CBSE Class 11 Business Studies Forms Of Business Organizations MCQs

Question : In how many days the amount of minimum subscription must be received
(a) Within 120 days of the date of issue.
(b) Within 110 days of the date of issue.
(c) Within 10 weeks of the date of issue
(d) Within 3 weeks of the date of issue.
Answer : A

Question : A company cannot come into existence without
(a) Getting certificate of incorporation.
(b) Electing directors.
(c) Issuing prospectus.
(d) All of the options.
Answer : A

Question : A prospectus is issued by
(a) A public company seeking investment, from public.
(b) A private company
(c) A public company.
(d) A public enterprise
Answer : A

Question : The maximum number of partners allowed in the banking business are
(a) Ten
(b) No limit
(c) Twenty
(d) Two.
Answer : A

Question : Provision of residential Accommodation to the members at reasonable rates is the objective of:
(a) Housing Cooperative
(b) Producers Cooperative.
(c) Sleeping Partner.
(d) Credit Cooperative
Answer : A

Question : A company cannot came into existence without
(a) Issuing prospectus
(b) Electing directors
(c) Certificate of incorporation
(d) All of the options.
Answer : A

Question : Which of the following contract is signed by the promoters with the third party on behalf of the proposed company?
(a) Preliminary contracts
(b) Provisional contract
(c) Prospectus
(d) Memorandum of association
Answer : A

Question : Which one of the following is the CORRECT sequence of stages in the formation of a company?
(a) Promotion, incorporation, capital subscription, commencement of business
(b) Incorporation, capital subscription, promotion , commencement of business
(c) Promotion, commencement of business, incorporation , capital subscription
(d) Promotion, Incorporation, Certificate of commencement, capital subscription
Answer : A

Question : Which of the following cooperative society is established to help small producers in selling their products?
(a) Producer cooperative society
(b) Marketing cooperative society
(c) Credit cooperative society
(d) Consumers cooperative society
Answer : A

Question : Which of the following statement is NOT true about a minor partner?
(a) He has to bear losses also
(b) He can inspect books of accounts
(c) He has an option to continue with a firm even after attaining majority
(d) He shares only profits.
Answer : A

Question : A prospectus is issued by
(a) Public company
(b) Private company
(c) Statutory Corporation
(d) Departmental undertaking
Answer : A

Question : Application for approval of name of a company is to be made to which authority?
(a) Registrar of the company
(b) SEBI
(c) Government of India
(d) State Government
Answer : A

Question : In a cooperative society, the principle followed is
(a) One man one vote
(b) Multiple votes by members
(c) One share one vote
(d) No voting rights to members
Answer : A

Question : The board of directors of a joint stock company are elected by
(a) Shareholders
(b) Employees
(c) General public
(d) Government
Answer : A

Question : Romi is a friend of Somi who is a partner in a software firm Simplex Solutions. On Somis request, Romi accompanies her to a business meeting with Mohan softwares and actively participates in the negotiation process for the business deal and gives the impression that she is also a partner in Simplex Solutions. Which type of partner is Romi?
(a) Partner by estoppel
(b) Active Partner
(c) Partner by holding out
(d) Nominal Partner
Answer : A

Question : Which of the following forms of business enterprises suffer from lack of public confidence because they are not required to publish its accounts legally?
(a) Partnership
(b) Cooperative Society
(c) Company
(d) None of the options
Answer : A

Question : Every partner is both an agent and a principal. Identify the characteristic of partnership being referred here.
(a) Mutual Agency
(b) Risk Bearing
(c) Membership
(d) Formation
Answer : A

Question : Which of the following is the relation between persons who have agreed to share the profit of the business carried on by all or any one of them acting for all.?
(a) Partnership
(b) Cooperative Society
(c) Joint Hindu family business
(d) Sole Proprietorship
Answer : A

Question : Which of the following is a specific form of business organization where membership is by birth?
(a) Hindu Undivided Family
(b) Sole Proprietorship
(c) Cooperative Societies
(d) Government Company
Answer : A

Question : Which of the following systems allows both male and female members of the family to be coparceners?
(a) Mitakashara
(b) Mutual Agency
(c) Dayabhaga
(d) Particular Partnership
Answer : A

Question : Which of the following business enterprises does not have a separate legal entity?
(a) Sole Proprietorship
(b) Partnership
(c) Company
(d) Cooperative Society
Answer : A

Question : What do you understand by the term unlimited liability?
(a) The personal assets of owner can be sold when the assets of the business are not enough to
(b) The personal assets of owner cannot be sold at all.
(c) The personal assets of owner can be sold, according to the wish of the creditors
(d) The personal assets of owner can be sold, only to a limited extent.
Answer : A

Question : The members of which of the following business organizations do not have limited liability?
(a) Sole Proprietorship
(b) Joint Stock Company
(c) Cooperative Societies
(d) Government Company
Answer : A

Question : It is a form of business organization which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks. Identify the concept.
(a) Sole Proprietorship
(b) Cooperative Society
(c) Joint Hindu family business
(d) Partnership
Answer : A

Question. Which of the following statement is NOT true about a minor partner?
(a) He has to bear losses also
(b) He can inspect books of accounts
(c) He has an option to continue with a firm even after attaining majority
(d) He shares only profits
Answer : A

Question. Which of the following contract is signed by the promoters with the third party on behalf of the proposed company?
(a) Preliminary contracts
(b) Provisional contract
(c) Prospectus
(d) Memorandum of association
Answer : A

Question. Which of the following business enterprises does not have a separate legal entity?
(a) Sole Proprietorship
(b) Partnership
(c) Company
(d) Cooperative Society
Answer : A

Question. Which of the following cooperative society is established to help small producers in selling their products?
(a) Producer cooperative society
(b) Marketing cooperative society
(c) Credit cooperative society
(d) Consumers cooperative society
Answer : A

Question. At least 10 adults, no maximum limit in case of ________
(a) Joint Hindu Family
(b) Cooperative Society
(c) Company
(d) Partnership
Answer : B

Question 11. What do you understand by the term unlimited liability?
(a) The personal assets of the owner can be sold when the assets of the business are not enough to
(b) The personal assets of the owner cannot be sold at all
(c) The personal assets of the owner can be sold, according to the wish of the creditors
(d) The personal assets of the owner can be sold, only to a limited extent
Answer : A
 

Question. Hindu Succession Act was passed in _____________
(a) 1960
(b) 1956
(c) 1952
(d) 1932
Answer : B

Question. A partner whose association with the firm is unknown to the general public is called
(a) Active partner
(b) Nominal partner
(c) Secret partner
(d) Sleeping partner
Answer : C

Question. A company cannot come into existence without
(a) Issuing prospectus
(b) Electing directors
(c) Certificate of incorporation
(d) All of the above
Answer : C

Question. Which of the following is not a feature of a Joint Stock Company?
(a) Artificial person
(b) Separate legal entity
(c) Formation
(d) Lack of business continuity
Answer : D

Question. The partnership deed generally includes the following
(a) Name of firm
(b) Nature of business
(c) Location of business
(d) All of the above
Answer : D

Question. A prospectus is issued by
(a) A public company seeking investment, from public
(b) A private company
(c) A public company
(d) A public enterprise
Answer : A