Forms of Business Organisations Test

Result

Forms of Business Organisations Test - 32

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Weekly Quiz Competition

Question 1
1 / -0

Characteristics of a company_________.

A
Artificial legal person

B
Incorporated body

C
Capital divisible into shares

D
All of above

Solution

A company as an entity has many distinct features which together make it a unique organization. The essential characteristics of a company are the following:
1. Separate legal entity.
2. Limited liability.
3. Perpetual succession.
4. Transferability of shares.
5. Incorporated body.
Question 2
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The company can ___________.

A
Enter into contracts

B
Borrow money

C
Open banking account in its name

D
All of above

Solution

Company is a distinct as well as legal entity and would be liable for his own.
Therefore, a company can borrow money, enter into contracts, open bank account in its name, purchase its own shares.
Question 3
1 / -0

If the partnership agreement is in __________ it is known as a "Partnership Deed".

A
Verbal

B
Written

C
Implied

D
Verbal, written or implied

Solution

If the partnership agreement is in written it is known as a "Partnership Deed" because the relationship of partnership arises out of an agreement, a Partnership Agreement 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 B.
Question 4
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Feature(s) of a public corporation is/are ___________________________.

A
It is genearlly not exempt from the rigid rules applicable to the expenditure of public funds.

B
A public Corporation is managed by board of directors who are appointed by the public financial institutions.

C
The primary motive of the corporation is public service rather than private profits.

D
All of above.

Solution

A public corporation is a form of public enterprise which is created by a special Act of the Parliament or the State Legislature for the public service. They are also known as a statutory corporation. The main motive the Public Corporations is public service or social welfare instead of private profits.
Thus the correct answer is C.
Question 5
1 / -0

Village Service Co-operative Society and Urban Co-operative Banks are examples of ________________.

A
Producers' co-operative societies

B
Co-operative marketing societies

C
Co-operative credit societies

D
Consumer's co-operative societies

Solution

Village Service Co-operative Society and Urban Co-operative Banks are examples of Credit cooperative societies, these societies are formed to provide credit facilities to their members who need financial assistance in the form of loans and they provide loans out of the amount collected from the members as capital and deposits. Their main aim is to provide loans to the deprived members at a low rate of interest.
Thus the correct answer is C.
Question 6
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Which of the following is / are disadvantage of company form of organization?

A
The window dressing of the prospectus often misleads the investors who are later on exploited by the promoters

B
Lack of secrecy

C
Stock exchange speculation

D
All of above

Solution

A company is a distinct legal entity separate from its shareholders or officers. The following are the disadvantages of a company form of organization:
1. The window dressing of the prospectus often misleads the investors who are later on exploited by the promoters.
2. Lack of secrecy.
3. Stock exchange speculation.
4. Your financial affairs are public.
Thus the correct answer is D.
Question 7
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Which of the following organization is formed to provide residential houses to members?

A
Producer's co-operative societies

B
Co-operative marketing societies

C
Housing co-operative societies

D
Consumer's co-operative societies

Solution

Housing Cooperative Societies are formed to provide residential houses to members, these societies also help their members to construct houses and providing plots to the members at a reasonable cost. Their members can pay for the same in installments easily.
Thus the correct answer is C.
Question 8
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According to Indian Cooperative Societies Act, 1912, each society must transfer at least ___ of its profits to general reserve.

A
One third

B
One fourth

C
One half

D
One tenth

Solution

According to the Indian Cooperative Societies Act, 1912, each society must transfer at least one-fourth of its profits to general reserve because as per the act any registered society must transfer one-fourth of the net profits in any year to a reserve fund and further to contribute an amount not exceeding ten percent. of the remaining net profits to any charitable purpose.
Thus the correct answer is B.
Question 9
1 / -0

The co-operative society has perpetual succession because it is not affected due to ________________.

A
Death of any member

B
Insolvency of any member

C
Lunacy of any member

D
Any of above

Solution

The co-operative society has perpetual succession because it is not affected due to any of the given options because death, bankruptcy, or insanity of the members do not affect the continuity of a cooperative society. It is a continuous process that keeps ongoing.
Thus the correct option is D.
Question 10
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When firm successfully engages in mergers and acquisitions it is called _________.

A
Expansion

B
Growth and expansion

C
Business planning

D
Modernization

Solution

The mergers and acquisitions (M&A) refer to the process of one company combining with one another to making a big entity. In an acquisition, one company purchases the other outright. A merger is the combination of two firms, which subsequently form a new legal entity with the purpose of expansion of the business.
Thus the correct answer is A.

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Re-Attempt Weekly Quiz Competition

Forms of Business Organisations Test - 32

Result

Forms of Business Organisations Test - 32

Score

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SHARING IS CARING

Question 1

Artificial legal person

Incorporated body

Capital divisible into shares

All of above

Solution

Question 2

Enter into contracts

Borrow money

Open banking account in its name

All of above

Solution

Question 3

Verbal

Written

Implied

Verbal, written or implied

Solution

Question 4

It is genearlly not exempt from the rigid rules applicable to the expenditure of public funds.

A public Corporation is managed by board of directors who are appointed by the public financial institutions.

The primary motive of the corporation is public service rather than private profits.

All of above.

Solution

Question 5

Producers' co-operative societies

Co-operative marketing societies

Co-operative credit societies

Consumer's co-operative societies

Solution

Question 6

The window dressing of the prospectus often misleads the investors who are later on exploited by the promoters

Lack of secrecy

Stock exchange speculation

All of above

Solution

Question 7

Producer's co-operative societies

Co-operative marketing societies

Housing co-operative societies

Consumer's co-operative societies

Solution

Question 8

One third

One fourth

One half

One tenth

Solution

Question 9

Death of any member

Insolvency of any member

Lunacy of any member

Any of above

Solution

Question 10

Expansion

Growth and expansion

Business planning

Modernization

Solution

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