MCQ Questions For Class 11 Business Studies Chapter 2 Forms of Business Organisation

Check the below NCERT MCQ Class 11 Business Studies Chapter 2 Forms Of Business Organisation with Answers available with PDF free download. MCQ Questions for Class 11 Business Studies  with Answers were prepared based on the latest syllabus and examination pattern issued by CBSE, NCERT and KVS. Our teachers have provided below Forms Of Business Organisation Class 11 Business Studies  MCQs Questions with answers which will help students to revise and get more marks in exams

Forms Of Business Organisation Class 11 Business Studies MCQs Questions with Answers

Refer below for MCQ Class 11 Business Studies Chapter 2 Forms Of Business Organisation with solutions. Solve questions and compare with the answers provided below.

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

Question. 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

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

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

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

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

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

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

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

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

Question. _______ company needs to have only two directors.
(a) Public Company
(b) Sole Proprietorship
(c) Private Company
(d) None of the above

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

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

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

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

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

Question. The form of business organization that has the largest sales volume is the:
(a) Partnership
(b) Corporation
(c) Cooperative
(d) Multinational

Question. The life of sole proprietorship business is ___________
(a) Very short life
(b) Stable
(c) Long life
(d) Unstable

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

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

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

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

Question. In which form of business organization, minor can also be members –
(a) Joint Stock Company
(b) Cooperative Society
(c) HUF business
(d) Sole Proprietorship

Question. Find out the liability of Kavita in a company. Who is a shareholder, holding 3,000 shares of Rs. 10 each. She has already paid Rs. 6 per share.
(a) Rs 10,000
(b) Rs. 1,20,000
(c) Rs 18,000
(d) Rs. 12000

Question.Capital clause specifies—
(a) authorised capital
(b) subscribed capital
(c) paid up capital
(d) Issued capital

Question. Which form of organisation is suitable if direct control over operations & absolute decision making power is required in business?
(a) Joint Stock Co.
(b) cooperative society
(c) Sole proprietorship
(d) HUF

Question.The profit distributed among the shareholders is known as:
(a) Incentives
(b) bonus
(c) Interest
(d) Dividend

Question. Which is not a limitation of Sole proprietorship.
(a) Limited resources
(c) Easy formation
(b) Limited life of business
(d) limited managerial ability 

Question. Prospectus is issued by
(a) Public Enterprise
(b) Public Company
(c) Private Company
(d) Public Sector 

Question. Which document is subsidiary of the MOA
(a) prospectus
(b) articles of association
(c) consent of directors
(d) table A

Question. Minimum paid up capital to start a Private Ltd company is
(a) one lakh
(b) Two lakhs
(c) Five lakhs
(d) Ten lakhs

Question. Which type of business organisation is the most popular and suitable for Small business.
(a) Joint Hindu Family
(c) Partnership
(b) Sole Proprietorship
(d) Cooperative society 

Question. An entrepreneur -answer choices enforces government regulations takes the risk to earn profit sets the interest rates at banks manages financial investments

Question. What is the advantage of corporations?
(a) minimal government regulation
(b) limited liability
(c) short life span
(d) has one owner

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

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

Question. Floral Shops, Bookstores, Farms are examples of what type business
(a) Sole Proprietorship
(b) Corporation
(c) Franchise
(d) Multinational Corporation

Question. What type of business consists of two or more people?
(a) Sole Proprietorship
(b) Partnership
(c) Corporation
(d) Franchise

Question. Nike, IBM, and Google are examples of
(a) partnership
(b) franchise
(c) corporation
(d) partnership

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 : When individuals voluntarily join together to protect and promote their common interests, they

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

Question. A form of business organization with two or more owners who share the risks and the profits
(a) proprietorship
(b) corporation
(c) wholesale
(d) partnership

Question. The most effective form of business organization for raising capital is the:
(a) joint venture.
(b) partnership.
(c) corporation.
(d) proprietorship.

Question. Innovation means:
(a) Production of new commodities
(b) Customer satisfaction
(c) Production according to consumer needs
(d) To maximise sales

Fill in the Blanks:

Question. Registration of a partnership business is __________ . 

Question. In a cooperative society, the power to take decisions lies in the hands of an elected __________ committee.

Question. In a general partnership liability of partners is __________ . 

Question. The formation of a company is a time consuming, ___________ and a complicated process.

Question. A person running a retail shop, beauty parlous, saloons in a locality is known as __________ form of business.  

Question. Articles of association are the rules regarding __________ management of a co.

Question.The liability of all member, except the karta in Hindu Undivided family is __________ . 

Question.Minimum number of members in a partnership business are __________ persons.

Question. The most important document used in partnership business is __________ . 

Question. Sole proprietorship is a form of business organisation which is outlined, managed and controlled by an__________ .

True or False:

Question. APrivate company should appoint minimum three Board of Directors.

Question. Marketing cooperative society is established to help small producers in selling their products.

 Question. A sleeping partner is having limited liability.

Question. A Private company can raised funds after issuing prospectus.

Question. The maximum members of any Private Ltd. Can be two hundred.

Question. Issued capital of A tech ltd.was Rs. 5o cr, co.gets the subscribed capital of Rs.44 cr. Now co. can allot share to shareholders.

Question. The common seal is engraved equivalent of an official signature of a company.

Question. There is lack of business continuity in sole proprietorship business organisation.

Question. Registration of a cooperative society is not compulsory.

Question. A public co. can commence the business after incorporation.

Match the following:

Question. Match the following cooperative societies with their objective

(a) Farmer‟s Cooperative Society	1. To eliminate middlemen
(b) Marketing Cooperative Society	2. To protect the interest of small producers
(c) Consumer‟s Cooperative Society	3. To help small producers in selling their products
(d) Credit Cooperative Society	4. To protect the interest of farmers
	5.To provide loan facility on reasonable terms

Question. Match the following forms of business organizations with the minimum number of members required

(a) Partnership	1. Five
(b) Cooperative Society	2. Seven
(c) Private Company	3. Two
(d) Public Company	4. Ten
	5.Fifteen

Question. Match the following forms of business organizations with their suitable examples

(a) Sole Proprietorship	1. AMUL
(b) Cooperative Society	2. Airtel
(c) Private Company	3. Gupta General Store
(d) Public Company	4. BHEL

Question. Match the following acts with their years

(a) Partnership Act	1. 2013
(b) Cooperative Society Act	2. 1956
(c) Companies Act	3. 1932
(d) Joint Hindu Succession Act	4. 1912
	5. 1986

Pictorial questions:-

Question.

Name the type of Business.

Question.

Name the type of Partner

Question.

Describe the liability of a nominal partner.

Question.

Name the type of partnership.

Question.

Name the feature of partnership business.

One word Answer type Questions :

Question. Name the type of partnership which is setup to complete a particular project for a specified time period.
Answer. Particular partnership.

Question. What is ClN? 
Answer. CIN stands for ‘Corporate Identity Number’ allotted by the Registrar of Companies on incorporation of a company.

Question. Mention the minimum number of persons required to form a cooperative society. 
Answer. Ten adult persons.

Question. It is not formed by an agreement or by a contract. But it comes into existence by the operation of Hindu Law. Name the type of business organisation referred to here.
Answer. Hindu undivided family business.

Question. Name the form of business organisation which is owned, managed, financed and controlled by a single person who enjoy all the profits and bears all the risks. 
Answer. Sole proprietorship.

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 form of business organisation wherein members are agents and principals of each other. 
Answer. Partnership.

Question. Name the partner whose association with the firm is not known to the general public.
Answer. Secret partner.

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. Name the form of business organisation where there is separation of ownership and management. 
Answer. Company form of business.

Question. Name the partner who permits the partnership firm to use his/her name for the benefit of the firm but does not contribute any capital or take part in the management of the business. 
Answer. Nominal partner.

Question. Name the form of business organisation found only in India.
Answer. Hindu Undivided Family Business.

Question. What is the main cause of decline in Joint Hindu Family Business. 
Answer. Diminishing number of Joint Hindu Families.

Question. Name the process by which the shares of a company are allowed to be traded on a stock exchange. 
Answer. Listing of shares.

Question. Name the form of business organisation wherein management tends to be oligarchic. 
Answer. Joint stock company.

Question. What is ‘the minimum number of members required to start a partnership firm? 
Answer.Two members.

Question. State the law which governs the company form of organisation in India.
Answer. The Companies Act, 2013.

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