Forms of Business Organisations Test

Result

Forms of Business Organisations Test - 33

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Weekly Quiz Competition

Question 1
1 / -0

The advantage of co-operative society is/are _________________________.

A
It is very expensive and difficult to form co-operative society as compared to joint stock company.

B
The co-operative societies work on the principle of open membership.

C
"One share one vote" is the rule and thus members having maximum share can dominate the management.

D
All of above

Solution

A cooperative organization is a society that works with the objectives of promoting the economic interests of its members. The advantages of co-operative societies are:
1. The co-operative societies work on the principle of open membership.
2. Equality in Votes, one man one vote.
3. The liability of members of a cooperative society is limited.
Thus the correct answer is B.
Question 2
1 / -0

Common examples for non profit corporations are __________________.

A
Educations corporations

B
Charitable corporations

C
Religious corporations

D
All of above

Solution

Common examples for non-profit corporations are:
1.Educations corporations
2. Charitable corporations
3. Religious corporations
All these types of corporations work for the benefit of the general public instead of making a profit they work for social welfare.
Thus the correct answer is D.
Question 3
1 / -0

Which of the following is/are advantage of LLP?

A
Perpetual existence

B
Internationally renowned from of business in comparison to Company

C
No requirement of minimum capital contribution

D
All of above

Solution

Limited liability partnership is a mix of both partnership and corporation. It has the feature of both these forms. The following are the advantages of the LLP:
1. No minimum capital requirement.
2. No limit on owners of business.
3. Lower Registration Cost, etc.
Thus the correct answer is D.
Question 4
1 / -0

Which of the following is not characteristic of LLP?

A
A legal entity having perpetual succession, separate from its partners.

B
The mutual rights and duties of partners of an LLP inter se and those of the LLP and its partners shall be governed by an agreement between partners

C
Each partner is an equal member in a LLP company.

D
Easy to establish than sole proprietorship.

Solution

LLP is a corporate business form that gives the benefits of limited liability of a company and the flexibility of a partnership. The following are the characteristic of LLP:
1. A legal entity having perpetual succession, separate from its partners.
2. Each partner is an equal member of a LLP company, etc.
But the on is fourth is not correct because a sole proprietorship is easy to establish in comparison to LLP.
Thus the correct answer is D.
Question 5
1 / -0

The right choice of the form of the business depends upon ______________.
I - Nature of business
II - Volume of business
III - Area of operation
Select the correct answer from the options given below:

A
I and II

B
III and II

C
I and III

D
I, II and III

Solution

The right choice of the form of the business depends upon all the options that are given below because nature of business, volume of business and location of the business all are the important factors which are to be considered while selecting a form of business.
Thus the correct option is D.
Question 6
1 / -0

In case of co-operative society, no member detects the terms and conditions of the functioning because "_________" is the thumb rule.

A
One man two vote

B
One man one vote

C
Two man one vote

D
No man no vote
Question 7
1 / -0

Managerial Personnel
Any corporate body or firm can be appointed as director of the company. This statement is

A
False

B
True

C
Partly true

D
Partly false

Solution

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

A partnership deed is a _________________.

A
involuntary association

B
voluntary association

C
beneficiary association

D
unavoidable association

Solution

A partnership deed is a voluntary association which 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 9
1 / -0

Following is not a characteristic of sole proprietorship business _______________.

A
Easy to form and wind up

B
Difficult to maintain secrets

C
Direct motivation

D
None of the above

Solution

Characteristics of Sole proprietorship business are-
1. : There is no separate law that governs sole proprietorship. Hardly any legal formalities are required to start a sole proprietary business, though in some cases one may require a license. Closure of the business can also be done easily. Thus, there is ease in formation as well as closure of business.
2. The risk of failure of business is borne all alone by the sole proprietor. However, if the business is successful, the proprietor enjoys all the benefits. He receives all the business profits which become a direct reward for his risk bearing.
3. The right to run the business and make all decisions lies absolutely with the sole proprietor. He can carry out his plans without any interference from others and there is no difficulty in maintain secrets.
Option D is the correct option.
Question 10
1 / -0

Hindu Undivided family is formed or created in accordance with the __________.

A
Indian Companies Act

B
Indian Partnership Act

C
Hindu Law

D
None of the above

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.

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Re-Attempt Weekly Quiz Competition

Forms of Business Organisations Test - 33

Result

Forms of Business Organisations Test - 33

Score

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SHARING IS CARING

Question 1

It is very expensive and difficult to form co-operative society as compared to joint stock company.

The co-operative societies work on the principle of open membership.

"One share one vote" is the rule and thus members having maximum share can dominate the management.

All of above

Solution

Question 2

Educations corporations

Charitable corporations

Religious corporations

All of above

Solution

Question 3

Perpetual existence

Internationally renowned from of business in comparison to Company

No requirement of minimum capital contribution

All of above

Solution

Question 4

A legal entity having perpetual succession, separate from its partners.

The mutual rights and duties of partners of an LLP inter se and those of the LLP and its partners shall be governed by an agreement between partners

Each partner is an equal member in a LLP company.

Easy to establish than sole proprietorship.

Solution

Question 5

I and II

III and II

I and III

I, II and III

Solution

Question 6

One man two vote

One man one vote

Two man one vote

No man no vote

Question 7

False

True

Partly true

Partly false

Solution

Question 8

involuntary association

voluntary association

beneficiary association

unavoidable association

Solution

Question 9

Easy to form and wind up

Difficult to maintain secrets

Direct motivation

None of the above

Solution

Question 10

Indian Companies Act

Indian Partnership Act

Hindu Law

None of the above

Solution

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