Question 1.

At least 10 adults, no maximum limit in case of ________

(a) Cooperative Society

(b) Joint Hindu Family

(c) Partnership

(d) Company

Answer

Answer: (a) Cooperative Society

Question 2.

What is the limit of members in case of a Private Company?

(a) 2

(b) 7

(c) 10

(d) 50

Answer

Answer: (d) 50

Question 3.

The life of sole proprietorship business is ___________

(a) Unstable
(b) Stable

(c) Very short life

(d) Long life

Answer

Answer: (a) Unstable

Question 4.

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

Answer: (c) Housing cooperative

Question 5.

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

Answer
Answer: (a) Share

Question 6.

The maximum number of partners allowed in the banking business are

(a) Two

(b) Twenty

(c) No limit

(d) Ten

Answer

Answer: (d) Ten

Question 7.

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

Answer: (a) One man one vote

Question 8.

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

Answer: (a) Company

Question 9.

Co-operatives play an important role in:

(a) aerospace.

(b) agriculture.

(c) manufacturing.

(d) all of the above.

Answer

Answer: (b) agriculture.

Question 10.

Which of the following is a characteristic of a co-operative?

(a) profits are not subject to income tax.

(b) one vote per share.

(c) dividends are paid on a per share basis.

(d) all of the above.

Answer
Answer: (a) profits are not subject to income tax.

Question 11.

A__________ provides for the greatest degree of continuity:

(a)general partnership.

(b) joint venture.

(c) corporation.

(d) sole proprietorship.

Answer

Answer: (c) corporation.

Question 12.

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

Answer: (a) limited liability of shareholders.

Question 13.

A_____________partner is an owner who has unlimited liability and is active in managing the firm:

(a) senior partner.

(b) general partner.

(c) silent partner.

(d) limited partner.

Answer

Answer: (b) general partner.

Question 14.

A ___________ is a business with two or more owners:

(a) corporation.

(b) conglomerate.

(c) partnership.

(d) public corporation.

Answer

Answer: (c) partnership.

Question 15.

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
Answer: (d) all of the above.

Question 16.

The form of business organization that has the largest sales volume is the:

(a) partnership.

(b) corporation.

(c) cooperative.

(d) multinational.

Answer

Answer: (b) corporation.

Question 17.

In case of ___________ Registration is compulsory

(a) Sole Proprietorship

(b) Partnership

(c) None of these

(d) Company

Answer

Answer: (d) Company

Question 18.

Hindu Succession Act was passed in _____________

(a) 1952
(b) 1960

(c) 1932

(d) 1956

Answer

Answer: (d) 1956

Question 19.

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

Question 20.

The Head of the joint Hindu family business is called

(a) Manager

(b) Proprietor

(c) Karta

(d) Director

Answer
Answer: (c) Karta

Question 21.

Profits do not have to be shared. This statement refers to

(a) Company

(b) Sole proprietorship

(c) Joint Hindu family business

(d) Partnership

Answer

Answer: (b) Sole proprietorship

Question 22.

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 23.

The karta in Joint Hindu family business has

(a) No liability for debts

(b) Unlimited liability

(c) Joint liability

(d) Limited liability

Answer

Answer: (b) Unlimited liability

Question 24.

The most effective form of business organization for raising capital is the:

(a) joint venture.

(b) partnership.

(c) corporation.

(d) proprietorship.

Answer

Answer: (c) corporation.

Question 25.

The major advantage of a franchise is:

(a) training and management assistance.

(b) personal ownership.

(c) nationally recognized name.

(d) all of the above.

Answer
Answer: (d) all of the above.

Question 26.

Which of the following is an example of a non profit organization?

(a) Royal Bank.

(b) YMCA.

(c) BCE.

(d) Air Canada.

Answer

Answer: (b) YMCA.

Question 27.

Which of the following is an example of a public corporation?

(a) Imperial Oil.

(b) Hospital for Sick Children.

(c) Mouvement Caisse Desjardin.

(d) YMCA.

Answer

Answer: (a) Imperial Oil.

Question 28.

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

Answer: (c) nominal partner.

Question 29.

The main disadvantage of a general partnership is:

(a) the unlimited liability of the partners.

(b) disagreement amongst partners.

(c) shared management.

(d) difficulty of termination.

Answer

Answer: (a) the unlimited liability of the partners.

Question 30.

The simplest form of business ownership is a:

(a) proprietorship.

(b) partnership.

(c) corporation.

(d) cooperative.

Answer
Answer: (a) proprietorship.

One Mark Questions

1. Write any one type of forms of business organisations.

Answer

Answer: Partnership firm

2. Give the meaning of sole trading concern.

Answer

Answer: Sole trading concern refers to a form of business organisation which is owned, managed and
controlled by an individual who is the recipient of ail profit bearer of all risks.

3. Give any one example to sole trading concern.

Answer

Answer: Home Healthcare

4. Who is Karta?

Answer

Answer: The head of the Hindu Joint Family also called the Karta

5. State the minimum & maximum members in partnership.

Answer

Answer: Minimum Number of members is 2 and maximum is 10 in case, of banking and 20 in case of
business.

6. Write any one effect of non-registration of a partnership

Answer

Answer: No suit by a partner against other partners or firm.

7. Write any one type of partnership firm.

Answer

Answer: Limited Partnerships

8. Give the meaning of co-operative society.

Answer

Answer: The co-operative society is a voluntary association of persons, who join together with the
motive of welfare.

9. State the minimum and maximum members required for the formation of a co-operative society.

Answer

Answer: Minimum of 5 and maximum is unlimited.

10. Name any one type of co-operative society.

Answer

Answer: Consumer co-operative society

11. State the liability of a sole trader.

Answer

Answer: Unlimited liability

12. State the liability of Karta.

Answer

Answer: Unlimited liability

13. Which act governs the partnership firms in India?

Answer

Answer: Indian Partnership Act 1932

14. Which act governs the co-operative societies in India?

Answer

Answer: Co-operative Societies Act, 1912

15. State the liability of members of co-operative societies.

Answer

Answer: Limited liability

16. State the voting principles in co-operative societies.

Answer

Answer: One man one vote

17. State the main objectives of co-operative societies.

Answer

Answer: Enhanced cooperation

18. State the liability of co-parceners.

Answer

Answer: The liability o f coparceners is always limited in nature.

19. Who is minor partner?

Answer

Answer: A partner one who have not attained the age of 18 years is called as minor partner.
20. Is registration of partnership compulsory?

Answer

Answer: As per Indian partnership Act 1932, it is not compulsory for registration of partnership.