MCQExams
0:0:1
CBSE
JEE
NTSE
NEET
Practice
Homework
×
CBSE Questions for Class 9 Elements Of Business Steps Involved In Establishing Business Quiz 4 - MCQExams.com
CBSE
Class 9 Elements Of Business
Steps Involved In Establishing Business
Quiz 4
The act which governs the formation of a partnership business is the Indian Partnership Act _________.
Report Question
0%
1932
0%
1956
0%
1949
0%
1912
Explanation
The partnership form of business is governed by the Indian Partnership Act, 1932. A partnership comes into existence by a legal agreement between the partners called a Partnership Deed.
______________ is not a limitation of a sole proprietorship.
Report Question
0%
Limited resources
0%
Limited life of Business
0%
Easy formation
0%
Limited managerial skill
Explanation
There are minimum formalities required for the commencement and winding up of a sole proprietorship firm. There is no separate law governing it. Therefore, easy formation is not a limitation.
Which organisation is known as scalar or military organisation?
Report Question
0%
Matrix organisation
0%
Project organisation
0%
Line organisation
0%
Committee organisation
Explanation
Line organisation is known as military or scalar organisation as the authority in line organisation flows directly and vertically from the top level to middle level and then finally reach to lower level of management. The authority, responsibility and accountability are clearly defined in line organisation.
The oldest form of organisation is ______.
Report Question
0%
functional
0%
line
0%
line and taff
0%
none of the above
Explanation
Line organisation is the oldest form of an organisation. It is the simplest form of organisation as it is very simple to understand and simple to operate. The personnel in line organisation is involved directly towards the achievement of organisational goals.
Line organisation is suitable for _______.
Report Question
0%
small businesses
0%
large businesses
0%
medium businesses
0%
all of the above
Explanation
Line organisation is suitable for small concerns as it provides for greater control and discipline in the organisation. Rapid decision making is possible in line organisation as communication is very fast and easy and feedback can be acted upon faster making effective coordination possible.
The main advantage of functional organization is _________.
Report Question
0%
simplicity
0%
specialisation
0%
experience
0%
authority
Explanation
The functional organisation refers to the organisation formed by grouping of jobs of similar nature under major functions and organising these functions as separate departments such as human resource, finance etc, and it leads to simplicity in the working process.
Functional organisation is suitable for _____.
Report Question
0%
small concerns
0%
large concerns
0%
medium-sized concerns
0%
both (b) and (c)
Explanation
Functional organisation is suitable for large and medium sized concerns because there is a grouping of the activities of an organisation into certain major functional departments like IT, finance or marketing. Under functional organisation, various specialists are for various functions performed in an organisation.
The maximum number of partners allowed in the banking business are ______________.
Report Question
0%
Twenty
0%
Ten
0%
No limit
0%
Two
Explanation
The maximum number
of members that can exist in
partnership
is 10 in case of a firm carrying on
banking business
and 20 in case of any other
business
.
Profits do not have to be shared. This statement is true in the case of ______________.
Report Question
0%
Partnership
0%
Joint Hindu Family business
0%
Sole proprietorship
0%
Company
Explanation
In sole proprietorship, a proprietor is the only owner of the business and manages the business single-handedly and therefore, he is not required to share its profit with anyone.
Balu, Lalu and Kalu are partners in a firm. They admit Malu as a minor partner to the benefit of partnership. Within 6 months of his attaining majority, he fails to give a public notice of his intention that he has become a fullfledged partner. On the other hand all other partners refuse to take him as a partner. In this case, which of the following statement is correct ?
Report Question
0%
Malu is not liable as a partner
0%
Malu can become a partner
0%
Public notice is not essential for a minor partner on attaining majority
0%
A suit may be filed by other partners for dissolution of the firm
Explanation
A Minor can be admitted into the partnership with the consent of all the existing for the benefits of a partnership. On attaining majority, the minor must decide within 6 months whether he would like to become a partner in the firm and give public notice of his decision if he remains silent and fails to give public notice, it will be implied that he has elected to be a partner in the firm.
Hence option (B) is the correct answer.
The transfer by a company of one or more of its business divisions to another newly set up company is called _____________.
Report Question
0%
Demerged
0%
Merger
0%
Equity Carve-out
0%
Disinvestment
Explanation
Demerged is the right answer.
Which of the following is the most democratic form of organisation?
Report Question
0%
Line
0%
Line and Staff
0%
Functional
0%
Committee
Explanation
Line organisation is the most democratic form of organisation as the authority flows from top to bottom in concern and also the line of command is carried out from top to bottom. It is the most oldest and simplest form of administrative organisation.
Another name for MATRIX organisation is _____________.
Report Question
0%
Flexible organisation
0%
Geographic organisation
0%
Project organisation
0%
None of the above
Explanation
Option C is the correct answer.
If a network of interpersonal relationship that arise when people associate with each other is an informal organization, then find out which of the following is not an informal organization?
Report Question
0%
The "machine shop" group
0%
Customers' group
0%
The "sixth floor" group
0%
The "Friday evening bowling" gang
Explanation
Option b is the correct answer.
The organisation, which is owned and managed by one person is a ________________.
Report Question
0%
Sole proprietorship
0%
Joint stock company
0%
Government company
0%
All of these
Explanation
In sole proprietorship, whole organisation is owned and managed by the single person, who is the owner of organisation. He is the sole bearer of all risks and profits associated with the business.
Sole trading concern is owned and managed by________person/persons.
Report Question
0%
one
0%
two
0%
five
0%
six
Explanation
A sole trading business is the oldest and simplest form of business organisation as in this kind of business, there is no chaos in the management as a person is single handedly working for the business and also he is the single receiver of profit earned.
Non-profit Association means an institution formed for making reasonable profit.
Report Question
0%
True
0%
False
Explanation
(i) Non-profit association is a voluntary association established for conducting social, cultural educational or economic activities.
(ii) Such associations work for the benefits of the members and for the society.
(iii) These associations are service-oriented, which promote welfare of the society.
(iv) Rotary clubs, social clubs, sports club, educational institutions, recreation clubs, cultural club, chamber of commerce, etc.
A ___________ is the oldest and simplest form of business organisation.
Report Question
0%
Partnership Firm
0%
Sole Trading Concern
0%
Joint Stock Company
0%
None of these
Explanation
A sole trading business is the oldest and simplest form of business organisation as in this kind of business, there is no chaos in the management as a person is single handedly working for the business and also he/she is the single receiver of profit earned.
Lions club is the example of ________ .
Report Question
0%
Non-profit Association
0%
Co-operative Society
0%
Joint Stock Company
0%
None of these
Explanation
Lions club is formed to raise money for charitable purposes and for worthy cause. It comes under Non profit association as club does not focus on earning profit rather its main motto is "to serve".
Which of these rights are available to a partner under the Partnership Act ________.
Report Question
0%
Overtime and conveyance charges for attending firms business
0%
To open bank A/c in his name on behalf of the firm
0%
Right to share profits
0%
Right to transfer his share outside the firm without consent of other partner
Explanation
Option C is the correct answer.
Which of these rights are available to a transferee under the Partnership Act.
Report Question
0%
To inspect books of account
0%
To interfere in firms day to day business
0%
To transfer immovable property of the firm
0%
To receive share of assets to which the transferor entitled at the time of dissolution of the firm
Explanation
Option D is the correct answer.
In order to not to bind the firm for all the acts done by a partner within the implied authority which has been restricted by mutual agreement between the partners, the firm need to establish that........
Report Question
0%
The plaintiff knew such restrictions
0%
Did not know that the partner is the partner of the firm
0%
Either A or B
0%
Both
Explanation
Option C is the correct answer.
What is the real test of existence of a partnership
Report Question
0%
Mutual agency relationship
0%
Sharing of profit and loss
0%
Existance of business
0%
All the three
Explanation
Option A is the correct answer.
An association which is formed to promote art, cultural activities, etc is a ________ .
Report Question
0%
Joint stock company
0%
Sole proprietorship
0%
Non-profit Association
0%
None of these
Explanation
An association which is formed to promote art, cultural activities rather than focusing on earning profits is known as Non-profit association. For example: Rotary club, as it does not aim at earning profits rather focuses on social welfare.
___________ is an association which does not aim at profit making.
Report Question
0%
Non-profit Association
0%
Joint stock company
0%
Co-operative society
0%
Government organisation
Explanation
Non-Profit association works only for the social welfare and to encourage high ethical behavior without focusing on earning profit. Its main focus is to maximize the benefit of members involved.
Application for dissolution of a firm on the ground of permanent incapacity of a partner can be made by...
Report Question
0%
Any partner
0%
Any partner other than who is permanently incapable
0%
Partner who is permanently incapacitated
0%
Senior-most partner only
Explanation
Option B is the correct answer.
Indian Partnership Act defines business in...........
Report Question
0%
Inclusive manner
0%
Exclusive manner
0%
Exhaustive manner
0%
illustrative manner
Explanation
Option A is the correct answer.
Which of the following is not the property of a partnership firm
Report Question
0%
Goodwill of the firm
0%
Ancestral property of a partner
0%
Property purchased by or for the firm
0%
All rights, liabilities originally brought into the stock of the firm
Explanation
Option B is the correct answer.
A person not being a partner but represents himself to be a partner is called...........
Report Question
0%
Sub partner
0%
Partner by estoppels
0%
Sleeping partner
0%
Dormant partner
Explanation
Option B is the correct answer.
Which of these rights are affected in case of an unregistered firm
Report Question
0%
Non-contractual rights
0%
Right of third party against the firm
0%
Rights of the partner to sue for dissolution of the firm
0%
All the three
Explanation
Option A is the correct answer.
0:0:1
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
0
Answered
0
Not Answered
0
Not Visited
Correct : 0
Incorrect : 0
Report Question
×
What's an issue?
Question is wrong
Answer is wrong
Other Reason
Want to elaborate a bit more? (optional)
Practice Class 9 Elements Of Business Quiz Questions and Answers
<
>
Support mcqexams.com by disabling your adblocker.
×
Please disable the adBlock and continue.
Thank you.
Reload page