{"id":17811,"date":"2022-05-27T21:00:47","date_gmt":"2022-05-27T15:30:47","guid":{"rendered":"https:\/\/mcq-questions.com\/?p=17811"},"modified":"2022-05-18T15:58:08","modified_gmt":"2022-05-18T10:28:08","slug":"mcq-questions-for-class-11-business-studies-chapter-2","status":"publish","type":"post","link":"https:\/\/mcq-questions.com\/mcq-questions-for-class-11-business-studies-chapter-2\/","title":{"rendered":"MCQ Questions for Class 11 Business Studies Chapter 2 Forms of Business Organisation with Answers"},"content":{"rendered":"

Students who are searching for NCERT MCQ Questions for Class 11 Business Studies Chapter 2 Forms of Business Organisation with Answers Pdf free download are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 11 Business Studies with Answers<\/a>. You can also verify your answers from our provided Forms of Business Organisation Class 11 MCQs Questions with Answers. So, ace up your preparation with MCQ on Forms of Business Organisation Class 11 Objective Questions.<\/p>\n

Forms of Business Organisation Class 11 MCQs Questions with Answers<\/h2>\n

Question 1.
\nWhich of the following statement is NOT true about a minor partner?
\n(a) He has to bear losses also
\n(b) He can inspect books of accounts
\n(c) He has an option to continue with a firm even after attaining majority
\n(d) He shares only profits<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) He has to bear losses also<\/p>\n<\/details>\n

\n

Question 2.
\n_______ company needs to have only two directors.
\n(a) Public Company
\n(b) Sole Proprietorship
\n(c) Private Company
\n(d) None of the above<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Private Company<\/p>\n<\/details>\n

\n

Question 3.
\nWhich of the following contract is signed by the promoters with the third party on behalf of the proposed company?
\n(a) Preliminary contracts
\n(b) Provisional contract
\n(c) Prospectus
\n(d) Memorandum of association<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Preliminary contracts<\/p>\n<\/details>\n

\n

Question 4.
\nWhich one of the following is the CORRECT sequence of stages in the formation of a company?
\n(a) Promotion, incorporation, capital subscription, the commencement of business
\n(b) Incorporation, capital subscription, promotion, the commencement of business
\n(c) Promotion, the commencement of business, incorporation, capital subscription
\n(d) Promotion, Incorporation, Certificate of commencement, capital subscription<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Promotion, incorporation, capital subscription, the commencement of business<\/p>\n<\/details>\n

\n

Question 5.
\nWhich of the following business enterprises does not have a separate legal entity?
\n(a) Sole Proprietorship
\n(b) Partnership
\n(c) Company
\n(d) Cooperative Society<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Sole Proprietorship<\/p>\n<\/details>\n

\n

Question 6.
\n__________ company does not invite the public to subscribe to its share capital.
\n(a) Both Private and Public Company
\n(b) Public Company
\n(c) Private Company
\n(d) None of the above<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Private Company<\/p>\n<\/details>\n

\n

Question 7.
\nWhich of the following cooperative society is established to help small producers in selling their products?
\n(a) Producer cooperative society
\n(b) Marketing cooperative society
\n(c) Credit cooperative society
\n(d) Consumers cooperative society<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Producer cooperative society<\/p>\n<\/details>\n

\n

Question 8.
\nThe maximum number of partners allowed in the banking business are
\n(a) Ten
\n(b) No limit
\n(c) Twenty
\n(d) Two<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Ten<\/p>\n<\/details>\n

\n

Question 9.
\nAt least 10 adults, no maximum limit in case of ________
\n(a) Joint Hindu Family
\n(b) Cooperative Society
\n(c) Company
\n(d) Partnership<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Cooperative Society<\/p>\n<\/details>\n

\n

Question 10.
\nIt 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.
\n(a) Sole Proprietorship
\n(b) Cooperative Society
\n(c) Joint Hindu family business
\n(d) Partnership<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Sole Proprietorship<\/p>\n<\/details>\n

\n

Question 11.
\nWhat do you understand by the term unlimited liability?
\n(a) The personal assets of the owner can be sold when the assets of the business are not enough to
\n(b) The personal assets of the owner cannot be sold at all
\n(c) The personal assets of the owner can be sold, according to the wish of the creditors
\n(d) The personal assets of the owner can be sold, only to a limited extent<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) The personal assets of the owner can be sold when the assets of the business are not enough to<\/p>\n<\/details>\n

\n

Question 12.
\nProvision of residential accommodation to the members at reasonable rates is the objective of:
\n(a) Housing Cooperative
\n(b) Producers Cooperative
\n(c) Sleeping Partner
\n(d) Credit Cooperative<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Housing Cooperative<\/p>\n<\/details>\n

\n

Question 13.
\nHindu Succession Act was passed in _____________
\n(a) 1960
\n(b) 1956
\n(c) 1952
\n(d) 1932<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) 1956<\/p>\n<\/details>\n

\n

Question 14.
\nA prospectus is issued by
\n(a) Public company
\n(b) Private company
\n(c) Statutory Corporation
\n(d) Departmental undertaking<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Public company<\/p>\n<\/details>\n

\n

Question 15.
\nA partner whose association with the firm is unknown to the general public is called
\n(a) Active partner
\n(b) Nominal partner
\n(c) Secret partner
\n(d) Sleeping partner<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Secret partner<\/p>\n<\/details>\n

\n

Question 16.
\nWhich of the following forms of business enterprises suffer from a lack of public confidence because they are not required to publish their accounts legally?
\n(a) Partnership
\n(b) Cooperative Society
\n(c) Company
\n(d) None of the above<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Partnership<\/p>\n<\/details>\n

\n

Question 17.
\nA company cannot come into existence without
\n(a) Issuing prospectus
\n(b) Electing directors
\n(c) Certificate of incorporation
\n(d) All of the above<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (c) Certificate of incorporation<\/p>\n<\/details>\n

\n

Question 18.
\nEvery partner is both an agent and a principal. Identify the characteristic of the partnership being referred here.
\n(a) Mutual Agency
\n(b) Risk Bearing
\n(c) Membership
\n(d) Formation<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) Mutual Agency<\/p>\n<\/details>\n

\n

Question 19.
\nWhich of the following is not a feature of a Joint Stock Company?
\n(a) Artificial person
\n(b) Separate legal entity
\n(c) Formation
\n(d) Lack of business continuity<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) Lack of business continuity<\/p>\n<\/details>\n

\n

Question 20.
\nThe life of sole proprietorship business is ___________
\n(a) Very short life
\n(b) Stable
\n(c) Long life
\n(d) Unstable<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) Unstable<\/p>\n<\/details>\n

\n

Question 21.
\nThe partnership deed generally includes the following
\n(a) Name of firm
\n(b) Nature of business
\n(c) Location of business
\n(d) All of the above<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (d) All of the above<\/p>\n<\/details>\n

\n

Question 22.
\nThe form of business organization that has the largest sales volume is the:
\n(a) Partnership
\n(b) Corporation
\n(c) Cooperative
\n(d) Multinational<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (b) Corporation<\/p>\n<\/details>\n

\n

Question 23.
\nA prospectus is issued by
\n(a) A public company seeking investment, from public
\n(b) A private company
\n(c) A public company
\n(d) A public enterprise<\/p>\n

\nAnswer<\/span><\/summary>\n

Answer: (a) A public company seeking investment, from public<\/p>\n<\/details>\n

\n

Use the above-provided NCERT MCQ Questions for Class 11 Business Studies Chapter 2 Forms of Business Organisation with Answers Pdf free download and get a good grip on the fundamentals. Need any support from our end during the preparation of CBSE Class 11 Business Studies Forms of Business Organisation MCQs Multiple Choice Questions with Answers then leave your comments below. We’ll revert back to you soon.<\/p>\n","protected":false},"excerpt":{"rendered":"

Students who are searching for NCERT MCQ Questions for Class 11 Business Studies Chapter 2 Forms of Business Organisation with Answers Pdf free download are compiled here to get good practice on all fundamentals. Know your preparation level on MCQ Questions for Class 11 Business Studies with Answers. You can also verify your answers from …<\/p>\n

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