MCQ Chapter 2 Forms of Business Organisation Class 11 Business Studies

MCQ Questions Class 11

Please refer to Forms of Business Organisation MCQ Questions Class 11 Business Studies below. These MCQ questions for Class 11 Business Studies with answers have been designed as per the latest NCERT, CBSE books, and syllabus issued for the current academic year. These objective questions for Forms of Business Organisation will help you to prepare for the exams and get more marks.

Forms of Business Organisation MCQ Questions Class 11 Business Studies

Please see solved MCQ Questions for Forms of Business Organisation in Class 11 Business Studies. All questions and answers have been prepared by expert faculty of standard 11 based on the latest examination guidelines.

MCQ Questions Class 11 Business Studies Forms of Business Organisation

Question. Profits do not have to be shared. This statement refers to :   
(a) Partnership
(b) Joint Hindu Family business
(c) Sole proprietorship
(d) Company

Answer

C

Question. A partnership firm can be registered under:     
(a) The Partnership Act, 1932
(b) The Indian Contract Act, 1872
(c) The Partnership Act, 1994
(d) The Partnership Act,1922

Answer

A

Question. The structure in which there is separation of ownership and management is called     
(a) Sole proprietorship
(b) Partnership
(c) Company
(d) All business organizations

Answer

C

Question. The simplest form of business ownership is a:     
(a) proprietorship.
(b) partnership.
(c) corporation.
(d) cooperative.

Answer

A

Question. In a cooperative society the principle followed is   
(a) One share one vote
(b) One man one vote
(c) No vote
(d) Multiple votes

Answer

B

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

Answer

B

Question. Sense of accomplishment is present in which of business organisation:     
(a) Partnership
(b) Company
(c) Joint Hindu Family business
(d) Sole proprietorship

Answer

D

Question. The structure in which there is separation of ownership and management as per law is called   
(a) Company
(b) All business organisations
(c) Partnership
(d) Sole proprietorship

Answer

A

Question. The capital of a company is divided into number of parts each one of which are called:   
(a) Dividend
(b) Profit
(c) Interest
(d) Share

Answer

D

Question. Which one of the following may not be a factor behind starting a business?     
(a) Routine workload
(b) size of the firm
(c) finance
(d) location of the business

Answer

A

Question. A private company is one which:     
(a) Limits the number of members
(b) Restricts the transferability of shares
(c) Prohibits the public to subscribe to its securities
(d) All of these

Answer

D

Question. On the basis of duration partnership are classified into:     
(a) Partnership at will and particular partnership
(b) General partnership and limited partnership
(c) Long partnership and short partnership
(d) None of these

Answer

A

Question. The karta in Joint Hindu family business has   
(a) Limited liability
(b) Unlimited liability
(c) No liability for debts
(d) Joint liability

Answer

B

Question. The structure in which there is separation of ownership and management is called   
(a) Sole proprietorship
(b) Partnership
(c) Company
(d) All business organisations

Answer

C

Question. The board of directors of a joint stock company is elected by     
(a) General public
(b) Government bodies
(c) Shareholders
(d) Employees

Answer

C

Question. A partner who is not actually involved in the partnership but lends his name for public relations purposes is a:   
(a) silent partner.
(b) general partner.
(c) nominal partner.
(d) dominant partner.

Answer

C

Question. Which of the following is probably the most important reason for incorporating?   
(a) limited liability of shareholders.
(b) more money for investment.
(c) increased flexibility.
(d) shared management.

Answer

A

Question. Transfer of interest exists in the case of     
(a) Profession
(b) employment
(c) business
(d) none of these

Answer

C

Question. Which of the following forms of business organisation has limited liability to his members:   
(a) Partnership
(b) Company
(c) Sole proprietorship
(d) Joint Hindu Family business

Answer

B

Question. The Head of the Joint Hindu Family business is called :   
(a) Proprietor
(b) Director
(c) Karta
(d) Manager

Answer

C

Question. __________ company does not invite public to subscribe to its share capital     
(a) Both Private and Public Company
(b) Public Company
(c) Private Company
(d) None of the above  

Answer

C

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. A company named Tech pvt ltd wants to issue its shares to the general public. Can the company do so:   
(a) Yes
(b) Yes, after taking permission from the government
(c) Yes but there will be a few restrictions
(d) No

Answer

D

Question. Which of the following is an advantage of a sole proprietorship ?   
(a) ease of starting a business.
(b) being your own boss.
(c) pride of ownership.
(d) all of the above.

Answer

D

Question. In case of running a Joint Hindu Family business there must be at least _____ members in a family.   
(a) 6
(b) 4
(c) 2
(d) 8

Answer

C

Question. Which of the following is an example of a non profit organization?   
(a) Royal Bank.
(b) YMCA.
(c) BCE.
(d) Air Canada.

Answer

B

Question. All members who have equal ownership rights over the property of an ancestor are known as __________:   
(a) Family members
(b) Coparceners
(c) Business Partners
(d) Heirs of the Business

Answer

B

Question. A company being an artificial person can:     
(a) Enter into contracts
(b) Can sue the third party or its members
(c) Can be sued by its members or any other third party
(d) All of these

Answer

D

Question. Which of the following business organisation has service motive?
(a) Sole Proprietorship
(b) Joint Hindu Family
(c) Cooperative Society
(d) Company

Answer

C

Question. In a cooperative society, the power to take decisions lies in the hands of.
(a) Elected Managing Committee
(b) Karta
(c) Board of directors
(d) Members

Answer

A

Question. The form partnership which was restricted in India is.
(a) Particular Partnership
(b) General Partnership
(c) Partnership at will
(d) Limited Partnership

Answer

D

Question. Maximum number of members in Private company are
(a) 50
(b) 100
(c) 150
(d) 200

Answer

D

Question. Minimum numbers of Board of Directors in any Private company can be
(a) 3
(b) 2
(c) 4
(d) 5

Answer

B

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

Answer

D

Fill in the Blanks:

Question. Hindu Undivided Family Business is governed by __________ act 1956. 

Answer

Hindu succession 

Question. Forms of Business which is suitable for small business is ___________ . 

Answer

Sole Proprietorship

Question. The maximum number of shareholders in any Private company is _________

Answer

200

Question.The head of the family, in Hindu Undivided family is called __________ . 

Answer

Karta

Question. There is __________ restriction on transfer of share. 

Answer

No 

True/False Answer Questions

Question. 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.

Answer

False

Question. A company can ratify preliminary contracts after incorporation.

Answer

True

Question. Every company must file Articles of Association.

Answer

False

Question. In a joint stock professional management is not possible .

Answer

False

Question. Appointment of underwriters is necessary in the capital subscription stage.

Answer

False

Question. Members of any Private Ltd. Company cannot transfer his shares without permission of shareholders.

Answer

True

Question. The cooperative society can be started with a minimum of two members.

Answer

False

 Question. Sole proprietors have limited liability.

Answer

False

Question. If a company is registered on the basis of fictitious names, its incorporation is invalid.

Answer

False

Question. Statement in lieu of prospectus can be filed by a public company going for a public issue.

Answer

False

Match the following:

Question. Match the following forms of business organisation on the basis of control and management.

(a) Company1. Owner takes all decisions, quick decision making
(b) Cooperative society2. Separation between ownership & Management
(c) Joint Hindu family3. Elected Representative managing committee takes decisions
(d) Sole Proprietorship4. Karta takes decisions
Answer

(a) – 2, (b) – 3, (c) – 4, (d) – 1

Question. Match the Column on the basis of features of Hindu Undivided Family-

(a) continuity1. Karta takes all the decisions
(b) Control2. Does not require any agreement
3. Remain even after the death of Karta.
Answer

(a) – 3, (b) – 1

Question. Match the Acts with their years-

(a) Hindu Succession Act1. Act 1932
(b) Partnership2. Act 1912
3. Act1956
Answer

(a) – 3, (b) – 1

Question. Match the minimum number of member require in the form of business organization-

(a) HUF1. 10 members
(b) Cooperative2. 2 members
3. 5 members
Answer

(a) – 2, (b) – 1

One word Answer type Questions :

Question. What is the basis of membership in the Joint Hindu Family Business? 
Answer. Birth in a particular family.

Question. Which is the least regulated form of business? 
Answer. Sole proprietorship.

Question. Whose decisions are binding on all the members of the Joint Hindu Family Business? 
Answer. Karta.

Question. What happens to Joint Hindu Family Business if Karta or any other member dies? 
Answer. Business continues.

Question. In which form of organisation is a trade agreement made by one owner binding on the others?
Answer. Partnership.

Question. Mr. Gurpreet wants to apply for the shares of ACC Ltd. From which document he will get the details. 
Answer. Prospectus.

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. “Employees Union of Bharat Textiles start a retail store to make daily household articles at reasonable prices available to its members.” Name this form of business organisation. 
Answer. Cooperative society (Consumers’ cooperative society).

Question. Name the basic document prepared in partnership firm. 
Answer. Partnership deed.

Question. Define partnership deed. 
Answer. The document containing the terms and conditions of the partnership agreement is called partnership deed.

Question. A company get registered with an illegal object. Can the registration be questioned? 
Answer. No, the registration cannot be questioned if the registrar has already issued the Certificate of Registration.

Question. Which type of company cannot invite public to subscribe to its share capital?
Answer. Private company.

Question. Name the enterprise involving single ownership. 
Answer. Sole proprietorship.

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 form of business organisation which can be formed by an oral agreement between the members. 
Answer. Partnership.

Question. Which business organisation is least advantageous on the basis of availability of capital? 
Answer. Sole proprietorship.

Forms of Business Organisation MCQ Questions Class 11 Business Studies