Forms of Business Organisations Test

Result

Forms of Business Organisations Test - 31

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Weekly Quiz Competition

Question 1
1 / -0

Member in HUF other than KARTA are called as _____________.

A
Co-parceners

B
Co-partner

C
Co-manager

D
Co-karta

Solution

Member in HUF other than KARTA is called as Coparcener, as per the Hindu Succession Act, 1956, any individual born in a Hindu Undivided Family (HUF) becomes a coparcener by birth. He is a person who acquires interest in the joint family property by birth. Both sons and daughters are the coparceners in the family and they have equal rights and liabilities over the property.
Thus the correct answer is A.
Question 2
1 / -0

A minimum of ____________ are required to start a partnership business.

A
Five persons

B
Four persons

C
Three persons

D
Two persons

Solution

A minimum of two persons is required to start a partnership business. As per the Partnership Act, there must be an association of two or more persons, this statement is true, it is a legal form of business operation between two or more individuals who share management and profits. All members share both profits and liabilities equally and the individuals are personally responsible for the debts of the partnership.
Thus the correct answer is D.
Question 3
1 / -0

The Hindu Undivided Family business is governed by ____________.

A
Contract law

B
Hindu law

C
Muslim law

D
Company law

Solution

HUF refers to a form of organisation wherein the business is owned and carried on by the members of the Hindu Undivided Family (HUF). It is governed by the Hindu Law. The basis of membership in the business is birth in a particular family and three successive generations can be members in the business.
Question 4
1 / -0

Statement X : Karta is the custodian of the income and assets of the HUF
Statement Y: An adopted son who is the eldest in the family can be qualified to be a Karta of HUF.

A
X is true but Y is false

B
Y is true but X is false

C
Both X and Y are false

D
Both X and Y are true

Solution

The head of hindu joint family is known as karta or the manager occupies a unique position unlike any other member of the family . The senior most joint member of the joint family is usually the head or karta of the Hindu Undivided Family.
The statements fore mentioned related to karta are true:
1. Karta is the custodian of the income and assets of the HUF.
2. An adopted son who is the eldest in the family can be qualified to be a karta of HUF.
Question 5
1 / -0

In HUF form of business all the members of a hindu undivided family own the business ________.

A
Individually

B
Separately

C
Jointly

D
With society

Solution

The HUF form of business all the members of a hindu undivided family own the business jointly. A Hindu family can come together and form a HUF as one person cannot form HUF, it can only be formed by a family, it consists of a common ancestor and all of his lineal descendants, including their wives and unmarried daughters.
Thus the correct answer is C.
Question 6
1 / -0

Which of the following can be treated as disadvantage of HUF form of business?

A
HUF business has generally limited financial and managerial resource.

B
There is always a lack of motivation among the members to work hard.

C
Since the karta has absolute freedom to manage the business, there is scope for him to misuse it for his personal gains.

D
All of above

Solution

The Hindu Undivided Family (HUF) is defined under the Hindu Law as a family that consists of all persons lineally descended from a common ancestor including wives and unmarried daughters . This means that membership of HUF does not come from contract but from the status of the persons in the family.
The disadvantages of HUF are mentioned below:
1. HUF business has generally limited financial and managerial resources.
2. There is always a lack of motivation among the manage to work hard.
3. Since the karta has absolute freedom to manage the business , there is scope for him to misuse it for his personal gains.
Question 7
1 / -0

Which of the following can be treated as advantage of HUF form of business?
I. The liability of the co-parceners is limited, except for that of karta.
II. A HUF business is not affected by the insolvency or death of karta.
Select the correct answer from the options given below.

A
I only

B
II only

C
Both I and II

D
Neither I nor II

Solution

The advantages of HUF form of business are:
1. The liability of the co-parceners is limited expect for that of karta which makes the karta to manage the business in the most efficient manner.
2. A HUF business is not affected by the insolvency or death of any member including that of karta .
Question 8
1 / -0

Which of the following can be treated as advantage of HUF form of business?

A
Every co-parcener is assured a share in the profits irrespective of his contribution to the successful running of the business.

B
The karta enjoys full freedom in conducting the family business.

C
A HUF business provides opportunity for the young members of the family to get the benefit of knowledge and experience of the elder members and also helps in inculcating virtues like discipline, self-sacrifice, tolerance etc.

D
All of above

Solution

The advantages of HUF form of business are briefly mentioned below:
1. Every co-parcener is assured a share of his profits irrespective of his contribution to the successful running of the business.
2.The karta enjoys full freedom in conducting the family business.
3. A HUF business provides opportunities for the young members of the family to get the benefit of knowledge and experience of the eldest member and also helps in inculcating virtues like discipline , self sacrifice , tolerance etc.
Question 9
1 / -0

How partners are liable for the debts and obligations of the firm?
(i) Jointly
(ii) Severally
Select the correct answer from the options given below:

A
i only

B
ii only

C
Both i and ii

D
Neither i nor ii

Solution

Partners are jointly and severally liable for the debts and obligations of the firm. Both the options are correct because in unlimited partnership, every partner is liable, jointly with all the other partners and also severally, for all acts of the firm done by them. The Partners will be held personally responsible for another partner's carelessness.
Thus the correct answer is C.
Question 10
1 / -0

Which of the following is/are disadvantage of partnership firm?

A
Unlimited Liability of partners.

B
The duration of the partnership is always uncertain.

C
The partners should be like minded, have a common objective, be large hearted, have a cool temperament should not unnecessarily cause friction and confusion among the partners.

D
All of above

Solution

The following are the disadvantages of Partnership Firm:
1. The Liability of partners is an unlimited liability.
2. Uncertainty of partnership
3.The partners should be like-minded, have a common objective, be large-hearted, have a cool temperament should not unnecessarily cause friction and confusion among the partners.
So all the above are the disadvantages of the LLP.

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Re-Attempt Weekly Quiz Competition

Forms of Business Organisations Test - 31

Result

Forms of Business Organisations Test - 31

Score

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Rank

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SHARING IS CARING

Question 1

Co-parceners

Co-partner

Co-manager

Co-karta

Solution

Question 2

Five persons

Four persons

Three persons

Two persons

Solution

Question 3

Contract law

Hindu law

Muslim law

Company law

Solution

Question 4

X is true but Y is false

Y is true but X is false

Both X and Y are false

Both X and Y are true

Solution

Question 5

Individually

Separately

Jointly

With society

Solution

Question 6

HUF business has generally limited financial and managerial resource.

There is always a lack of motivation among the members to work hard.

Since the karta has absolute freedom to manage the business, there is scope for him to misuse it for his personal gains.

All of above

Solution

Question 7

I only

II only

Both I and II

Neither I nor II

Solution

Question 8

Every co-parcener is assured a share in the profits irrespective of his contribution to the successful running of the business.

The karta enjoys full freedom in conducting the family business.

A HUF business provides opportunity for the young members of the family to get the benefit of knowledge and experience of the elder members and also helps in inculcating virtues like discipline, self-sacrifice, tolerance etc.

All of above

Solution

Question 9

i only

ii only

Both i and ii

Neither i nor ii

Solution

Question 10

Unlimited Liability of partners.

The duration of the partnership is always uncertain.

The partners should be like minded, have a common objective, be large hearted, have a cool temperament should not unnecessarily cause friction and confusion among the partners.

All of above

Solution

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