CBSE Questions for Class 9 Elements Of Business Steps Involved In Establishing Business Quiz 7 - MCQExams.com

A partner who does not get actively involved in business is a  _________ partner.
  • active
  • sleeping or dormant
  • nominal
  • sub-partner
Agreement to share profits in a partnership firm ________.
  • must be coupled with an agreement to share losses
  • is same as agreement to share losses
  • implies an agreement to share losses
  • does not necessarily mean an agreement to share losses.
In which of the following cases, a partnership firm may be dissolved?
X. On the death of a partner.
Y. On the insolvency of a partner
Z. On the retirement of a partner
Correct option is _______________.
  • X and Y
  • X and ?-
  • Y and Z
  • X, Y and Z
Person doing business solely is known as ________.
  • single person
  • sole proprietor
  • company
  • partner
Statement A : Easy to form is advantage of sole proprietorship form of business.
Statement B: Easy to wind up is advantage of sole proprietorship form of business.
  • Statement A is true but Statement B is false
  • Statement A is false but Statement B is true
  • Both Statement A and B are true
  • Both Statement A and B are false
A business started by only one person is called________.
  • Company
  • Sole proprietorship
  • Trust
  • Society
Sole proprietorship form is most suitable ___________.
  • Where the nature of business is simple.
  • Where manual skill is required.
  • Where the market for the product is small and local.
  • All of above
The business started by a group of persons can be ________.
  • Company
  • Hindu Undivided Family
  • Partnership
  • Any of the above
The Court may not dissolve the firm in case of __________.
  • permanent in capability of a partner
  • insanity of a partner
  • misconduct of a partner
  • retirement of a partenr
Which of following form of business is the most simple and common in our country?
  • Statuary corporations
  • Sole proprietorship
  • Company
  • All of above
Which of the following statement is/are TRUE and which is/are FALSE?
I. Sole proprietorship business includes only shopkeepers.
II. In sole proprietorship business the proprietor has full control over each and every activity of the business. 
III. The sole proprietor is always in a position to maintain good personal contact with the customers and employees.

Select the correct answer from the options given below:
  • I - False

    II - False

    III - True
  • I - False

    II - True

    III - True
  • I - True

    II - False

    III - True
  • I - False

    II - True

    III - False
Sole proprietorship form is not suitable _______________.
  • Where capital requirement is large and risk involvement is heavy.
  • Where manual skill is required.
  • Where the market for the product is small and local.
  • All of above.
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
Which of following is advantages (A) and which is disadvantage (D) of sole proprietorship form of business?
(i) Maintenance of business secrets
(ii) Limited capital
(iii) Quick decision and prompt action
(iv) Lack of continuity
Select the correct answer from the options given below.
  • i - A

    ii - A

    iii - A

    iv - A
  • i - D

    ii - D

    iii - D

    iv - D
  • i - A

    ii - D

    iii - A

    iv - D
  • i - D

    ii - A

    iii - D

    iv - A
Characteristics of sole proprietorship form of business is/are :
1. Single owner
2. Unlimited liability
3. Control by partner
4. No sharing of profit and loss
  • 1 and 4 only
  • 2, 3, 4
  • 2 and 1 only
  • 4, 2 and 1
Sole proprietorship form is most suitable ____________.
  • Where the market for the product is small and local.
  • Where customers are given personal attention, according to their personal tastes and preferences.
  • Where capital requirement is small and risk involvement is not heavy.
  • All of above.
Which of the following is/are advantage 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 except books of account
  • All of above
When firm successfully engages in mergers and acquisitions it is called _________.
  • Expansion
  • Growth and expansion
  • Business planning
  • Modernization
How partners are liable for the debts and obligations of the firm?
(i) Jointly
(ii) Severally
Select the correct answer from the options given below:
  • i only
  • ii only
  • Both i and ii
  • Neither i nor ii
Common examples for non profit corporations are __________________.
  • Educations corporations
  • Charitable corporations
  • Religious corporations
  • All of above
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
A minimum of ____________ are required to start a partnership business.
  • Five persons
  • Four persons
  • Three persons
  • Two persons
Which of the following is not 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.
The right choice of the form of the business depends upon ______________.
I - Nature of business
II - Volume of business
III - Area of operation
Select the correct answer from the options given below:
  • I and II
  • III and II
  • I and III
  • I, II and III
Whoever a new partner is added to the firm the firm is ____________.
  • dissolved
  • continued
  • not effected
  • reorganized
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
The partners have a ___________ relationship.
  • family
  • principal and agent
  • business
  • none of the above
Even a single partner may be called upon to pay the debts of a partnership firm.
  • Partly true
  • True
  • Partly false
  • False
The business in which only a single owner arranges the capital is ____________.
  • Partnership
  • Hindu joint family business
  • Sole proprietorship
  • NGOs
The sole proprietorship form of business discourages self employment.
  • True
  • False
  • Partly true
  • Partly false
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