Forms of Business Organisations Test

Result

Forms of Business Organisations Test - 29

Score
-
out of -
Rank
-
out of -

TIME Taken - -

SHARING IS CARING

If our Website helped you a little, then kindly spread our voice using Social Networks. Spread our word to your readers, friends, teachers, students & all those close ones who deserve to know what you know now.

Weekly Quiz Competition

Question 1
1 / -0

The relationship of partnership arises out of _________.

A
an agreement

B
statute

C
operation of law

D
both an agreement and statute

Solution

The relationship of partnership arises out of an agreement or deed. The written agreement of partnership is called a partnership deed. It is a contract between two or more individuals who decide to manage and operate a business together for profit-making. The agreement defines the management roles and once the Partnership agreement is completed, all of the Partners will sign and date the agreement and keep copies of the agreement for their records.
Thus the correct answer is A.
Question 2
1 / -0

A business started by only one person is called________.

A
Company

B
Sole proprietorship

C
Trust

D
Society

Solution

A business started by only one person is called a sole proprietorship, it is the simple type of business to establish due to a lack of government regulation. These types of businesses are very popular among sole owners of businesses, individual self-contractors, and consultants. Many sole proprietors do business under the registration of their own names is not necessary for these types of business.
Thus the correct answer is B.
Question 3
1 / -0

Agreement to share profits in a partnership firm ________.

A
must be coupled with an agreement to share losses

B
is same as agreement to share losses

C
implies an agreement to share losses

D
does not necessarily mean an agreement to share losses.

Solution

As per Section 4 of the Indian Partnership Act, 1932"Partnership" is the relation between persona who have agreed to share the profits of business carried on by all. Each person contributed money, property, labour or skill and expects to share in the profits and losses of the business.
Question 4
1 / -0

In which of the following cases, a partnership firm may be dissolved?
X. On the death of a partner.
Y. On the insolvency of a partner
Z. On the retirement of a partner
Correct option is _______________.

A
X and Y

B
X and ?-

C
Y and Z

D
X, Y and Z

Solution

Partnership may get dissolved in the following cases :
1. On the death of partner : The death of the partner may affect the working of the organization. As these partners are dependent on each other. So the partnership may get dissolved and new partnership is formed.
2. On the insolvency of a partner : When a partner becomes banckrupt or insolvent which means his liabilities are more than the assets he owns , partnership firm gets dissolved and new partnership is formed.
3. On retirement of the partner : On the retirement of the partners account is settled and new partnership deed is formed.
Question 5
1 / -0

A partner who does not get actively involved in business is a _________ partner.

A
active

B
sleeping or dormant

C
nominal

D
sub-partner

Solution

Sleeping Partner or Dormant partner - A sleeping partner is a partnership business who does not play an active role, especially one who supplies capital and whose association with the enterprise is not public knowledge. He has share in profit and loss of business.
Question 6
1 / -0

True Test of existence of partnership is _________.

A
mutual agency

B
sharing of profits

C
sharing of osses

D
all of the above

Solution

The true test of partnership is mutual agency which means the existence of a Mutual Agency relationship, i.e. the capacity of a partner to bind other partners by his acts done in the firm’s name and also bound by the acts of other partners. In partnership sharing of profit is an important element of partnership but it is not a conclusive proof of partnership.
Thus the Correct answer is A.
Question 7
1 / -0

Person doing business solely is known as ________.

A
single person

B
sole proprietor

C
company

D
partner

Solution

Sole proprietorship refers to a form of business organisation which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks
Question 8
1 / -0

A Company Secretary _____________________.

A
has nothing to do with the directors, of the company

B
is never in touch with any government department

C
occupies an important place in a corporate setup

D
does not have to correspond with the investors

Solution

Company secretary occupies an important place in a corporate set up. As per Companies Act 2013, a Company Secretary is a key managerial person.
Question 9
1 / -0

Statement A : Easy to form is advantage of sole proprietorship form of business.
Statement B: Easy to wind up is advantage of sole proprietorship form of business.

A
Statement A is true but Statement B is false

B
Statement A is false but Statement B is true

C
Both Statement A and B are true

D
Both Statement A and B are false

Solution

Both the statements are correct because easy to form is the advantage of sole proprietorship form of business and easy to wind up is also an advantage of sole proprietorship form of business, both are the key advantages of the sole proprietorship, any individual can easily set up the sole proprietorship because of the fewer rules and regulations applicability on the same.
Thus the correct answer is C.
Question 10
1 / -0

Sole proprietorship form is most suitable ___________.

A
Where the nature of business is simple.

B
Where manual skill is required.

C
Where the market for the product is small and local.

D
All of above

Solution

The sole proprietorship form is most suitable on;y in the following cases:
1. The nature of business is simple
2. Manual skill is required.
3. The market for the product is small and local.
4. The capital requirement is small and the risk involved is not heavy.
Thus the correct answer is D.

User

Question Analysis

Correct -
Wrong -
Skipped -

My Perfomance

Score
-
out of -
Rank
-
out of -

Re-Attempt Weekly Quiz Competition

Forms of Business Organisations Test - 29

Result

Forms of Business Organisations Test - 29

Score

-

Rank

-

SHARING IS CARING

Question 1

an agreement

statute

operation of law

both an agreement and statute

Solution

Question 2

Company

Sole proprietorship

Trust

Society

Solution

Question 3

must be coupled with an agreement to share losses

is same as agreement to share losses

implies an agreement to share losses

does not necessarily mean an agreement to share losses.

Solution

Question 4

X and Y

X and ?-

Y and Z

X, Y and Z

Solution

Question 5

active

sleeping or dormant

nominal

sub-partner

Solution

Question 6

mutual agency

sharing of profits

sharing of osses

all of the above

Solution

Question 7

single person

sole proprietor

company

partner

Solution

Question 8

has nothing to do with the directors, of the company

is never in touch with any government department

occupies an important place in a corporate setup

does not have to correspond with the investors

Solution

Question 9

Statement A is true but Statement B is false

Statement A is false but Statement B is true

Both Statement A and B are true

Both Statement A and B are false

Solution

Question 10

Where the nature of business is simple.

Where manual skill is required.

Where the market for the product is small and local.

All of above

Solution

User

Question Analysis

My Perfomance

Score

-

Rank

-

Results Announcement on: coming Monday

Stay Tuned: We’ll update you on your result via email or SMS.