  • Rights
  • Duties
  • Rights and duties
  • Duties & liabilities
Which of the following is/are disabilities of unregistered firm?
  • No suit between partners and firm
  • No suit by firm on a third party
  • No claim of set-off
  • All of the above
In the absence of agreement, express or implied, the property of the firm is deemed to include _______________________________.
  • All property, rights and interest which have been brought into the common stock for the purposes of the partnership by individual partners, whether at the commencement of the business or subsequently added there to
  • Those acquired in the course of the business with money belonging to the firm
  • The goodwill of the business
  • All of the above
Identify the incorrect sentence.
  • A sub-partner is not connected with the firm
  • A sub-partner has no relationship with other partners in the firm
  • A sub-partner has a right in the firm's business
  • A sub-partner can claim his agreed share from the partner with whom he entered into sub-partnership
Which of the following partners are not liable in relation to the firm?
  • Partner by holding out
  • Working partner
  • Sub-partner
  • Partner by estoppel
A partner can transfer his interest so as to substitute the transferee in his place as the partner, without the consent of all the other partners; a member of company cannot transfer his share to any one he likes.
  • False
  • True
  • Partly true
  • Partly false
Every partner is entitled to share in the profits ________, unless different proportions are stipulated.
  • In proportion of capital
  • Equally
  • In proportion to balance in current accounts
  • $$50\%$$ profit equally and remaining $$50\%$$ in capital ration
Partner shall indemnify the firm for any loss caused to it but his _______ in the conduct of the firm's business.
  • Negligence
  • Interference
  • Willful neglect
  • Honesty
Which of the following statement is incorrect as to a minor's position in a partnership firm?
  • Minor is admitted to a share of partnership profits
  • Minor is personally liable to contribute to the losses
  • Minor is entitled to a share of the firm's property
  • Minor can inspect and copy any of the firm's accounts
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