DEPARTMENT OF COMMERCE

St. Joseph’s College (Autonomous)

Tiruchirappalli – 620 002
Course B.Com
Paper
Sem I 14UCO130202 Units I–V
Code
Title of the
BUSINESS ORGANISATION
Paper
Staff Name Dr.V.BASTIN JEROME

UNIT I

1 What are the benefits of a private limited company?

a) A business that owned b) legal matters to attend to
and operated by a single accounts must be shown to the
person general public there is a split
between ownership and
control very costly
c) No limited liability no d) Capital can be raised from
continuity Owner has to sale of shares Limited liability
manage all risks for shareholders There is a
separate legal identity
Business has continuity
ANS: d) Capital can be raised from sale of shares Limited
liability for shareholders There is a separate legal
identity Business has continuity

2. What are the advantages of joint ventures?

a) People who agree to b) Costs are divided Risks are
work together and pool more spread out
resources together
c) shares cannot be sold to d) legal matters to attend to
the general public legal accounts must be shown to the
matters to attend to general public there is a split
 accounts of the company between ownership and
have to be shown to the control very costly
public share transfer is
difficult
ANS: b) Costs are divided Risks are more spread out

3. What are cooperatives?

a) A business that is based b) Shares can be sold to the
upon an existing general public Rapid
successful business expansion possible Limited
using it's rand names, liability Continuity of the
trading methods, logos business
etc
c) legal matters to attend to d) People who agree to work
accounts must be shown together and pool resources
to the general public together
there is a split between
ownership and control
very costly
ANS: d) People who agree to work together and pool resources
together

4. What are the benefits of being a sole trader?

a) Owner in complete b) Shareholders and members of
control Keeps all profits the company will not have to
There is incentive to sell off personal belongings.
work hard Easy set up
c) Much faster expansion d) A business that is run by 2-20
The franchisor does not people
have to manage all the
outlets All products
must be obtained from
the franchisor
ANS: a) Owner in complete control Keeps all profits There is
incentive to work hard Easy set up
5. What are the five main forms of business organizations?
a) A business that owned b) Sole trader, partnership,
and operated by a single private limited companies,
person public limited company and
co operatives
c) A business that is run by d) legal matters to attend to
2-20 people accounts must be shown to the
general public there is a split
between ownership and
control very costly
ANS: b) Sole trader, partnership, private limited companies,
public limited company and co operatives

6. What are the disadvantages of a public limited company?

a) They are two or more b) Much faster expansion The
businesses agreeing to franchisor does not have to
work together to achieve manage all the outlets
a single task All products must be obtained
from the franchisor
c) legal matters to attend to d) No limited liability No
accounts must be shown continuity No separate legal
to the general public identity
there is a split between
ownership and control
very costly
ANS: c) legal matters to attend to accounts must be shown to
the general public there is a split between ownership
and control very costly
7. What are the disadvantages of a partnership?
a) shares cannot be sold to b) No limited liability No
the general public legal continuity No separate legal
matters to attend to identity
accounts of the company
have to be shown to the
 public share transfer is
difficult
c) Less freedom May not d) Shares can be sold to the
be able to make a general public Rapid
decisions that will suit expansion possible Limited
the local area License liability Continuity of the
fees have the be paid business
ANS: b) No limited liability No continuity No separate legal
identity

8. What are the benefits of a public limited company?

a) Shares can be sold to the b) Less freedom May not be able
general public Rapid to make a decisions that will
expansion possible suit the local area License fees
Limited liability have the be paid
Continuity of the
business
c) shares cannot be sold to d) Shareholders and members of
the general public legal the company will not have to
matters to attend to sell off personal belongings.
accounts of the company
have to be shown to the
public share transfer is
difficult
ANS: a) Shares can be sold to the general public Rapid
expansion possible Limited liability Continuity of the
business
9. What are the disadvantages of a private limited company?
a) legal matters to attend to b) shares cannot be sold to the
accounts must be shown general public legal matters to
to the general public attend to accounts of the
there is a split between company have to be shown to
ownership and control the public share transfer is
very costly difficult
c) Shareholders and d) Capital can be obtained from
 members of the company all partners Shared
will not have to sell off responsibilities more ideas
personal belongings can be given partners can
specialize in a certain task

ANS: b) shares cannot be sold to the general public legal

matters to attend to accounts of the company have to be
shown to the public share transfer is difficult

10. What is the definition of limited liability?

a) Poor management may b) A business that owned and
lead to a bad reputation operated by a single person
for the whole business
the profits of the outlet
are given to the
franchisee
c) Shareholders and d) legal matters to attend to
members of the company accounts must be shown to the
will not have to sell off general public there is a split
personal belongings. between ownership and
control very costly
ANS: c) Shareholders and members of the company will not
have to sell off personal belongings.

11 Which of the following cannot be classified as an objective of

business?
a) Investment b) Productivity
c) Innovation d) Profit earning
ANS: a) Investment

12. What is the advantage of sole proprietorship?

a) Small capital b) Hasty decision
c) Limited capital d) Limited managerial ability
 ANS: c) Limited capital

13. The agreement of partnership

a) Must be oral b) Must be in writing

c) Must be writing in the d) Can be either oral or in writing

stamp paper
ANS: c) Must be writing in the stamp paper

14. Partnership may come into existence

a) By the operation of law b) By an express agreement
c) By an express or implied d) By inheritance of property
agreement
ANS: b) By an express agreement

15. Management of a Joint stock company is entrusted to.

a) The Registrar of b) The Board of Directors
companies
c) The shareholder d) The debenture holders
ANS: b) The Board of Directors

16. Registration is compulsory in the case of

a) A Sole trader b) A partnership
c) A joint stock company d) A joint Hindu family business
ANS: c) A joint stock company

17. In a co-operative society

a) One share one vote b) One man one vote principle is
principle is followed followed
c) A member must have 2 d) Shares are transferable.
votes
ANS: b) One man one vote principle is followed
18. Co-operative society can be started
a) Only in villages b) In towns and villages
c) Only in cities d) Only in State headquarters
ANS: b) In towns and villages

19. The most suitable form of organisation for operating defence

industries is
a) Government Company b) Public corporation
c) Departmental organisation d) Board organization
ANS: c) Departmental organisation

20. . The share capital of the government company must not be less
than
a) 75% b) 60%
c) 95% d) 51%
ANS: d) 51%

21. A multinational company is also known as

a) Global giant b) Partnership
c) Co-operative society d) Public corporation
ANS: a) Global giant

22. Membership by birth is main feature in

a) Sole trader b) Joint Hindu family business
c) Co-operative society d) Partnership
ANS: b) Joint Hindu family business

23. Sole trading business can be started by:

a) At least two persons b) At least seven persons
c) Any one person d) At least six persons
ANS: c) Any one person
24. The liability of a sole trader is:
a) Limited only to his b) Limited to total property of the
investment in the business business
c) Unlimited d) None of the Above
ANS: c) Unlimited

25. Sole proprietorship is suitable for:

a) Large scale concerns b) Medium scale concerns
c) Small scale concerns d) None of the Above
ANS: c) Small scale concerns

26. Decision-making process in sole trading business is:

a) Quick b) Slow
c) Neither quick nor slow d) None of the Above
ANS: a) Quick

27. A sole trader:

a) Cannot keep his business b) Can keep his business secrets
secrets
c) Has no business secrets d) None of the above
ANS: b) Can keep his business secrets

28. A partnership is formed by

a) Agreement b) Relationship among persons
c) The direction of d) No any requirements
government
ANS: a) Agreement

29. The basis of partnership is

a) Utmost good faith b) Money available for
investment
c) Desire to work together d) None of these
 ANS: a) Utmost good faith

30. A partnership firm may be registered under

a) 1949 Act b) 1956 Act
c) 1932 Act d) 1942
ANS: c) 1932 Act

UNIT II

31. Registration of partnership is

a) compulsory b) optional
c) not necessary d) upto the opinion of partners
ANS: b) Optional

32. In partnership there exists a relationship of

a) principal and agent b) owner and servant
c) employer and employee. d) Bailor and Bailee
ANS: a) principal and agent

33. Registration of a joint stock company is

a) Compulsory b) Optional
c) Compulsory for public d) Optional for public limited
limited companies and companies and compulsory for
optional for private private limited companies
limited companies
ANS: a) Compulsory

34. The minimum number of members for a public limited company is

a) 2 b) 3
c) 7 d) 10
ANS: c) 7
35. The liability of shareholders of a private limited company is limited
to
a) the paid up value of the b) amount remaining unpaid on
shares the shares
c) the extent of private assets d) amount called up
ANS: b) amount remaining unpaid on the shares

36. A private limited company can commence business

a) immediately on receiving b) only after the certificate of
the certificate of commencement of business is
incorporation received
c) on getting name approval d) on filing all the documents
from the Registrar necessary for formation with
the Registrar
ANS: a) immediately on receiving the certificate of
incorporation
37. The existence of a company comes to a close
a) on the death of all its b) on death of all the directors of
promoters the Board
c) on transfer of shares by d) none of the above
most of its original
members
ANS: d) none of the above

38. Table A of the Companies Act is a

a) model minutes book b) model form of balance sheet
c) model of Articles of d) model of memorandum of
Association association
ANS: b) model form of balance sheet

39. Which of the following documents define the scope of a company’s

activities?
a) Memorandum of b) Articles of Association
 Association
c) Prospectus d) Statutory Declaration
ANS: a) Memorandum of Association

40. Which of the following is created by a Special Act of Parliament or

in State Assemblies?
a) Chartered company b) Foreign company
c) Government company d) Statutory company
ANS: d) Statutory company

41. Which of the following companies must file with the Registrar a
statement in lieu of prospectus?
a) a public limited company b) a public limited company
which raises funds from which has made arrangement
the public through issue for racing its capital from
of shares directors and their relatives
c) a private limited company d) all of them
ANS: b) a public limited company which has made arrangement
for racing its capital from directors and their relatives

42. The minimum subscription specified in the prospectus must be

received within
a) 90 days b) 120 days
c) 130 days d) 60 days
ANS: a) 90 days

43. A preference share has priority in

a) dividend only b) only in return of capital at the
time of winding up
c) voting rights d) both dividend and return of
capital on winding up
ANS: d) both dividend and return of capital on winding up

44. Shares can be forfeited for

 a) non-payment of any debt b) not attending three annual
due to the company general meetings
consecutively
c) for non payment of call d) for violent activities at the
money annual general meetings
ANS: c) for non payment of call money

45. Where the shares are issued at a discount and the nominal value of
share is Rs.100, the maximum discount that can be allowed is
a) Rs.5 b) Rs.10
c) Rs.20 d) Rs.15
ANS: b) Rs.10
46. Debenture holders of a company are its
a) Creditors b) Members
c) Credit customers d) Borrowers
ANS: a) Creditors

47. Debenture holders are entitled to receive interest in the following

circumstances
a) when there are profits b) when shareholders also get
dividend
c) every year irrespective of d) all the above
loss
ANS: d) all the above

48. Co-operative society can be started

a) Only at villages b) In towns and Villages
c) Only in cities d) Only in urban areas
ANS: b) In towns and Villages

49. The minimum number of members required to from a co-operative

society is
a) 2 b) 7
 c) 10 d) 25
ANS: d) 25

50. Dividend is declared in a co-operative store to its members.

a) Share capital b) Number of shares purchased
c) Amount of patronage d) None of the above
given
ANS: c) Amount of patronage given

51. The basic objective of a co-operative society is

a) Earn profit b) Organise some essential
service for the benefit of its
member
c) Organize essential d) Arrange for enough of quality
services to the goods for the community
community.
ANS: b) Organise some essential service for the benefit of its
member

52. In a co-operative society, the shares of a member

a) Can be transferred b) Can be repaid
c) Cannot be transferred d) None of the above
ANS: b) Can be repaid

53. Maximum membership in a co-operative society is

a) 50 b) 60
c) 100 d) Unlimited
ANS: d) Unlimited

54. A co-operative super market supplies

a) Credit b) service
c) Goods d) Cash
 ANS: c) Goods

55. Consumers co-operation was first successful in

a) England b) USA
c) Swiss d) India
ANS: a) England

56. Minority interest can be protected in

a) Sole trader b) Partnership
c) Co-operative societies d) Public Company
ANS: c) Co-operative societies
57. Central Co-operative bank is established at
a) Villages b) Districts
c) State head quarters d) Urban areas
ANS: b) Districts

58. Government companies are registered under

a) Special statute of b) Companies Act, 1956
Government
c) Royal charter d) Order of the Government
ANS: b) Companies Act, 1956

59. In a public corporation the management has

a) Limited freedom b) No freedom of action
c) Controlled freedom d) Unrestricted freedom of
action.
ANS: c) Controlled freedom

60. For the efficient working of state enterprise the form of

organisation generally considered suitable is
a) Departmental b) Public corporation
organization
 c) Government company d) None of these
ANS: b) Public corporation

UNIT III

61. Public can also subscribe to the share capital of

a) Public corporation b) Departmental undertaking
c) Government company d) None of these
ANS: c) Government company

62. In a government company the share capital of the government must

not be less than
a) 51% b) 60%
c) 75% d) 90%
ANS: a) 51%

63. The size of business units is measure by

a) Market share b) Turnover
c) Capital employed d) All of the Above
ANS: d) All of the Above

64. GATT agreement is closely connected with

a) Capital b) Globalisation
c) Market d) Borrowings
ANS: b) Globalisation

65. ______________ a combining of business firms engaged in

different phases of the manufacture and distribution of a product
into an interacting whole.
a) Vertical Combination b) Horizontal Combination
c) Lateral Combination d) None of these
ANS: a) Vertical Combination
66. ______________________this type of combination is one that
involves companies within the same industry that have been
previously competitors.
a) Horizontal Combination b) Vertical Combination
c) Lateral Combination d) None of these
ANS: a) Horizontal Combination

67. Location of plant is an important factor in ________

a) entrepreneurial decision b) business function
c) profit maximization d) customer convenience
ANS: a) entrepreneurial decision

68. The first systematic theory of industrial location was propounded

by________
a) Alfred weber b) F W Taylor
c) Sargent Florence d) Henry Fayol
ANS: a) Alfred weber

69. The secondary factor of plant location is otherwise called as

_________
a) agglomerative factor b) transport factor
c) industrial factor d) market factor
ANS: a) agglomerative factor

70. Location factor depends on __________

a) no of workers in region b) no of workers throughout the
country
c) proximity of market d) plant facility
ANS: c) proximity of market

71. The location factor also known as _______

a) industrial factor b) location quotient
c) industrial population d) none of these
 ANS: b) location quotient

72. The most important factor in the plant location is ___________

a) availability of customers b) availability of dealers
c) availability of raw d) markets
materials
ANS: c) availability of raw materials

73. Proximity of market is known as ____________

a) Nearness to the market b) presence of more shops
c) transport facility d) more dealers
ANS: a) Nearness to the market

74. The quote “plant location is often the result of a compromise

among conflicting social, political, economic consideration “said
by ______
a) Spriegl b) F.W. Taylor
c) Peter Drucker d) Philip Kotler
ANS: a) Spriegl

75. The pull factor of labour is known as __________

a) downsizing of labour b) labour migration
c) labour turn over d) none of these
ANS: b) labour migration
76. Choice of plant location is a __________
a) long term decision b) short term decision
c) timely decision d) none of these
ANS: a) long term decision

77. The problem of location arise when __________

a) start of a new business b) the time of expansion
c) shifting the business unit d) labour scarcity
ANS: a) start of a new business
78. The cost of raw material is the same at all places even though the
distribution of deposits of raw materials is uneven”- who said?
a) Adam smith b) Herzberg
c) Weber d) Thomas Malthus
ANS: c) Weber

79. Ubiquitous materials are known as __________

a) available in everywhere b) available only in particular
region
c) available in only in d) available in only in particular
particular season country
ANS: a) available in everywhere

80. Localized materials are known as __________

a) available in everywhere b) available only in particular
region
c) available in only in d) available in only in particular
particular season country
ANS: b) available only in particular region

81. Split location refers to _________

a) more than one place b) more than one region
c) small unite with in a d) present in various country
particular location
ANS: a) more than one place

82. The inductive theory of plant location is was propounded

by__________
a) Alfred weber b) F W Taylor
c) Sargent Florence d) Henry Fayol
ANS: c) Sargent Florence

83. The government policy of plant location is known as __________

 a) external factor b) state regulation
c) legal factor d) none of these
ANS: b) state regulation
84. Urban site is known as __________
a) present in village side b) present in city side
c) present in the outskirt of d) present in the remote area
the city
ANS: b) present in city side

85. The need for the government policy in the selection of plant
location is to ___________
a) to ensure balanced b) to develop local resources
regional development of
the country
c) to make efficient d) all these above
utilization of natural
resources
ANS: a) to ensure balanced regional development of the country

86. The industrial policy resolution was passed in the year

_____________
a) 1980 b) 2001
c) 1990 d) 2000
ANS: a) 1980

87. DIC is a __________

a) private sector b) public sector
c) quasi-public sector d) an autonomous sector
ANS: b) public sector

88. The expansion of DIC is __________

a) district industrial b) department of industrial
corporation corporation
c) district industries centre d) district individual company
 ANS: c) district industries centre

89. The DIC is monitored by ______________

a) industrial commissioner b) general manager
c) district collector d) marketing manager
ANS: a) industrial commissioner

90. The expansion of DIEC is __________

a) district industrial b) department of industrial
executive committee executive committee
c) direct industrial executive d) disciplinary and industrial
committee executive committee
ANS: a) district industrial executive committee

UNIT IV
91. SWIFT is known as ____________
a) single window industrial b) systematic window industrial
follow up team follow up team
c) state window industrial d) state vigilance industrial
follow up team follow up team
ANS: a) single window industrial follow up team

92. SIPCOT is known as ______________

a) single industrial b) state industries promotion
promotion corporation of corporation of Tamil Nadu
India
c) systematic industrial d) state industry promotion
promotion corporation of corporation of Tamil Nadu
India
ANS: b) state industries promotion corporation of Tamil Nadu

93. SIPCOT was formed in the year ______________

a) 1971 b) 1960
c) 1990 d) 2000
 ANS: a) 1971

94. The chief administrator of the SIPCOT is _________

a) the district collector b) the state industries minister
c) the central industries d) the state secretary to
minister government of industries
ANS: d) the state secretary to government of industries

95. The functions of the SIPCOT is __________

a) development of industrial b) development of industrial
complexes parks
c) development of industrial d) all these above
estates
ANS: d) all these above

96. SIPCOT has its industrial complex in __________

a) Ooty b) Bargur
c) Trichy d) Chidambaram
ANS: b) Bargur

97. When one company holds or buys more than 50%of the share in
another company is known as_____
a) holding company b) subsidiary company
c) complete consolidation d) amalgamation
ANS: a) holding company

98. Expansion of GATT is ________

a) general agreement on b) general agreement on trade
tariff and trade and tariff
c) general agreement on tax d) None of the Above
and trade
ANS: a) general agreement on tariff and trade

99. Competition act was enacted in the year ______

 a) 2000 b) 2001
c) 2002 d) 2003
ANS: c) 2002
100 FDI stands for ________
a) foreign direct investment b) foreign direct investors
c) foreign directorate d) None of the Above
investment
ANS: a) foreign direct investment

101 Expansion of SEBI_________

a) securities exchange board b) securities and Exchange board
of India of India
c) Securities External Bank d) None of the Above
of India
ANS: a) securities exchange board of India

102 Integration of main activity or process with ancillary activities and

services is known______________
a) circular combination b) label combination
c) diagonal combination d) None of these
ANS: c) diagonal combination

103 The companies act enacted in ______

a) 1954 b) 1955
c) 1956 d) 1966
ANS: c) 1956

104 WTO headquarters situated in _____

a) India b) Japan
c) Geneva d) Singapore
ANS: c) Geneva

105 LDC stands for_____

a) Least Distance Countries b) Least developed countries
 c) local development council d) least developing countries
ANS: b) Least developed countries
106 Horizontal combination of business is known as ______
a) Process integration b) parallel integration
c) industry integration d) diagonal integration
ANS: b) parallel integration

107 Purchase of one company by another company is known as

_______
a) Agglomeration b) merger
c) demerger d) Acquisition
ANS: d) Acquisition

108 New economic policy was introduced in the year_________

a) 1990 b) 1991
c) 1992 d) 1993
ANS: b) 1991

109 The process of redesigning of one or more aspects of a company is

________________
a) business combination b) demerger
c) corporate restructuring d) take over
ANS: c) corporate restructuring

110 Capital is:

a) Money available to invest. b) Prohibitive cost of entry.
c) A guarantee that a d) A & B.
company will be
successful.
ANS: a) Money available to invest.

111 What is an entrepreneur?

a) A. Someone who invests b) Someone who makes a lot of
time and money to start a money.
 business.
c) Someone who takes a risk d) Both A & C.
to make a profit.
ANS: d) Both A & C.

112 LPP stands for

a) Limited liability b) Limited liability party
partnership
c) Limited level partnership d) Limited liquidity partnership
ANS: a) Limited liability partnership

113 ------------------------- merger is a combination in which a firm in

one industry combines with a firm from an unrelated industry.
a) Conglomerate b) Vertical
c) Horizontal d) None of the above
ANS: a) Conglomerate

114 MNCs (Multinational Corporations) can be defined as a firm

which:
a) is beyond the control of b) is one of the largest 200 firms
any government. in the world.
c) owns companies in more d) all of the above.
than one country.
ANS: c) owns companies in more than one country.

115 WTO stands for

a) World Trade Organisation b) World Tariff Organisation
c) World Testing d) None of the Above
Organisation
ANS: a) World Trade Organisation

116 ____________may be defined as an institution organized and

operated to provide goods and services to the society with the
objective of earning profit.
 a) Business b) Profession
c) Business and Profession d) None of the Above.
ANS: a) Business

117 __________may be defined as an occupation which involves the

rendering of personal services of a specialized nature, based on
professional knowledge, education and training such as services
rendered by physicians, lawyers, auditors. etc .
a) Business b) Profession
c) Business and Profession d) None of the Above.
ANS: b) Profession

118 Goods used by final consumers are called_______________

a) Capital Goods b) Consumer Goods
c) Intermediate Goods d) None of the Above
ANS: b) Consumer Goods

119 ________________ industries extract or draw our their products

from natural sources such
as earth, sea, air.
a) Extractive Industries b) Genetic Industries
c) Manufacturing Industries d) Construction Industries
ANS: a) Extractive Industries

120 ___________________________ engaged in breeding plants, and

animals for their use in further reproduction.
a) Extractive Industries b) Genetic Industries
c) Manufacturing Industries d) Construction Industries
ANS: b) Genetic Industries

UNIT V

121 ______________ industries are engaged in the conversion or

transformation of raw materials or semi finished products into
finished products.
 a) Extractive Industries b) Genetic Industries
c) Manufacturing Industries d) Construction Industries
ANS: c) Manufacturing Industries

122 _______________________ industries concerned with the making

of constructing of buildings, bridges, dams, roads, canals, etc.
a) Extractive Industries b) Genetic Industries
c) Manufacturing Industries d) Construction Industries
ANS: d) Construction Industries

123 Trade refers to_______

a) Sale b) transfer
c) exchange of goods and d) All of the Above
services
ANS: d) All of the Above

124 ________________________consists of buying and selling of

goods within the boundaries of a country and the payment for the
same is made in national currency.
a) Domestic Trade b) Foreign Trade
c) Illegal Trade d) None of the Above
ANS: a) Domestic Trade

125 The degree of retention of business secrecy is the highest in this

form of organization.
a) Partnership b) Sole trader
c) Company d) o-operative Society.
ANS: b) Sole trader

126 The ____________________________is formed on the principle of

democracy which means “ One vote for one member
a) Partnership b) Sole trader
c) Company d) Co-operative Society
ANS: d) Co-operative Society
127 ______________________ is the written agreement setting out all
the terms and conditions of partnership.
a) Partnership Deed b) Prospectus
c) AOA d) MOA
ANS: a) Partnership Deed

128 Perpetual Succession is one of the features of _________________

a) Partnership b) Sole Trader
c) Company d) None of the Above
ANS: c) Company

129 The maximum number of members is unlimited in _____________

Company.
a) Public Company b) Private Company
c) A & B d) None of the Above
ANS: a) Public Company

130 Maruti and Suzuki is the best example for_________________

a) Joint Venture b) Private Company
c) Multi National Company d) None of these
ANS: a) Joint Venture

131 The oldest form of business organisation is

a) Partnership b) Sole proprietorship
c) joint stock company d) Co-operative undertaking
ANS: b) Sole proprietorship

132 In which of the following forms of business organisation

registration is loyally compulsory.
a) Sole Proprietorship b) Partnership
c) joint stock company d) co-operative undertaking
ANS: c) joint stock company

133 The maximum number of partners in a firm carrying on banking

business is
 a) 7 b) 10
c) 50 d) 20
ANS: b) 10

134 In a broader sense, the activities of a co-operative organisation are

expected to ensure primarily
a) Profitability to the b) Socialism in the economy
members
c) Equity to the members d) Productivity to the society
ANS: b) Socialism in the economy

135 Reserve bank of India is an example of

a) Departmental organisation b) Govt. Company
of the Central Govt.
c) Public Corporation d) None of these
ANS: c) Public Corporation

136 One of the impelling causes of business combination is

a) Desire for business b) Wasteful organisation
c) Influence of tarrifs d) Rationalisation
ANS: b) Wasteful organization

137 When three sugar mills combine it is an example of

a) Horizontal Combination b) Vertical Combination
c) Lateral Combination d) Circular Combination
ANS: a) Horizontal Combination

138 Amalgamation is a form of

a) Trade association b) Federation
c) Partial Consolidation d) Complete Consolidation
ANS: d) Complete Consolidation

139 MRTP Act does not apply to

a) Private Ltd. Company b) Public Ltd. Company
c) Govt. Company d) Sole Proprietory Business
 ANS: c) Govt. Company

140 Chamber of commerce is a form of

a) Association b) Federation
c) Partial Consolidation d) Complete Consolidation
ANS: a) Association

141 The sole trader is a/an ___________ of his business

a) manager b) monarch
c) Leader d) agent
ANS: b) monarch

142 The co-operative societies act was introduced during the year
a) 1912 b) 1914
c) 1922 d) 1902
ANS: a) 1912

143 The first stock exchange was setup in India in

a) Chennai b) Delhi
c) Mumbai d) Calcutta
ANS: c) Mumbai

144 RBI is a
a) Statutory Co. b) Banking Co.
c) Financial Co. d) Central Co.
ANS: a) Statutory Co.

145 LIC is a
a) Limited Corporation b) Statutory Company
c) Unlimited Company d) Govt. Company
ANS: b) Statutory Company

146 Business is known as

a) Buying and selling b) Economic Activity
process
 c) Social Activity d) All of the Above
ANS: d) All of the Above
147 A Profession must need
a) More Money b) Proper Training
c) Systematic work d) Geographical premises
ANS: b) Proper Training

148 Companies Act was introduced in the year

a) 1926 b) 1936
c) 1946 d) d) 1956
ANS: d) d) 1956

149 ._________contains internal rules and regulations of the Company.

a) Company Book b) Articles of Association
c) Log Book d) MOA
ANS: b) Articles of Association

150 Which of the following cannot be classified as an objective of

business?
a) Innovation b) Investment
c) Productivity d) Profit earning
ANS: b) Investment

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