NCERT MCQ ON Forms of Business Organisation:
Q.1 The karta in Joint Hindu Family business has :
(a) Limited liability
(b) Unlimited liability
(c) No liability for debts
(d) Joint liability
Answer
(b) Unlimited liability
Q.2 The board of directors of a joint stock company is elected by :
(a) General public
(b) Government bodies
(c) Shareholders
(d) Employees
Answer
(c) Shareholders
Q.3 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) Sole proprietorship
Q.4 The Head of the Joint Hindu Family business is called :
(a) Proprietor
(b) Director
(c) Karta
(d) Manager
Answer
(c) Karta
Q.5 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) Secret partner
Q.6 The maximum number of partners allowed in the banking business are
(a) Ten
(b) No limit
(c) Twenty
(d) Two
Answer
(a) Ten
Q.7 At least 10 adults, no maximum limit in case of __
(a) Joint Hindu Family
(b) Cooperative Society
(c) Company
(d) PartnershipShow Answer
Answer
(b) Cooperative Society
Q.8 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) Sole Proprietorship
Q.9 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
Answer
(a) The personal assets of the owner can be sold when the assets of the business are not enough to
Q.10 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
Answer
(a) Housing Cooperative
Q.11 Hindu Succession Act was passed in _
(a) 1960
(b) 1956
(c) 1952
(d) 1932
Answer
(b) 1956
Q.12 A prospectus is issued by
(a) Public company
(b) Private company
(c) Statutory Corporation
(d) Departmental undertaking
Answer
(a) Public company
Q.13 A partner whose association with the firm is unknown to the general public is called
(a) Active partner
(b) Nominal partner
(c) Secret partner
(d) Sleeping partner
Answer
(c) Secret partner
Q.14 What is the limit of members in case of a Private Company?
(a) 2
(b) 7
(c) 10
(d) 50
Answer
(d) 50
Q.15 The life of sole proprietorship business is _
(a) Unstable
(b) Stable
(c) Very short life
(d) Long life
Answer
(a) Unstable
Q.16 Provision of residential accommodation to the members at reasonable rates is the objective of
(a) Consumers cooperative
(b) Credit cooperative
(c) Housing cooperative
(d) Producers cooperative
Answer
(c) Housing cooperative
Q.17 The maximum number of partners allowed in the banking business are :
(a) Twenty
(b) Ten
(c) No limit
(d) Two
Answer
(b) Ten
Q.18 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) Share
Q.19 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) One man one vote
Q.20 A company cannot come into existence without
(a) Issuing prospectus
(b) Electing directors
(c) Certificate of incorporation
(d) All of the above
Answer
(c) Certificate of incorporation
Q.21 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
Answer
(a) Mutual Agency
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