Forms of Business Organisations Test

Result

Forms of Business Organisations Test - 24

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Weekly Quiz Competition

Question 1
1 / -0

Which one of the following does not have perpetual succession?

A
Company

B
Statutory Corporation

C
Sole Proprietorship

D
Co-operative Society

Solution

Perpetual succession means continuous without any stoppage. In case of a sole proprietorship there is only one person and the business comes to and end if the owner dies because he is the only owner. Hence, sole proprietorship does not have perpetual succession.
Question 2
1 / -0

A co-operative society can promise maximum ____ amount of interest on the money contributed by it's members.

A
9%

B
6%

C
5%

D
unlimited rate of interest
Question 3
1 / -0

If the objective for the business organization is self help as well as mutual help. It is _____________ type of organisation.

A
Partnership

B
Sole proprietorship

C
Co-operative society

D
Company

Solution

A cooperative form of business is a different form of business enterprise. In this form, the main motive is not earning profit but the main motive of the cooperative organization is mutual help. It works with the principle of each for all and all of each. A cooperative society or organization is a voluntary association of persons who join together for mutual help. A minimum of 10 persons is required to form a cooperative society. The registration of a cooperative society is compulsory and the capital of a cooperative organization is contributed by the members-only in the form of share capital. The cooperative organization can raise loans also from the banks.
Question 4
1 / -0

The choice of an appropriate form of business organisation largely depends upon:
I. Ease of formation
II. Continuity and stability
III. Liability aspects

A
I and II

B
II and III

C
I and III

D
I, II and III
Solution
Whenever a business organisation is formed it always focuses on the following points :
Ease of formation.
Continuity and stability.
Liability aspects.
If these points are found in the business organization a busness can be efficiently managed.
Question 5
1 / -0

AMUL is a __________.

A
company

B
co-operative society

C
co-operation

D
none of the above

Solution

Option B is the correct answer.
Amul is a dairy cooperative society.
Question 6
1 / -0

Why co-operative marketing society is formed?

A
To protect the interest of general consumers

B
To sell the product of small farmers and producers

C
To protect the interest of small producers

D
To provide financial support to the members
Solution
The cooperative marketing society is made up of small producers who find it difficult to sell their products at profit. The output of all the small producers is brought together and sold at the best price. Such a society helps to improve the bargaining power and competitive position of its members. It performs various marketing functions such as transportation, warehousing, packaging, grading, etc. The profit and the sale proceeds are distributed among the members according to their respective shares in the common sales pool. The main objective of marketing cooperative society are:-
1. To ensure a stable and favorable market for the output of its members.
2. To ensure the best possible price for the output.
3. To provide facilitate transportation, warehousing, packaging, etc., which individual cannot be afforded the members.
4. To assure honest trading practices in weighing, measuring, and accounting.
5. To get rid of the middlemen and have direct dealing with the customers.
Question 7
1 / -0

Voting right that vests with each member of cooperative society is ________________.

A
One member one vote

B
Right to vote in proportion of capital contributed

C
Right to vote as mentioned in memorandum

D
None of the above

Solution

The cooperative societies work with the democratic principle of "One man-one vote." All the members get only one voting right irrespective of capital contributed by them. The rich members by taking more shares cannot dictate their terms. A person who has 1000 shares and a person who has 10 shares will get one voting right only.
Hence, option (A) is the correct answer.
Question 8
1 / -0

Invariably _________ is the disadvantage of co-operative society type of organization.

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 Co-operative Societies. In this way the secrets of business become public. In this type of organization, there are open discussions in the meetings by members so it is difficult to maintain secrecy about the operations of cooperative society.
Hence, option (A) is the correct answer.
Question 9
1 / -0

The minimum number of members required to get a co-operative society registered is _______.

A
15

B
20

C
10

D
5

Solution

A cooperative form of business is a different form of business enterprise. In this form, the main motive is not earning profit but the main motive of the cooperative organization is mutual help. It works with the principle of each for all and all of each. A cooperative society or organization is a voluntary association of persons who join together for mutual help. A minimum of 10 persons is required to form a cooperative society. The registration of a cooperative society is compulsory and the capital of a cooperative organization is contributed by the members-only in the form of share capital. The cooperative organization can raise loans also from the banks.
Question 10
1 / -0

Which of the following statement is incorrect?

A
The partnership comes into existence only by an agreement

B
A person who received the profits is always partner

C
The true test of partnership is the mutual agency i.e., agency relationship among partners

D
A person who receives the profits is not necessarily a partner

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Re-Attempt Weekly Quiz Competition

Forms of Business Organisations Test - 24

Result

Forms of Business Organisations Test - 24

Score

-

Rank

-

SHARING IS CARING

Question 1

Company

Statutory Corporation

Sole Proprietorship

Co-operative Society

Solution

Question 2

9%

6%

5%

unlimited rate of interest

Question 3

Partnership

Sole proprietorship

Co-operative society

Company

Solution

Question 4

I and II

II and III

I and III

I, II and III

Solution

Question 5

company

co-operative society

co-operation

none of the above

Solution

Question 6

To protect the interest of general consumers

To sell the product of small farmers and producers

To protect the interest of small producers

To provide financial support to the members

Solution

Question 7

One member one vote

Right to vote in proportion of capital contributed

Right to vote as mentioned in memorandum

None of the above

Solution

Question 8

Business secrecy

Low prices

Limited liability

Open membership

Solution

Question 9

15

20

10

5

Solution

Question 10

The partnership comes into existence only by an agreement

A person who received the profits is always partner

The true test of partnership is the mutual agency i.e., agency relationship among partners

A person who receives the profits is not necessarily a partner

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