Forms of Business Organisations Test

Result

Forms of Business Organisations Test - 22

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Weekly Quiz Competition

Question 1
1 / -0

An Indian citizen cannot make ___________ form of organization in America.

A
HUF

B
Partnership

C
Company

D
Society

Solution

A Hindu Undivided Family is regulated by the Hindu succession act. It consists of karta the head of the family and co-parceners, the members of the family. It does not need any regulation or legal formalities to set up. In America, in order to set up business many legal formalities are necessary. Hence, an Indian citizen cannot make form of organisation in America.
Question 2
1 / -0

What is one of the best advantages of proprietorship?

A
Shares can be sold to raise capital

B
Profits are to be shared

C
The owner has independence

D
Limited liability is enjoyed
Solution
A business which is owned and managed by a single person is called as sole proprietorship. The advantages of this are:
No sharing of profit.
The owner is independent.
Owner only makes decisions.etc.
Question 3
1 / -0

Limited liability partnership possesses not more than 2 of the following character.
1. Limited liability
2. Raise funds from public
3. No separation of management from owners
4. No Restriction on number of partners.

A
2 and 4

B
1 and 2

C
1 and 3

D
1 and 4
Solution
Limited liability company is a partnership in which some or all partners have limited liability. There is no restriction on number of partners to enter in this firm. Hence, it possess 2 characteristics:
Limited liability.
Raise funds from public.
Question 4
1 / -0

Which of the following can have minor as members?

A
HUF

B
Proprietorship

C
Private limited Company

D
All of the above

Solution

Hindu undivided family is a business carried out by hindus which involves karta, the head of the family and co-parceners who are the members of the family. It can have minor as a member because no registration under any Act is required for setting up HUF.
Question 5
1 / -0

Looking at the below mentioned options one of the advantages of a partnership form of business organization is that _______.

A
all partners always have limited liability

B
all the decisions are taken by one partner

C
the business survives on the death of the partners

D
the business has access to more capital than a sole trader
Solution
A business which is carried out by two or more persons together is called as partnership firm. The features of this firm are:
Equal sharing of profit between all partners.
Decision making is done by all the partners together.
Their liability is unlimited, joint and several.
They have large capital as compared to sole trading concern.
Question 6
1 / -0

Invariably is the disadvantage of co-operative society ________.

A
business secrecy

B
low prices

C
limited liability

D
open membership

Solution

Co-operative societies have to send their annual reports and accounts to the Registrar of cooperative societies.In this way, the secrets of business become public and hence there is lack of secrecy.
Question 7
1 / -0

As per section 58 of the Partnership Act, a statement on various matters for registration of the firm is required to be signed by.........

A
All the partners or duly authorized agent

B
Sr. partner

C
Managing partner of the firm

D
Secretary of the firm

Solution

Option A is the correct answer.
Question 8
1 / -0

Among the following, which statement about co-operative business organizations is true?

A
All co-operatives are only for public sector

B
Profits are shared equally amongst members

C
They are owned by government

D
Workers have no say in decision-making

Solution

A co-operative organisation is an association of persons united voluntarily to meet a common economic, social and cultural needs and aspirations through a jointly owned enterprise. All the members of a co-operative business organisations share profits equally.
Question 9
1 / -0

Karta of HUF is the ________ of his family.

A
creditor

B
representative

C
employee

D
none of the above

Solution

A Hindu Undivided Family is regulated by the Hindu succession Act. It consists of karta the head of the family and co-parceners, the members of the family. Hence, Karta of HUF is of his family representative.
Question 10
1 / -0

Limited liability is enjoyed by ________.

A
a general partnership

B
a corporation

C
a sole proprietorship

D
none of the above

Solution

A corporation is a group of people or company authorized to act as a legal entity which is recognized by Law. It has a limited liability distinct from its members. The owner and the company are two different persons.

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Re-Attempt Weekly Quiz Competition

Forms of Business Organisations Test - 22

Result

Forms of Business Organisations Test - 22

Score

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Rank

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SHARING IS CARING

Question 1

HUF

Partnership

Company

Society

Solution

Question 2

Shares can be sold to raise capital

Profits are to be shared

The owner has independence

Limited liability is enjoyed

Solution

Question 3

2 and 4

1 and 2

1 and 3

1 and 4

Solution

Question 4

HUF

Proprietorship

Private limited Company

All of the above

Solution

Question 5

all partners always have limited liability

all the decisions are taken by one partner

the business survives on the death of the partners

the business has access to more capital than a sole trader

Solution

Question 6

business secrecy

low prices

limited liability

open membership

Solution

Question 7

All the partners or duly authorized agent

Sr. partner

Managing partner of the firm

Secretary of the firm

Solution

Question 8

All co-operatives are only for public sector

Profits are shared equally amongst members

They are owned by government

Workers have no say in decision-making

Solution

Question 9

creditor

representative

employee

none of the above

Solution

Question 10

a general partnership

a corporation

a sole proprietorship

none of the above

Solution

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