Forms of Business Organisations Test

Result

Forms of Business Organisations Test - 54

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Weekly Quiz Competition

Question 1
1 / -0

In a Hindu Undivided Family business only the _____ get a share in the business by virtue of their being part of the family.

A
Female members

B
Male members

C
Both (a) & (b)

D
Either (a) or (b)

Solution

In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.
Question 2
1 / -0

In Hindu Undivided Family (HUF) from of business all the members of a Hindu undivided family own the business _______________.

A
Individually

B
Separately

C
Jointly

D
With society

Solution

In Hindu Undivided Family(HUF) form of business all the members of a Hindu undivided family own the business jointly. In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.
Question 3
1 / -0

Which of the following is/are disadvantage of a 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

Company can be defined as an association of persons for the purpose of carrying on business. Any entity engaging in business or corporation registered under Companies Act, 2013. Disadvantages of a company form of organization are:
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.
Question 4
1 / -0

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

A
A HUF business is not affected by the insolvency or death of any member including that of karta.

B
An inefficient karta can also do harm to the business.

C
The continuity of business is always under threat It may be due to a small rift within the family and if aco- parcener asks for a partition the business is closed.

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

Solution

A HUF business is not affected by the insolvency or death of any member including that of karta- this can be treated s advantage of HUF form of business. In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.
Question 5
1 / -0

Any person can become member of HUF.

A
False

B
True

C
Partly true

D
None of above

Solution

Any person can become member of HUF-this is a false statement. In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.
Question 6
1 / -0

In a HUF business, in the event of death of any of the co-parcener, his wife can claim share of profit.

A
False

B
True

C
Partly true

D
None of above

Solution

In a HUF business, in the event of death of any of the coparcener, his wife can claim share of profit-this is a true statement. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.
Question 7
1 / -0

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

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

In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India. 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 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.
Question 8
1 / -0

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

A
An inefficient karta can also do harm to the business.

B
In a HUF business the male members of three successive generations are involved which may leads to conflict between generations.

C
The continuity of business is always under threat. It may be due to a small rift within the family and if a coparcener asks for a partition the business is closed.

D
All of above

Solution

In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India. Following can be treated as disadvantage of HUF form of business:
a) An inefficient karta can also do harm to the business.b) In a HUF business the male members of three successive generations are involved which may leads to conflict between generations.
c) The continuity of business is always under threat. It may be due to a small rift within the family and if a coparcener asks for a partition the business is closed.
Question 9
1 / -0

Which of the following can be treated as disadvantages 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.gains.

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

In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India. 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.gains.
c) Since the karta has absolute freedom to manage the business, there is scope for him to misuse it for his personal gains.
Question 10
1 / -0

In a HUF business all co-parceners have equal share in the profits of the business.

A
False

B
True

C
Partly true

D
None of above

Solution

In a HUF business all co-parceners have equal share in the profits of the business- this is a true statement. In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.

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Re-Attempt Weekly Quiz Competition

Forms of Business Organisations Test - 54

Result

Forms of Business Organisations Test - 54

Score

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Rank

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SHARING IS CARING

Question 1

Female members

Male members

Both (a) & (b)

Either (a) or (b)

Solution

Question 2

Individually

Separately

Jointly

With society

Solution

Question 3

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 4

A HUF business is not affected by the insolvency or death of any member including that of karta.

An inefficient karta can also do harm to the business.

The continuity of business is always under threat It may be due to a small rift within the family and if aco- parcener asks for a partition the business is closed.

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

Solution

Question 5

False

True

Partly true

None of above

Solution

Question 6

False

True

Partly true

None of above

Solution

Question 7

Every co-parcener is assured a share in the profits irrespective of his contribution to 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 8

An inefficient karta can also do harm to the business.

In a HUF business the male members of three successive generations are involved which may leads to conflict between generations.

The continuity of business is always under threat. It may be due to a small rift within the family and if a coparcener asks for a partition the business is closed.

All of above

Solution

Question 9

HUF business has generally limited financial and managerial resource.

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

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 10

False

True

Partly true

None of above

Solution

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