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CBSE Questions for Class 9 Elements Of Business Steps Involved In Establishing Business Quiz 13 - MCQExams.com
CBSE
Class 9 Elements Of Business
Steps Involved In Establishing Business
Quiz 13
Identify the disadvantage of LLP.
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An LLP can be structured in such a way that one partner has more rights than another.
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An LLP is much easier and cheaper to run than a private limited company.
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The partners are free to draft the agreement as they please, with regard to their rights and duties.
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Non-compliance fines can escalate to Rs. 5 lakh for a single year.
Explanation
Limited Liability Partnership can be defined as form of partnership where the partner or investor's liability is limited to the amount invested in the company. LLP combines the advantages of both the Company and Partnership into a single form of organization. Disadvantages of LLP are as follows:
a) An LLP can be structured in such a way that one partner has more rights than another.
b) Non-compliance fines can escalate to Rs. 5 lakh for a single year.
Identify the limitation of sole trading concern from the following.
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Sense of accomplishment
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Ease of formation and closure
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Limited liability
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Decision making may not be balanced in all the cases.
Explanation
The main
disadvantages
to being a
sole proprietorship
are: Unlimited liability: Your small business, in the form of a
sole proprietorship
, is personally liable for all debts and actions of the company. Unlike a corporation or an LLC, your business doesn't exist as a separate legal entity.
Which of the advantages of LLP states that one partner is not responsible or liable for another partners misconduct or negligence.
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Flexible agreement
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Separate legal entity
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Fewer compliance requirements
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Easy to wind-up
Explanation
Separate legal entity of LLP states that one partner is not responsible or liable for another partners misconduct or negligence. Limited Liability Partnership can be defined as form of partnership where the partner or investor's liability is limited to the amount invested in the company.
An LLP has partners unlike a company which has shareholders.
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True
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False
Explanation
A LLP has partners unlike a company which has shareholders- this is a true statement. Limited Liability Partnership can be defined as form of partnership where the partner or investor's liability is limited to the amount invested in the company. LLP combines the advantages of both the Company and Partnership into a single form of organization.
The maximum number of partners for a firm carrying on banking business is _________.
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10
0%
20
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7
0%
0
Explanation
Option A is correct One.
The new Companies Act 2013 has prescribed the maximum number of members in case of a partnership firm should not be more than
100
in case of partnerships. As per the previous Companies Act 1956, the maximum limit in case of partnerships was
10
and
20
for banking business and other businesses respectively.
A 'Co-parcener' is one who is _________ .
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An active member of a partnership
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A member of a Joint Hindu Family Firm
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A member of Joint Stock Company
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A member of co-operative society
The best way to explain limited liability is this :- 'you risk what you put in'.
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True
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False
Explanation
The best way to explain limited liability is this: 'you risk what you put in'. The concept of limited liability restricts the amount of money a person risks to what she invests in a business enterprise. It means that the liability of each person is limited to the extent of his/her share in the business.
The concept of _____ restricts the amount of money a person risks to what he invests in a business enterprise.
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Expert assistance
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Unlimited liability
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Separate legal existence
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Limited liability
Explanation
The concept of limited liability restricts the amount of money a person risks to what she invests in a business enterprise. It means that the liability of each person is limited to the extent of his/her share in the business. Limited liability in simple terms, means that 'you risk what you put in'.
Transfer of business includes __________.
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Sale
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Lease
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License
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All the above
Explanation
Option D is the correct answer.
The most numerous form of business ownership in the United States is the:
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partnership
0%
subchapter S corporation
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sole survivorship
0%
sole proprietorship
Explanation
A Sole Proprietorship consists of one individual doing
business
. Sole Proprietorships are
the most numerous form of business organization
in the
United States
, however, they account for little in the way of aggregate
business
receipts.
Therefore, D is the correct answer.
It is true that.
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formal organizations are the same as institution
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formal organizations are based on groups of people
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institutions are groups of people
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institutions are voluntary
Explanation
Option B is the correct answer.
Which one of the following is not a feature of Limited Liability Partnership firm?
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Partners should be less than $$20$$
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Partnership and management need not be separate
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Internal governance may be decided by mutual agreement among partners
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It is a corporate body with perpetual succession
Explanation
Option A is the correct answer.
Model, in which produced unit doubles every time as cumulative average time per unit decreases, by a constant percentage can be classified as ____________________.
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cumulative average time learning model
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cumulative mean learning model
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cumulative weighted learning model
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cumulative average pricing model
Explanation
Model, in which produced unit doubles every time as cumulative average time per unit decreases, by a constant percentage can be classified as cumulative average time learning model. The cumulative average time learning curve represents the fact that the time spent to increase the production at a double rate.
The swap arrangement where principal amounts are not exchanged, but periodical payments will be a _______________.
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Currency swap
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Cross currency interest swap
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Interest rate swap
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Non-Financial swap
Explanation
The swap arrangement where principal amounts are not exchanged, but periodical payments will be a interest rate swap. According to the finance terms, an interest rate swap can be referred to an interest rate derivative. It involves exchange of interest rates between two parties.
Limited liability partnership is ______
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Non mutual agency
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Hybrid form of business organization
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Social & Environment concern
0%
Public Sector
Explanation
Limited liability partnership is a
hybrid form of business organization
as it has a mixture features of both partnership firm and company.
Hence, the correct option is B.
According to section 32(1) of the partnership Act a partner may retire
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With the consent of all the existing partners
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In accordance with an express agreement
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In the case of partnership at will, by giving notice in writing to all the partners
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In any of the above three ways
Explanation
Option D is the correct answer.
Which of the following are the conditions needed to prove an act of a partner is an act of a partnership firm?
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Such an act be done in a ordinary course of a partnership firm
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It must be related to the business of the firm
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Act must have been done in the name and on behalf of the firm
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All of the above
Explanation
Every act of the partners must be done according to and related to the firm. Partner is an agent of the firm and his other partners for the purpose of the business of the partnership, and the acts of every partner who does any act for carrying on in the usual way business of the kind carried on by the firm of which he is a member bind the firm and his partners, so it should be done according to the business. An act or instrument relating to the business of the firm done or executed in the firm name, or in any other manner showing an intention to bind the firm, by any person thereto authorized, whether a partner or not, is binding on the firm and all the partners.
Hence, option D is correct.
Which of the following is not true about Matrix Organisation?
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It is relatively permanent
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Its project managers authority is distributed reasonably
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There is slow information processing
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Its project heads have to share resources with functional heads
Explanation
Option C is the correct answer.
A partner who neither contributes capital nor share profits of the firm is called a.....
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Sub-partner
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Sleeping partner
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Nominal partner
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Active partner
Explanation
Option C is the correct answer.
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