Forms of Business Organisations Test

Result

Forms of Business Organisations Test - 36

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Weekly Quiz Competition

Question 1
1 / -0

One of the disadvantages of a company form of business is ________.

A
its full legal cover

B
recognized legal entity

C
stock exchange speculation

D
none of the above
Solution
Option C is the correct answer.
Disadvantages of Joint Stock Company:
Difficulty in Formation: ADVERTISEMENTS
Reckless Speculation Encouraged
Fraudulent Management
Delay in Decision-Making
Monopolistic Powers
Excessive Regulation by Law
Conflict of Interests
Lack of Secrecy
Question 2
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.
Correct option is __________.

A
I and II

B
II and III

C
I and III

D
I, II and III
Question 3
1 / -0

What is the maximum strength of HUF?

A
$$20$$

B
$$10$$

C
$$50$$

D
No limit

Solution

There is no limit on maximum strength of HUF.
Question 4
1 / -0

Which of the following is an advantage of HUF?

A
Favourable Credit Standing

B
Greater Management Ability

C
Profit Incentive

D
None of the above

Solution

A Hindu family can come together and form a HUF. The following are the advantage of HUF:
1.Members of Hindu Undivided Family can easily avail loans.
2. Different taxable units of HUF can be created.
Options A, B, and C are not advantages of the HUF.
Thus the correct option is D.
Question 5
1 / -0

The following is the advantage of a company ___________________.

A
Benefits of large scale production

B
Bold management

C
Full legal cover

D
All of the above

Solution

The following are the advantage of a company:
1. This form of business is appropriate for the large scale production.
2. A company is handled by professional management.
3. A company has a separate legal entity.
Thus the correct answer is D.
Question 6
1 / -0

The money contributed to the company by its members is its __________ and is known as the member's __________.

A
assets, share

B
profit, investment

C
capital, share

D
none of the above

Solution

Option C is the correct answer.
Question 7
1 / -0

The official signature of the company is known as ________.

A
company logo

B
company seal

C
common seal

D
common signature

Solution

The official signature of the company is known as the company seal. It is the corporate seal used by a company for the documents that need to be executed as deeds. The company is an artificial person who acts through its Board of Directors. The Board of Directors enters into an agreement with others by indicating the company's approval through a common seal.
Thus the correct answer is C.
Question 8
1 / -0

Compared to licensing, franchising is a more advantageous entry mode because ________________________.

A
It generates economies of scale in marketing to international customers

B
It is low-risk and low-cost

C
It offers greater control

D
All the above

Solution

Option D is the correct answer.
Question 9
1 / -0

Which of the following is not the requirement in Partnership deed?

A
Capital contribution by each partner

B
Profit sharing

C
Total assets of the partner

D
Method of dissolution
Question 10
1 / -0

Following are the elements which constitute a partnership _____________.

A
there must be a contact regarding a partnership

B
there must be an association of two or more persons

C
there should be $$7$$ persons

D
both a & b

Solution

The following are the elements which constitute a partnership:
1. There must be a contract regarding a partnership.
2. There must be an association of two or more persons.
3. Profit-making motive etc.
Thus the correct option is D.

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Re-Attempt Weekly Quiz Competition

Forms of Business Organisations Test - 36

Result

Forms of Business Organisations Test - 36

Score

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Rank

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SHARING IS CARING

Question 1

its full legal cover

recognized legal entity

stock exchange speculation

none of the above

Solution

Question 2

I and II

II and III

I and III

I, II and III

Question 3

$$20$$

$$10$$

$$50$$

No limit

Solution

Question 4

Favourable Credit Standing

Greater Management Ability

Profit Incentive

None of the above

Solution

Question 5

Benefits of large scale production

Bold management

Full legal cover

All of the above

Solution

Question 6

assets, share

profit, investment

capital, share

none of the above

Solution

Question 7

company logo

company seal

common seal

common signature

Solution

Question 8

It generates economies of scale in marketing to international customers

It is low-risk and low-cost

It offers greater control

All the above

Solution

Question 9

Capital contribution by each partner

Profit sharing

Total assets of the partner

Method of dissolution

Question 10

there must be a contact regarding a partnership

there must be an association of two or more persons

there should be $$7$$ persons

both a & b

Solution

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