MCQ Based Questions on Class 11 Business studies for chapter-2 Form of Business organization
Find below MCQ Based Questions on Class 11 Business studies for chapter-2 Form of the Business organization all the MCQ questions are explained with correct answers and explanations. To check the correct answer click on the answer.
Find MCQ questions for class 11 Business studies-2 Form of Business organization
Business Studies - MCQ on Form of Business organization
Class XI
Q1. The member of Joint Hindu Family can be acquired
I. By Contract
II. By Agreement
III. By Birth
IV. None of these
Answer:
By Birth
Explanation: Three successive generations can e members in business in Joint Hindu Family
Q2. The in charge off joint Hindu family is known as
I. Managing Partner
II. Karta
III. Proprietor
IV. None of these
Answer:
Karta
Explanation: The business is controlled by the head of the family who is the eldest member and is called karta.
Q3. The liability of member of joint Hindu family is
I. Unlimited
II. Limited to the extract of property
III. Limited up to share of profits
IV. None of these
Answer:
Limited to the extract of property
Explanation: The liability of all members except the karta is limited to their share of property of the business.
Q4. Liability in partnership is
I. Unlimited
II. Limited
III. Secure
IV. None of these
Answer:
Unlimited
Explanation: The partners of a firm have unlimited liability. Personal assets may be used for repaying debts in case the business assets are insufficient.
Q5. Joint sector undertaking use government as well as private
I. Resources
II. Sector
III. Enterprises
IV. None of these
Answer:
Resources
Explanation: Joint sectors take benefits for growth.
Q5. Government companies are registered under:
I. Company Law
II. Joint Stock Companies
III. Income Tax
IV. Company Act 1956
Answer:
Company Act 1956
Explanation: Company Act 1956 enables to get company registered for government.
Q 6. A sole trade business is started by
I. At least two persons a
II. Any one person
III. At least seven person
IV. None of these
Answer:
Any one person
Explanation: A sole proprietorship require only one person to start business
Q7.The liability of sole trader is
I. Limited only o the investor in the business
II. Limited to total property of the business
III. Unlimited
IV. None of these
Answer:
Limited to total property of the business
Explanation: The liability is limited up to the capital invested of the investor
Q8. A sole trader and his business exist
I. Independently
II. Together
III. For others
IV. None of these
Answer:
Independently
Explanation: A sole proprietor is independent in nature
Q9. A sole trader can take following steps while expanding his business
I. Employ a servant
II. Take a partner
III. Employ a servant & Take a partner
IV. None of these
Answer:
Employ a servant
Explanation: As it requires only one person so rest f the help can e taken from the servant
Q10.Sole proprietorship is suitable for
I. Large scale concerns
II. Medium scale concerns
III. Small scale concerns
IV. None of these
Answer:
Small scale concerns
Explanation: Generally sole proprietor ship I suitable for Small scale concerns
Because scope is limited in large companies activities are much more and it becomes difficult to handle.
Q11.Sole Trade Business helps in
I. Concentration of wealth
II. Diffusion of wealth
III. Both
IV. None of these
Answer:
Diffusion of wealth
Explanation: Through sole trade business flow of wealth is developed
Q12. Decision making in sole trade business is:
I. Quick
II. Slow
III. Neither very quick
IV. Nor very slow
Answer:
Quick
Explanation: Decision making is very quick because the owner is the only decision maker he can decide according o his convenience
Q13. A sole trader has
I. Unlimited resources
II. Limited sources
III. Sufficient resources
IV. None of these
Answer:
Limited resources
Explanation: He is the whole and sole owner and generally this business is convenient for small scale so he use resources according to his needs.
Q14. A sole Trader
I. Cannot keep his business secrets
II. Can keep his business secrets
III. None
IV. All of them
Answer:
Can keep his business secrets
Explanation: As there is no involvement and he is the owner so he can keep business secret up to him
Q15. There is separation of ownership and management in
I. Sole proprietorship
II. Partnership
III. Company
IV. All business organizations
Answer:
All business organizations
Explanation: Ownership and management are two different aspects of business
Q16.The karta in Joint Hindu family business has
I. Limited liability
II. Unlimited liability
III. No liability for debts
IV. Joint liability
Answer:
unlimited liability
Explanation: All the members in the family has limited liability up to property but karta has unlimited liability
Q17. What principle is followed in a cooperative society?
I. One share one vote
II. One man one vote
III. No vote
IV. Multiple votes
Answer:
One man one vote
Explanation: To choose the secretary only one vote from one member is allowed
Q18. The board of directors of a joint stock company is elected by
I. General public
II. Government bodies
III. Shareholders
IV. Employees
Answer:
Shareholders
Explanation: Shareholders of a company have right to choose the Directors who will provide a guideline to functions
Q19. The maximum number of partners allowed in the banking business is
I. Twenty
II. Ten
III. No limit
IV. Two
Answer:
Two
Explanation: The maximum number of partners allowed in a banking business is Two.
Q20. Profits do not have to be shared. This statement refers to
I. Partnership
II. Joint Hindu family business
III. Sole proprietorship
IV. Company
Answer:
Sole proprietorship
Explanation: A sole proprietorship has only one person business so he does not have to share any profit
Q21.The capital of a company is divided into number of parts each one of
Which are called?
I. Dividend
II. Profit
III. Interest
IV. Share
Answer:
. Share
Explanation: A share is a part of capital in a company which is divided into number of units
Q22. Provision of residential accommodation to the members at reasonable
Rates is the objective of
I. Producer’s cooperative
II. Consumer’s cooperative
III. Housing cooperative
IV. Credit cooperative
Answer:
. Consumer’s cooperative
Explanation: Co-operatives is a mean to provide products to members at reasonable rates.
Q23 A partner whose association with the firm is unknown to the general
Public is called
I. Active partner
II. Sleeping partner
III. Nominal partner
IV. Secret partner
Answer:
Sleeping Partner.
Explanation: Sleeping partner usually does not take active part in daily activities of the business.
Q24. For which of the following types of business do you think a sole
Proprietorship form of organization would be more suitable, and why?
I. Grocery store
II. Shipping
III. Banking
IV. Infrastructure
Answer:
Grocery store
Explanation:All other firms are very big and sole proprietor is suited for a small firm
Q25. For which of the following types of business do you think a partnership
Form of organization would be more suitable, and why?
I. Medical clinic
II. Legal consultancy
III. Infrastructure
IV. None
Answer:
Infrastructure
Explanation: . Infrastructure is a operated on a very large scale so it is better to opt for partnership.
Q26. A partnership concern can be registered under partnership act of
I. 1949
II. 1956
III. 1932
IV. None of these
Answer:
. 1932
Explanation: The partnership act was formed in the year 1932
Q27.A partnership can be formed by at least
I. Two persons
II. Three persons
III. Seven persons
IV. None
Answer:
. Two persons
Explanation: Minimum two persons are required o form a partnership firm
Q 28. In partnership liability of a partner is
I. Limited up to capital
II. Limited up to their profits
III. Unlimited
IV. Limited up to their profits
Answer:
Limited
Explanation: Whatever the company will earn the profit the partners are liable for that.
Q29. A partner does not take part into working of concern is called
I. Nominal Partner
II. Sleeping Partner
III. Partner by estoppels
IV. None of these
Answer:
Sleeping Partner
Explanation: Although he is a partner but he don’t work for the company and he is considered as sleeping partner
Q30.Under Indian contract act an agreement with minor is
I. Valid
II. Void
III. Enforceable
IV. None of these
Answer:
Void
Explanation: It is clearly mentioned in partnership Act 1932 that any agreement wit minor is void
Q31. Registration of partnership is
I. Compulsory
II. Voluntary
III. Not Needed
IV. None of the above
Answer:
Compulsory
Explanation: A partnership firm is formed legally only when it is registered
Q32. The ownership of property by more than one owner is called
I. Partnership
II. Co ownership
III. Partnership
IV. None
Answer:
Partnership
Explanation: When more than one person and less than seven people enter into an agreement it falls under Partnership act.
Q33. When two persons start business together and share profits and losses is called
I. partnership
II. Sole proprietorship
III. Public limited
IV. Private limited
Answer:
Partnership
Explanation: When more than one person and less than seven people enter into an agreement it falls under Partnership act.
Q34. In partnership there exists relationship of
I. Principal and agent
II. Owner and servant
III. Employer and employee
IV. All
Answer:
Principal and agent
Explanation: Every partner is a proprietor as well as an agent of af firm.
Q35. A special partner’s liability is
I. Unlimited
II. Limited
III. Not Liable
IV. None
Answer:
Not Liable
Explanation: Special partner is not a part of daily activities; he is nominated for promotion and endorsing of business only.
Q36. Profit sharing is based
I. On contribution of capital
II. On extent of responsibility
III. On contract among partners
IV. None
Answer:
On contract
Explanation: Profit will be base on the terms and conditions formed by the partner while forming partnership firm it is clearly mentioned in partnership deed
Q37.A private limited company must have at least
I. Three Persons
II. Seven Persons
III. None
IV. Two persons
Two persons
Answer:
To form a private company minimum two members are required
Explanation:
Q38. A public limited company must have at least
I. Seven Persons
II. Ten persons
III. Twenty Persons
IV. Two persons
Answer:
Seven persons
Explanation: To form a private company minimum seven members are required
Q39. Private limited companies
I. Allow transfer of share
II. Does not Allow transfer of share
III. Allow transfer of share with consent of shareholder
IV. None
Answer:
Does not Allow transfer of share
Explanation: Shares cannot be transferred to other person
Q40. An Indian Company is one whose
I. Business is situated in India
II. Whose majority shares are held by Indians
III. Incorporated in India
IV. None
Answer:
Incorporated in India
Explanation: The Company which is based in India is incorporated in India under Indian Company Act.
Q41. The primary aim of cooperative is to
I. Earn more profits
II. Serve members
III. Raise production
IV. None
Answer:
Serve member
Explanation: The cooperative society is a voluntary association of persons, who join together with the motive of welfare of the members.
Q42. Membership of cooperative is
I. Compulsory
II. Voluntary
III. Not essential
IV. Temporary
Answer:
Voluntary
Explanation: It’s a voluntary association for the development of particular sector and people can extend their helping hand for it.
Q43. Which of the following organization is not governed by specific act.
I. Partnership
II. Co-operative
III. Sole proprietor
IV. Company
Answer:
Sole proprietor
Explanation: No specific laws have been laid down by the government because of the individual entitlement and limited liabilities and recourses.
Q44. What is the maximum number of member to form an organization.
I. 2
II. 7
III. 10
IV. Unlimited
Answer:
Unlimited.
Explanation: As per company act only min number enrolment is applicable.
Q45. How a partnership firm can winded up.
I. At will
II. At company act
III. Forced
IV. Co-operative act
Answer:
At Will
Explanation:: The business can be unwinded on the consent of the partners.
Q46. Which one of the of the statement is not true for sole proprietorship.
Sole trader has limited liability
No legal formality is required to start a business
It is the oldest form of business
Sole trader can guard his secrets.
Answer:
Sole trader has limited liability
Explanation: Sole proprietor has unlimited liabilities.
Q47. Profit sharing in partnership firm is based on.
I. On the contribution of capital
II. On the extent of responsibility undertaken.
III. On contract among partners
IV. None of these.
Answer:
On contract among partners.
Explanation: Having various types of partners contracts among partner is only way to distribute profit.
Q48. Which act regulates Joint Hindu Family Firm?
I. Hindu Law
II. Companies Act 1956
III. Hindu Law and Hindu Succession Act 1956
IV. Partnership Act
Answer:
Hindu Law and Hindu Succession Act 1956
Explanation: It was formed to regulate Hindu Families business and all he firs formed as Joint Hindu Family business is regulated by this act
Q49.For taking decisions in a partnership whose consent is required
I. Board of Directors
II. Special Partners
III. All Partners
IV. Managing Committee
Answer:
All Partners
Explanation: A decision in a partnership firm cannot be taken without consent of all active partners
Q50.What is the minimum number of members in a cooperative society?
I. 2
II. 7
III. 10
IV. No limit
Answer:
10
Explanation: According to Cooperative societies Act 1912 minimum members of a cooperative is 10