BUSINESS STUDIES

CLASS XI
CHAPTER-2

1. Members of any Private Ltd. Company cannot transfer his shares without
permission of shareholders. (True)
2. A Private company can raise funds after issuing prospectus. (False)
3. A Private company should appoint minimum three Board of Directors. (False)
4. Minimum Paid up capital to start any Private company is 1 lakh rupees. (True)
5. The maximum members of any Private Ltd. Can be two hundred. (True)
6. There is no limit on maximum member in a public company. (True)
7. A company is legally entitled to undertake an activity which is beyond the object
clause. (False)
8. Articles of association can be altered from time to time as per the act. (True)
9. A public company can commence the business after incorporation. (False)
10. Issued capital of A Ltd. was ₹ 50 crores, company gets the subscribed capital of ₹
44 crore. Now company can allot share to shareholders. (False)

Multiple Choice Questions: -

1- In which type of business organisation the owner does not share his/her profit.
a) Partnership c) Sole proprietorship
b) Cooperative society d) Joint Hindu family
2- 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

3- Which type of business organisation is easy to form and there is no separate law
for:
a) Sole Proprietorship c) Joint Hindu Family
b) Cooperative society d) Partnership
4- Which is not a limitation of Sole proprietorship:
a) Limited resources c) Easy formation
b) Limited life of business d) limited managerial ability
5- Which is not a feature of sole proprietorship:
a) Unlimited liability c) limited managerial ability
b) Ease of formation d) Quick decision making

6. In which form of business organization, minor can also be members –

(a) Joint Stock Company (b) Cooperative Society
(c) HUF business (d)Sole Proprietorship

7. The prospectus is issued by: -

a) Private company b) Public company
c) Partnership d) HUF

8. The oldest form of business organization of India:

a) HUF business b) Partnership
c) Public company d) One person company

9. Application for approval of name of a company is to be made to-

a) SEBI b)Registrar of Companies
c) Government of India d) State Government

10. What is the size of minimum subscription as per SEBI?

a)90% b)92%
c)85% d)80%

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