Forms of Business Organisation Class 11 MCQs

Questions with Answers

AMIT SHIRPURKAR
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Objective Type Questions
Question 1.
The structure in which there is separation of ownership and management is called:
(a) Sole proprietorship
(b) Partnership
(c) Company
(d) All business organization.

Answer
Answer: (c) Company
Question 2.
In a co-operative society, the principle followed is :
(a) One share one vote
(b) One man one vote
(c) No vote
(d) Multiple votes.

Answer
Answer: (b) One man one vote
Question 3.
The maximum number of partners allowed in the banking business are :
(a) Twenty
(b) Ten
(c) No limit
(d) Two.

Answer
Answer: (b) Ten

Question 4.
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
Answer: (d) Share.

Question 5.
Provision of residential accommodation to the members at reasonable rates is the
objective of:
(a) Producer’s cooperative
(b) Consumer’s cooperative
(c) Housing cooperative
(d) Credit cooperative.

Answer
Answer: (c) Housing cooperative
Question 6.
The karta in Joint Hindu Family business has :
(a) Limited liability
(b) Unlimited liability
(c) No liability for debts
(d) Joint liability.

Answer
Answer: (b) Unlimited liability

Question 7.
The board of directors of a joint stock company is elected by :
(a) General public
(b) Government bodies
(c) Shareholders
(d) Employees.

Answer
Answer: (c) Shareholders

Question 8.
Profits do not have to be shared. This statement refers to :
(a) Partnership
(b) Joint Hindu Family business
(c) Sole proprietorship
(d) Company.

Answer
Answer: (c) Sole proprietorship
Question 9.
The Head of the Joint Hindu Family business is called :
(a) Proprietor
(b) Director
(c) Karta
(d) Manager

Answer
Answer: (c) Karta

Question 10.
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
Answer: (d) Secret partner.

Fill in the blanks

1. …… are business practise which are desirable form the point of new of society.

Answer
Answer: Business ethics

2. Business ethics depends on welfare of ……

Answer
Answer: Business

3. Business owes some …… towards society.

Answer
Answer: Society

4. …… gives partnership birth.

Answer
Answer: Compromises

5. The partner who invested capital only but not take a part in management is called
………

Answer
Answer: Inactive partner.

6. The liabilities of chief (owner) of Hindu undivided family are ……… on the
contrary the liabilities of its members are ……..

Answer
Answer: Unlimited, limited
7. ……. only can take a part of JHF.

Answer
Answer: Who can take birth in family

8. The limit in Rs. of small scale industries is …………

Answer
Answer: One crore

9. Minimum number of members are required for company ………

Answer
Answer: Two

10. …….. company does not issue share capital.

Answer
Answer: Private

11. The first preference has been given for paying dividend …… shares.
Answer
Answer: Preference

12. The debenture required for mortgage of asset is called ………

Answer
Answer: Mortgage debenture

13. To making Article of Association for Joint Stock Pvt. Ltd. company is ……….

Answer
Answer: Not compulsory

14. Memorandum of Association of a company is …….. charter.

Answer
Answer: Non-convertible

15. In Memorandum of Association of company the rights and ……. are written.

Answer
Answer: Object
16. ……….. is a important document of a company.

Answer
Answer: Memorandum of Association

17. Company is a …….. person.

Answer
Answer: Artificial

18. The persons which construct a company is called ……..

Answer
Answer: Promoter

19. In Memorandum of Association at least ………. person’s sign is compulsory.

Answer
Answer: Seven.

20. …….. is to pursue those policies which are desirable for values of society.
Answer
Answer: Business responsibility

21. Maximum social welfare in business shows …….. responsibility.

Answer
Answer: Social

22. Moving vehicle causes …… pollution.

Answer
Answer: Air

23. The first objective of cooperative society is ……..

Answer
Answer: For provide service

24. The life of sole tradership is ……….

Answer
Answer: Uncertain
25. In sole tradership does have ……. capacity.

Answer
Answer: For making contract

26. For selecting any kind of business is …….. most important factor.

Answer
Answer: Financial

27. We need type of business for large scale production and distribution …………

Answer
Answer: Company

28. For public company ……. minimum number of members are required.

Answer
Answer: Three

29. For every proposal of company ……. having voting right.

Answer
Answer: Equity

30. The small parts of capital of every company is called …….

Answer
Answer: Shares

31. To making Memorandum of Association is ………

Answer
Answer: Compulsory

32. For purchasing share / debenture company issued its ……….. for inviting public.

Answer
Answer: Prospectus

33. In the absence of Article of Association the rules and regulations followed by
company is ………

Answer
Answer: Table-A
34. Company incorporated in it …..

Answer
Answer: Company Act 1956

35. ……… is the evidence of existence of company.

Answer
Answer: Incorporation

36. Registration of company is called …….. company.

Answer
Answer: Incorporation

37. In place of prospectus ………. can issued.

Answer
Answer: Substitute prospectus

True or False
1. Co-operative society was originated in England and Germany.

Answer
Answer: True

2. Registration of partnership is compulsory.

Answer
Answer: False

3. Registration of sole tradership is compulsory.

Answer
Answer: False

4. Company is a word of French language.

Answer
Answer: Flase

5. Equity share capital is included ownership capital.

Answer
Answer: True
6. Debenture holder is included in ownership capital.

Answer
Answer: False

7. After getting maturity then member of family can become partner of family
business.

Answer
Answer: False

8. The having one member can never be company.

Answer
Answer: False

9. Partnership deed defines oral agreement among partners.

Answer
Answer: False
10. Private company start business after obtaining the certificate of incorporation.

Answer
Answer: False

11. When company became existence the work of promoter ends.

Answer
Answer: True

12. M.O.A. is a important document of company.

Answer
Answer: True

13. Article of Association is compulsory.

Answer
Answer: False

14. For registration of company prospectus of company is compulsory.

Answer
Answer: False
15. In partnership responsibility of members are limited.

Answer
Answer: Flase

16. Secracy in sole tradership is always profitable.

Answer
Answer: Flase

17. Chief of Hindu family is called Karta.

Answer
Answer: True

18. Public company do not issued prospectus.

Answer
Answer: False

19. Public deposit is a medium term source of finance.

Answer
Answer: True

20. Preference shares do not have the right of getting dividend.

Answer
Answer: False

21. First company act was passed in India on 1850.

Answer
Answer: True

22. There is no risk in sole tradership.

Answer
Answer: False

23. Public sectors main aim is not to earn profit.

Answer
Answer: False
24. Alteration in Article of Association is easy.

Answer
Answer: True

25. Company can alter in memorandom of association by passing a ordinance.

Answer
Answer: True

26. Private company start business instantly after getting certificate of incorporation.

Answer
Answer: True

27. A.O.A. is second important document of company.

Answer
Answer: True

28. Table-A can be the subsitute of A.O.A.

Answer
Answer: True

Match the Columns

(A)

(A) (B)

1. Minimum number of members (a) Partnership

2. 20 maximum number of members (b) Co-operation

3. Co-operative society (c) 1946

4. Partnership Act (d) 1932

5. Unlimited liabilities (e) 1956

6. Membership of Hindu undivided family (f) Karta

7. Hindu joint family Act (g) Quick decision

8. Sole tradership (h) By birth

9. Public company (i) Private Ltd.

10. Private company (j) Ltd.

11. Sony company (k) Domestic company

12. Godrej (l) Domestic company

13. Interference in management (m)   F.D.I.

14. Finance short term (n) Debenture

15. Borrowed fund (o) Commercial Bank

16. International sources of finance (p) Shareholder State

17. Mitakshra community (q) State Bank of India

18. Form by special law (r) Hindu joint family

19. Insurance company Act (s) 1949

20. Banking company Act (t) 1938

21. Multinational company (u) Ownership in the hands of govt. and private

22. Joint ventures (v) Business in several countries.

Answer
Answer:

(A) (B)

1. Minimum number of members (b) Co-operation

2. 20 maximum number of members (a) Partnership

3. Co-operative society (c) 1946

4. Partnership Act (d) 1932

5. Unlimited liabilities (f) Karta

6. Membership of Hindu undivided family (h) By birth

7. Hindu joint family Act (e) 1956

8. Sole tradership (g) Quick decision

9. Public company (j) Ltd.

10. Private company (i) Private Ltd.

11. Sony company (l) Domestic company

12. Godrej (k) Domestic company

13. Interference in management (p) Shareholder State

14. Finance short term (o) Commercial Bank

15. Borrowed fund (n) Debenture

16. International sources of finance (m) F.D.I.

17. Mitakshra community (r) Hindu joint family

18. Form by special law (q) State Bank of India

19. Insurance company Act (t) 1938

20. Banking company Act (s) 1949

21. Multinational company (v) Business in several countries.

(u) Ownership in the hands of govt.

22. Joint ventures
and private

(B)

(A) (B)

1. Promotion of a company (a) Prospectus

2.  Compulsory document (b) Memorandum of Association

3. Secondary document (c) Promoter

4.  Issue of debenture (d) Article of Association

5. Incorporation of company (e) 1956

6. Company Act (f) Company

7. Seal (g) Public company

8. Issue of Prospectus (g) Table-A

9. Article of Association (h) Substitution

10. Alternative of prospectus (i) Compulsory

Answer
(A) (B)

1. Promotion of a company (c) Promoter

2. Compulsory document (b) Memorandum of Association

3. Secondary document (d) Article of Association

4. Issue of debenture (a) Prospectus

5. Incorporation of company (j) Compulsory

6. Company Act (e) 1956

7. Seal (f) Company

8. Issue of Prospectus (g) Public company

9. Article of Association (h) Table-A

10. Alternative of prospectus (i) Substitution

(C)

(A) (B)

1. Responsibility towards shareholders  (a) Payment of taxes on time

2. Responsibility towards consumers (b) Provide optimum remuneration

3. Responsibility towards employees (c) Provide good quality products

4. Responsibility towards government (d) Environmental protection

5. Responsibility towards society (e) Provide adequate dividends.

Answer
Answer:

(A) (B)

1. Responsibility towards shareholders (e) Provide adequate dividends.

2. Responsibility towards consumers (c) Provide good quality products

3. Responsibility towards employees (b) Provide optimum remuneration

4. Responsibility towards government (a) Payment of taxes on time

5. Responsibility towards society (d) Environmental protection

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