CBSE Questions for Class 9 Elements Of Business Steps Involved In Establishing Business Quiz 8 - MCQExams.com

The risk of the sole proprietorship business is shared with the employees of the business _______________.
  • Partly true
  • True
  • Partly false
  • False
Every business enterprise is an independent undertaking.
  • True
  • False
  • Partly True
  • Partly False
The money contributed to the company by its members is its __________ and is known as the member's __________.
  • assets, share
  • profit, investment
  • capital, share
  • none of the above
____________ is the most flexible kind of business Organisation.
  • Sole Proprietorship
  • Partnership
  • Co-Operatives and Trusts
  • Limited Liability Partnership
Which of the following are a form of a business enterprise?
  • Partnership
  • Cooperative
  • Joint hindu family
  • All of the above
Compared to licensing, franchising is a more advantageous entry mode because ________________________.
  • It generates economies of scale in marketing to international customers
  • It is low-risk and low-cost
  • It offers greater control
  • All the above
Following are the elements which constitute a partnership _____________.
  • there must be a contact regarding a partnership
  • there must be an association of two or more persons
  • there should be $$7$$ persons
  • both a & b
Limited Liability Partnership form of business organization has been introduced in India by ________.
  • Indian Companies Act, $$1956$$
  • Limited Liability Partnership Act, $$2008$$
  • Indian Contract Act
  • Limited Liability Partnership Act, $$2006$$
The most suitable definition of a sole trader form of business organization is ____________________.
  • The business who manufacture only one product.
  • The business is owned by one person.
  • The firm has a single buyer.
  • There is a single seller is the industry.
A, B, C & D are partners A retires, B dies, the status of partnership _____________.
  • Remains unchanged
  • Comes to an end
  • Reconstituted
  • All of the above
At the time when a new partner enters, Good will _________________________.
  • belongs to all partners, new and old
  • belongs only to the new partner who is going to be admitted.
  • belongs only to the old partner who have credited it
  • none of the above
Mr. X is planning to take a business of manufacturing cheap medicines in India. The most suitable type of organization will be_______________.
  • company
  • corporation
  • partnership
  • society
Where a partner cannot be clear his debts on dissolution, the other partners must clear these debts in the following manner ___________________.
  • Partnership profit/loss sharing ratio
  • Debts are shared equally
  • In the ratio of their last agreed capital balance
  • Both a & b
It is NOT UNCOMMON in partnership firm _______.
  • co-owner can ask for the division of property
  • co-owner can transfer his rights without the consult of others.
  • co-owner has no. lien on property of business
  • all the above
The main purpose of business organization is to______________.
  • conduct business
  • earn profit
  • establish relationship between men and material
  • all of the above
A partner of a trading or non trading firm signs a Negotiable instrument liability incurs in _____________.
  • The name of the firm
  • In the name of partner
  • Both a & b
  • None of the above
An idea of operating as a partnership would include ________________.
  • greater power than a sole trader for decision making
  • being able to raise capital through share issues
  • access to larger amount of initial capital
  • limited liability for all partners
An ordinary partnership business can not have ___________________.
  • more than $$50$$ partners.
  • not more than $$20$$ partners.
  • any number of partners.
  • any number than $$2$$partners.
Which one of the following is NOT an effective way to terminate an offer?
  • Rejection by the offeree.
  • Failure of a conditions precedent.
  • Revoking the offer following acceptance.
  • Lapse of reasonable time
Discharge of contract due to insolvency _____________________.
  • Discharge by mutual agreement
  • Discharge by lapse of time
  • Discharge by operation of law
  • Discharge by impossibility.
New incoming partner pays his share of goodwill in cash, and profit sharing ratio of old partner is changed, Goodwill be distributed among old partners ____________.
  • as their old profit ratio
  • according to new ratio
  • according to sacrifice ratio
  • none of these
This is UNTRUE about LLP_______________.
  • it has no perpetual existence
  • no requirement of minimum capital
  • easy to wind up
  • less cost of formation
LLP shall have atleast ___ Partners
  • 2
  • 4
  • 3
  • 5
A form of licensing in which a firm provides its foreign franchisee with a complete assortment of materials and services is known as _________.
  • Repatriation
  • Licensing
  • Franchising
  • International management
Which of the following enjoys separate legal entity status?
  • Partnership Firms
  • LLP
  • Company
  • Both b and c
The _________ is responsible for doing all acts, matters and things as are required to be done by LLP as per the Act.
  • Designated Partner
  • Active Partner
  • Designated Director
  • All the partners
The maximum number of partners in a partnership firm can be ______.
  • 10
  • 20
  • 50
  • 100
The maximum number of partners in partnership firm is determined by__________.
  • Companies Act
  • Partnership Act
  • Limitation Act
  • None of the above
State with reasons whether the following statements are True or False.
In a partnership firm, the liability of partners is unlimited.
  • True
  • False
Business is treated as a separate entity accounts for ______________.
  • Limited Liability Partnership
  • Partnership
  • Company
  • All of the above
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