CBSE Class 11 Business Studies Forms of Business Organisation VBQs read and download in pdf. Value Based Questions come in exams for Business Studies in Class 11 and are easy to learn and helpful in scoring good marks. You can refer to more chapter wise VBQs for Class 11 Business Studies and also get latest topic wise very useful study material as per latest NCERT book for Class 11 Business Studies and all other subjects for free on Studiestoday designed as per latest Class 11 CBSE, NCERT and KVS syllabus and examination pattern
VBQ for Class 11 Business Studies Chapter 2 Forms of Business Organisation
Class 11 Business Studies students should refer to the following value based questions with answers for Chapter 2 Forms of Business Organisation in Class 11. These VBQ questions with answers for Class 11 Business Studies will come in exams and help you to score good marks
Chapter 2 Forms of Business Organisation VBQ Questions Class 11 Business Studies with Answers
Very Short Answer Type Questions
Question : Name the form of business organisation which can be formed by an oral agreement between the members.
Answer : Partnership. G.S. ALAG
Question : State the law which governs the partnership business in India.
Answer : The Indian Partnership Act, 1932.
Question : What is the maximum number of partners in a partnership firm carrying on
(a) banking business,
(b) non-banking business?
Answer : (a) Banking business-10. (b) Non-banking business-20.
Question : Define partnership deed.
Answer : The document containing the terms and conditions of the partnership agreement is called partnership deed.
Question : What is the liability of partners?
Answer : Unlimited, i.e., they may have to sell their personal assets to pay back the debts of the firm.
Question : Name the type of partnership which is setup to complete a particular project for a specified time period.
Answer : Particular partnership.
Question : Name the type of partner who contributes capital and also takes active participation in the management of the firm.
Answer : Active partner.
Question : Name the partner whose association with the firm is not known to the general public.
Answer : Secret partner.
Question : Name the partner who does not have interest in the partnership business but lends his name to the firm.
Answer : Nominal partner.
Question : Name any two types of partners who neither contribute capial nor share profits or losses.
Answer : (a) Nominal partner. (b) Partner by estoppel.
Question : Is it compulsory for a partnership firm to get it registered?
Answer : No.
Question : What will be the adverse impact on the partners of a firm if a partnership firm is not registered?
Answer : The partners cannot file a suit against the firm or any other partner.
Question : Name the form of business organisation which is established with the motive of welfare of the members.
Answer : Cooperative society.
Question : Name the business organisation which is not formed for making profits.
Answer : Cooperative society.
Question : Is it compulsory for a cooperative society to get themselves registered?
Answer : Yes, registration of cooperative societies is compulsory under the Cooperative Societies Act, 1912.
Question : Name the type of cooperative society formed to protect the interest of small producers.
Answer : Producers’ cooperative societies.
Question : Teachers of different schools in West Delhi form a society to purchase land and construct flats for its members. Identify this form of business organisation.
Answer : Cooperative society (cooperative housing society).
Question : Which form of business organisation is said to be an artificial legal person?
Answer : Joint stock company.
Question : State the law which governs the company form of organisation in India.
Answer : The Companies Act, 2013.
Question : Why is a company called an artificial person?
Answer : A company is called an artificial person because it does have a physical body of a natural human being. It cannot breath, drink, eat and so on.
Question :“A company has perpetual succession.” Comment.
Answer : The existence of a company is not affected by the death, insanity, retirement or insolvency of any member.
Question : Name two types of companies.
Answer : (a) Public company. (b) Private company.
Question : Which type of company is required to issue a prospectus?
Answer : Public company.
Question : Who manages and controls the affairs of the company?
Answer : Board of Directors.
Question : Which characteristic of a company states that the existence of a company is not affected by the coming and going of the members?
Answer : Perpetual succession.
Question : Name the type of company in which the right of members to transfer its shares is restricted.
Answer : Private company.
Question : List the minimum number of directors required in case of private and public company.
Answer : (a) Private company-2. (b) Public company-3.
Question : “In spite of not being a partner, he becomes liable to third parties for the repayment of the firm’s debts.” By what name such a person is known?
Answer : Nominal partner.
Question : Name the type of cooperative society established to help the small producers in selling their products.
Answer : Marketing cooperative society.
Question : Define Quorum.
Answer : Quorum means the minimum number of members present in a general meeting. In case of private company, Quorum-Two. In case of public company, Quorum-Five.
Question : Mention the various stages of formation of a company.
Answer : (a) Promotion. (b) Incorporation.
(c) Subscription of capital. (d) Commencement of business.
Question : Who analyse the prospects of a business opportunity and brings together the various resources and managerial abilities to form a company?
Answer : Promoter.
Question : What is the main function of a promoter?
Answer : Identification of business opportunity.
Question : Alag Industries intends to open retail stores in every locality, but is not sure of profitability due to tough competition. Do you think the business opportunity is feasible?
Answer : No, the business lacks economic feasibility.
Question : What is meant by incorporation of a company?
Answer : Incorporation of a company means the registration of the company as a body corporate.
Question : When can a private company commence its business?
Answer : A private company can commence its business after its incorporation.
Question : When can a public company commence business?
Answer : A public company can commence business only after obtaining ‘Certificate of Commencement of Business’.
Question : At which stage in the formation of a company doest it interact with SEBI?
Answer : Capital subscription stage.
Question : Name the statement containing the names and addresses of shareholders and the number of shares allotted to each.
Answer : Return of Allotment.
Question : How can one identify from the name of the company that whether it is a public company or a private company?
Answer : The name of a public company always ends with the word ‘Ltd.’. For example, (a) Wipro Ltd.
(b) Tata Iron and Steel Company Ltd. The name of a private company always ends with the word ‘Pvt. Ltd.’ For example,
(a) Hyundai Motors India Pvt. Ltd. (b) Nirma Chemicals Pvt. Ltd.
Question : The coconut farmers in a Village decided to form a business organisation for the purpose of marketing their products. Which form of business is most suitable to them? Explain its any four features.
Answer : Cooperative societies. For its features.
Question : Now a days paddy cultivators face a lot of problems for marketing their paddy yield. Identify the type of cooperative society which can help the farmers.
Answer : Marketing cooperative societies.
True/False Answer Questions
1. It is necessary to get every company incorporated, whether private or public. True
2. Statement in lieu of prospectus can be filed by a public company going for a public issue. False
3. A private company can commence business after incorporation. True
4. Experts who help promoters in the promotion of a company are also called promoters. False
5. A company can ratify preliminary contracts after incorporation. True
6. If a company is registered on the basis of fictitious names, its incorporation is invalid. False
7. ‘Articles of Association’ is the main document of a company. False
8. Every company must file Articles of Association. False
9. A provisional contract is signed by promoters before the incorporation of the company. False
10. If a company suffers heavy issues and its assets are not enough to payoff its liabilities, the balance can be recovered from the private assets of its members. False
Short /Long Answer Type Questions
Question : Mr. Sumit owns an ancestral house in Chennai. On the advise of his friend he converts it into a lodge after renovation. The revenue from the lodge helps to supplement his income considerably.
On his death the property (lodge) is inherited by his three sons in order of their age namely, Mr. Sham, Mr. Anil and Mr. Satish who carry on with the business under the form of Joint Hindu Family Business.
(i) Which law governs Joint Hindu Family Business.
(ii) Who amongst the three brothers has the right to exercise control over the family business?
(iii) Comment upon the liability of the three brothers.
Answer : (i) Hindu Succession Act, 1956
(ii) The eldest son, Mr. Sham has the right to exercise control over the family business of the Karta.
(iii) The liability of Mr. Sham (Karta) is unlimited. The liability of Mr. Anil and Mr. Satish as coparceners is limited to the extent of their share in the family business,.
Question : Sanchit, Hemant and Akshay have mutually decided to establish a new small scale handicraft factory in a remote rural area in Jharkhand. As it will not only help to meet the growing demand for their products but also generate different kinds of employment opportunities in the village and foster its economic development. They have decided to promote their business in the form of partnership. Sanchit’s association with the firm will be hidden from the general public. Akshay will not take part in the day to day activities of the business due to health issues. However, Hemant will take actual part in carrying out business of the firm on behalf of other partners.
(i) Identify and state any three types of partners highlighted in the above case.
(ii) Write any two values which are being fulfilled by the firm.
Answer : (i) (a) Sanchit — Secret partner
(b) Hemant — Active partner
(c) Akshay — Sleeping partner
(ii) The two values which are being fulfilled by the firm are :
(a) Generating employment opportunities
(b) Raising standard of living.
Question : Aseem is doing an export business. Every time he would obtain an export order, he felt stressed and had an anxiety about completing it on time. Few years later, his younger sister Aalia, after completing a course in fashion designing, joined him in business as a partner. Consequently,
Aseem realised that his level of stress and anxiety related to business operations had reduced substantially and he had started feeling more relaxed. However, at the same time he noticed that since both of them differ in their choice of colours for making garments lot of time is being wasted in reaching a mutual consent.
(i) Identify and state the related advantage of partnership being highlighted in the above case.
(ii) Identify and state the related disadvantage of partnership being discussed in the above case.
Answer : (i) Sharing of risks.
(ii) Possibility of conflicts.
Question : Yasin started a catering business 5 years back. Due to perpetual losses in business he has now decided to shut down his business. He owes RS. 5 lakhs to a supplier from whom he had been procuring goods on credit. His business funds are insufficient to repay the debt. Can supplier recover his dues from the personal assets of Yasin since the business assets are insufficient. Why or why not? Give a suitable reason in support of your answer?
Answer : Yes, the supplier can surely recover his dues from the personal assets of Yasin since the business
assets are insufficient. This is due to the fact that the liability of a sole proprietor is unlimited.
In the eyes of law, the sole proprietor and his business are same.
Question : BSE Limited is the owner and operator of BSE Exchange (Bombay Stock Exchange), India’s largest stock exchange by number of companies listed. The Bombay Stock Exchange was established in year 1875 as the first stock exchange in Asia. Today, BSE has over 5000 companies listed on it, the highest in any exchange around the world.
(i) When and why is a company supposed to make an application to one or more recognised stock exchanges?
(ii) Can the stock exchange reject the application of a company for listing of securities? What are its consequences?
Answer : (i) A public company desirous to raise funds from the public by means of issue of shares and debentures has to make an application to one or more recognised stock exchanges for permission to deal in its shares or debentures.
(ii) Yes, the stock exchange may reject the application of a company for listing of securities if the required specifications are not being fulfilled.
If such permission is not granted within 10 weeks from the date of closure of subscription list, then the allotment will become void. Consequently, all money received from the applicants will have to be returned to them within 8 days.
Question : Shenoy is an old person. He is living in a small town with his wife and family. He along with his family members are engaged in a family business. They make jute bags and sell it in the nearby market. They purchase the raw material from the local market. Shenoy manages his business very well as others support him in all ways. Name the form of business organisation discussed here. State any three characteristics of the same.
Answer : Hindu Undivided Family Business. For characteristics.
Question : Nikita wanted to pitch in to reduce the financial crisis prevailing in her house and thought of working as a cook. She started working in three different households, one Punjabi, One Gujarati and one South Indian family. She soon realised that all the three households had different cuisine. It was indeed a challenge for her to learn the techniques of the cuisine. All the families greatly appreciated the timeframe within which she had mastered the local cuisine. After working for them for a year, she decides to open a small eating joint of her own along with two of her friends by the name ‘Hum Sabi Ki Rasoi’. They decided to share profits equally and that each of them will be liable for acts performed by the other two. Soon the eatery became a hot spot because of the fusion platter which was being offered.
(a) Identify and define the kind of business organisation which was set up by Nitika and her friends.
(b) Quoting the lines from the paragraph, identify the features of this form of business organisation highlighted above.
Answer : (a) Partnership.
(b) (i) Risk Bearing and sharing of profits.
‘They decided to share profits equally...’
(ii) Mutual Agency.
‘... and that ... by the other two.’
(iii) Membership.
‘After working ... by the name ‘Hum Sab Ki Rasoi.’
Question : After doing her M.Com from ‘Himachal Pradesh University of Shimla’, Payal went back to her village in Kinnaur district of Himachal Pradesh. She wanted to contribute for the development of women of her village, so she formed an organisation, the membership of which was open for all the women villagers on a voluntary basis by paying Rs. 500 only which will be treated as their capital. Payal knew that the land of her village was suitable for the farming of medicinal plants.
So she motivated the members of her organisation for growing medicinal plants in their fields under the guidance and help of the local agricultural department. It was also decided that the organisation will purchase the produce of each member and sell the same to drug manufacturing companies at a very good price which was not possible for the members individually. The main objective of the organisation is to render services to its members rather than to earn profit.
A computer training center for young boys and girls of the village was started under the guidance of Payal from the surplus of the profits.
(a) Identify the kind of organisation that was formed by Payal.
(b) State its any three merits.
Answer : (a) Cooperative Societies.
Question : Lakshay has set up a cement company on 10th January, 2017. He has got has company registered under Companies Act, 2013. From the day of its incorporation, it acquires an identity separate from its members. Like natural persons, it can own property, incur debts, borrow money and enter into contracts. The Board of Directors of the company will appoint top officials for running the business.
Identify the four features of company form of organisation highlighted above by quoting the lines.
Answer : (a) Formation
‘He has got his company registered under Companies Act, 2013.’
(b) Separate Legal Entity
‘From the day of its incorporation it acquires an identity separate from its members.’
(c) Artificial Person
‘Like natural persons, it can own property, incur debts, borrow money and enter into contracts.’
(d) Control
‘The Board of Directors of the company will appoint top officials for running the business.’
Question : Nitin is a friend of Rohan, who is the partner of a firm, ‘Badshah Builders’. Nitin accompanies Rohan for a business meeting with another firm Virat Constructions. During this business meeting, Nitin actively participates and Virat Constructions enter into a contract with Badshah Builders, thinking that Nitin is a partner of the firm. What type of a partner is Nitin? Explain .
Answer : Niting is partner by estoppel.
Question : Mayank a gorcery store owner, has won a lottery of Rs. 1,00,000. His friend, Yash suggested him to invest this money in the shares of Progressive Ltd. as he too is the shareholder of this company. But Mayank wants to invest this money for expansion of his business after a period
of 2 years. Yash tries to convince Mayank by saying that he can easily sell his shares in the market and convert them into cash when need arises.
Name and state the merit of joint stock company highlighted in the above para. Explain other two mertis of the same.
Answer : Transfer of Interests.
Question : Kapoor brothers formed a Joint Hindu Family business.There were three brothers and the eldest of them Ramesh Kapoor became the Karta. The business took a loan of Rs. 40 lakhs for three years but were unable to repay it due to poor financial condition of the business. They sold an ancestral property worth Rs. 25 lakhs and paid to bank. The bank filed a case of recovery for the balance amount. Ramesh Kapoor pleaded to the court that the loan was taken for the business purpose, so all member are liable to repay it. The court rejected the plea of Ramesh Kapoor.
(a) Why did court rejected the plea of Ramesh Kapoor?
(b) In this case who has unlimited and limited liability?
(c) Was the decision of court to claim only from Ramesh Kapoor justified?
Answer : (a) Because Ramesh Kapoor being karta has unlimited liability.
(b) Ramesh Kapoor-unlimited and all other members have limited liability.
(c) Yes as Ramesh Kapoor has unlimited liability.
Question : After passing his 12th class Shenoy started his own business. He invested Rs. 2,00,000 as capital which was given to him by his father. He obtained a loan of Rs. 1,00,000 from his elder brother Gurpreet, who was working as an assistant manager in ICICI Bank. In the first year he incurred a loss of Rs. 50,000 and had to pay to his suppliers their outstanding bills. This created a financial problem for him and he had to take loan of Rs. 1,00,000 from the ICICI Bank on the personal guarantee of his brother. He started doing hard work, lowered the prices and informed his
customers about the qualities of goods sold by him. Because of this the sales increased four times and he earned a net profit of Rs. 75,000 in the second year.
(a) Identify the form of business organisation started by Shenoy.
(b) What type of liability Shenoy has?
(c) Will his father & brother will be responsible to pay back the amount to outsiders.
(d) State any two features of such form of business organisation.
Answer : (a) Sole Proprietorship. (b) Unlimited liability.
(c) No. (d) Features.
Question : Mr. Deepak Wadhwa and his brothers inherited some ancestral property. They had a joint family. They decided to start a business in which, only the family members will be participating. They took a loan of Rs. 50,00,000 from Axis Bank. But they were unable to repay the loan. And they also invested their ancestral property into business. Mr. Deepak being eldest, is entrusted with the job of taking decisions for the business.
(a) What is the form of business Wadhwa family has started?
(b) By what name is the senior most member of the family known as?
(c) What is the nature of liability of the senior most member and other members?
(d) By what name the other members are known in this particular form of business?
(e) After the death of senior member, will the business comes to an end?
Answer : (a) Hindu Undivided Family Business.
(b) Karta.
(c) Senior-unlimited liability. Others-limited liability.
(d) Co-parceners.
(e) No. After the death of Karta, next senior member becomes Karta.
Question : Batra Pvt. Ltd., the known group of promoters submitted an application to the registrar of companies for the approval of the name for cosmetic manufacturing company. They selected “Avon Ltd.” as the name of the company so as to increase the sales of the newly opened company, as it will be benefited by the name of already existing company.
(a) Which function of promoter is being referred here?
(b) Who selects the name for the company?
(c) Would the proposed name be accepted by the Registrar of Companies?
(d) Identify the value being violated by Batra Pvt. Ltd.
Answer : (a) Name approval.
(b) Promoters.
(c) No, the proposed name should not be identical with the existing company.
(d) Values:
(i) Respect of Law.
(ii) Integrity.
Question : Ketan, Piyush and Sakshi were partners. Piyush died in a car accident. Both Ketan and Sakshi decided to admit their son Sahil who was 16 years old as a partner. Can they do so? Give reason.
Answer : Yes, he can be admitted as a partner under ‘Minor Partner’.
Question : Varun, Akshit and Prachi were friends who started a partnership business. They did not get their firm registered as it was optional. Soon, Akshit and Prachi started having conflicts. Akshit wanted to approach a lawyer. If you were a lawyer than how would you guide him?
Answer : I would guide him by saying that you cannot file a complaint because a partner of an unregistered firm cannot file a case against the firm or any other past or present partner.
Question : “Everyday Amul collects milk from 2.12 million farmers (many illiterate) and converts the milk into branded packaged products and delivers goods all over the country. The story of Amul started in Dec, 1946 with a group of farmers been to free themselves from intermediaries, gain access to the market and thereby ensure maximum returns for their efforts.”
(a) From the above description, identify and state the form of business organisation used by Amul.
(b) State any two features of this form of business organisation.
(c) Identify and state Amul is a part of which type of industry.
Answer : (a) Cooperative Societies.
(b) For its features.
(c) Secondary Industry-Processing Industry.
Question : For which of the following types of business do you think a sole proprietorship form of organisation would be more suitable, and why?
(a) Grocery store. (b) Medical store.
(c) Legal consultancy. (d) Craft centre.
(e) Internet cafe. (f) Chartered accountancy firm.
Answer : a, b, d, and e.
Reasons:
(a) These businesses are carried out on small scale.
(b) These businesses require limited capital and limited managerial talent.
(c) In these businesses customers demand personalised services.
(d) In these businesses, risk is less.
Question : “One man control is the best in the world if that man is big enough to manage everything.”
Explain the statement by giving any five reasons.
Answer : Explain the merits of Sole Proprietorship.
Question : The business assets of an organisation amount to RS. 1,00,000 but the debts that remain unpaid are RS. 1,50,000. What course of action can the creditors take if :
(a) The organisation is a sole proprietorship firm.
(b) The organisation is a partnership firm with Aditya and Nikhil as partners. Which of the two partners can the creditors approach for repayment of debt? Explain giving reasons.
Answer : Business assets = RS. 1,00,000;
Liabilities = RS. 1,50,000,
Therefore, Creditor’s claim = RS. 50,000
(a) If the organisation is a sole proprietorship firm, the creditors can sue the sole proprietor for RS. 50,000, because a sole proprietor has unlimited liability. In the case of business losses, if the business assets are not sufficient to meet all business liabilities, the proprietor may have to sell his personal property to payoff the liabilities.
(b) If the organisation is a partnership firm with Aditya and Nikhil as partners, the creditors can sue both the partners or a single partner for their claims. The reason is that partners have unlimited liability. They are jointly and individually liable for payment of firm’s debts. Jointly, all the partners are responsible for the payment of the firm’s debts in their profit sharing ratio. So, Aditya and Nikhil will have to pay RS. 25,000 each. Individually, a single partner (suppose Aditya) can be held responsible to repay the debts of the business RS. 50,000, if Nikhil becomes insolvent and cannot bring anything from his personal assets.
Question : Identify the type of partner highlighted in the following statements:
(a) This partner takes active part in carrying out business of the firm.
(b) His connection with the firm is not disclosed to the general public.
(c) He allows the use of his goodwill to benefit the firm and can be represented as a partner.
(d) He gives an impression of his being partner to others by his words or conduct.
(e) This partner does not take active part in the day-to-day activities of the business.
Answer : (a) Active partner.
(b) Secret partner.
(c) Nominal partner.
(d) Partner by estoppel.
(e) Sleeping partner.
Question : Name any three forms of business organisation which do not require legal formalities and registration.
Answer : (a) Sole proprietorship. (b) Joint Hindu Family Business. (c) Partnership.
Question : Which forms of business organisation is considered to be the most advantageous on the basis of:
(a) Ease of formation. (b) Continuity.
(c) Availability of capital. (d) Cost of formation.
(e) Transfer of ownership. (f) Flexibility.
Answer : (a) Sole proprietorship.
(b) Company.
(c) Company.
(d) Sole proprietorship.
(e) Company.
(f) Sole proprietorship.
Question : Is it necessary for a public company to get its shares listed on a stock exchange? What happens if a public company going for a public issue fails to apply to a stock exchange for permission to deal in its securities or fails to get such permission.
Answer : Yes, it is necessary for a public company to get its shares listed or quoted on a stock exchange.
If a company going for a public issue fails to apply to a stock exchange for permission to deal in its securities or fails to gets such permission within 10 weeks from the date of closure of subscription list, then the allotment will become void Consequently, all money received from the applicants will have to be returned to them within 8 days.
Question : Money Ltd. issues 1,00,000 shares of RS. 10 each for public subscription. Application (along with money) are received for 80,000 shares. Can the company allot these shares? Explain.
Answer : No, the company cannot allot these shares because the legal formality of ‘minimum subscription’ is not fulfilled. A company must receive the amount of minimum subscription in cash (which is 90% of the issued amount as per SEBI guidelines) within 120 days from the date of issue.
Otherwise allotment cannot be made.
Question : A promoter sells a property to the company at a price higher than he paid for it. What options does the company have?
Answer : The company can cancel the contract and recover the purchase price paid to the promoter. It can also claim damages for the loss suffered.
Reason: A promoter cannot make any secret profit at the expense of the company. He is in fiduciary relation with the company (i.e., relationship of utmost faith).
Question : Distinguish between preliminary contracts and provisional contracts.
Answer :
Question : Ms. Sheetal is running a beauty parlour in Delhi. She is the owner, manager and labourer of her business. She knows the fashion trend and gives personal attention to all her customers.
Due to this, she attracts more customers and earns high profit.
(a) Which form of business organisation is shown in the above para? Explain it.
(b) Give its any three merits.
Answer : (a) Sole proprietorship. (b) For its merits.
Question : Mrs. Ruchika is a teacher in a well-known school of Delhi. She gets Rs. 40,000 per month as remuneration for her livelihood. Her husband Mr. Sachin runs a factory in which toys are manufactured. All decisions related to the business are taken by him only. Mr. Ravi who is Sachin’s friend is a Chartered Accountant in a reputed company, also teaches some poor children free of cost after his office hours.
(a) Identify the type of human activity being performed by Mrs. Ruchika.
(b) Identify the type of business organisation mentioned above. Also state its any one merit.
(c) Identify any two values which Ravi communicated to the society.
Answer : (a) Economic activity.
(b) Sole proprietorship.
(b) Sole proprietorship.
Merit:
(i) Quick Decision Making.
(c) Values: (any two)
(i) Responsibility towards underprivileged children.
(ii) Commitment towards increasing literacy in the country.
(iii) Compassion.
(iv) Doing your best.
Question : In the recent past Sahara India Ltd. did a fraud as its top officials had put the interest of its investors at stake. Inspite of the growing realisation all over the world regarding social responsibility of business, profits play a dominant role for such businesses, In the light of the case, answer the following questions;
(a) Explain any two points which highlights the role of profit in the business.
(b) Sahara India Ltd. is a public company. How a public company is different from a private company.
(c) Give two similarities between company and cooperative societies form of business organisation on any two basis.
Answer : (a) (i) Source of Income for Businessmen : Profit is the main source of income and it provides livelihood for the businessmen who spends time and efforts to manage business.
(ii) Source of Funds for Business Growth : Just as air, water and food is essential for living similarly profit is essential for the survival, growth, diversification, modernisation, innovation and expansion of business. Profit is the life blood of any business without which it cannot survive. A part of the profits can be retained for the expansion of the business. Retention of profits, an internal source of funds, is always considered cheaper source than external sources such as banks, financial institutions etc.
(b)
Question : Nitin a tailor by profession was working in a famous boutique in Lajpat Nagar, Delhi. He was a skilled worker with many years of experience at hand and saving worth Rs. 5 lakh. He finally decided that he would start his own boutique. He rented a shop in Rajouri Garden, Delhi. He was not sure about his venture as now he would not have any security of income. But soon he started getting lot of work due to his efficiency and his profits increased.
(a) Which type of economy activity was Nitin undertaking when he was working in a boutique?
(b) Which form of business organisation did he opt for later? Also state its any two advantages and two limitations.
Answer : (a) Employment.
(b) Sole proprietorship. For its advantages and disadvantages.
| CBSE Class 11 Business Studies Nature and Purpose of Business VBQs |
| CBSE Class 11 Business Studies Forms of Business Organisation VBQs |
VBQs for Chapter 2 Forms of Business Organisation Class 11 Business Studies
We hope students liked the above VBQs for Chapter 2 Forms of Business Organisation designed as per the latest syllabus for Class 11 Business Studies released by CBSE. Students of Class 11 should download the Value Based Questions and Answers in Pdf format and practice the questions and solutions given in above Class 11 Business Studies VBQs Questions on daily basis. All latest VBQs with answers have been developed for Business Studies by referring to the most important and regularly asked topics which the students should learn and practice to get better score in school tests and examinations. Expert teachers of studiestoday have referred to NCERT book for Class 11 Business Studies to develop the Business Studies Class 11 VBQs. After solving the questions given in the VBQs which have been developed as per latest course books also refer to the NCERT solutions for Class 11 Business Studies designed by our teachers. We have also provided a lot of other VBQs for Class 11 Business Studies which you can use to further make yourself better in Business Studies.
Where can I download latest CBSE VBQs for Class 11 Business Studies Chapter 2 Forms of Business Organisation
You can download the CBSE VBQs for Class 11 Business Studies Chapter 2 Forms of Business Organisation for latest session from StudiesToday.com
Are the Chapter 2 Forms of Business Organisation Class 11 Business Studies VBQs available for the latest session
Yes, the VBQs issued by CBSE for Chapter 2 Forms of Business Organisation Class 11 Business Studies have been made available here for latest academic session
Is there any charge for the VBQs with answers for Class 11 Business Studies Chapter 2 Forms of Business Organisation
There is no charge for the VBQs and their answers for Class 11 CBSE Business Studies Chapter 2 Forms of Business Organisation you can download everything free
How can I improve my VBQs in Class 11 Business Studies Chapter 2 Forms of Business Organisation
Regular revision of VBQs given on studiestoday for Class 11 subject Business Studies Chapter 2 Forms of Business Organisation can help you to score better marks in exams
What are VBQs for Class 11 Business Studies Chapter 2 Forms of Business Organisation
Value Based Questions (VBQs) for Class 11 Business Studies Chapter 2 Forms of Business Organisation help to test the ability of students to apply learnings to various situations in life.