Forms of Business Organisations Test

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Forms of Business Organisations Test - 55

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Weekly Quiz Competition

Question 1
1 / -0

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

A
The liability of the co-parceners is limited, except for that of karta which makes the karta to manage the business in the most efficient manner.

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

C
Both (a) and [b)

D
(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. Following can be treated as advantage of HUF form of business:
a) The liability of the co-parceners is limited, except for that of karta which makes the karta to manage the business in the most efficient manner.
b) A HUF business is not affected by the insolvency or death of any member including that of karta.
Question 2
1 / -0

The liability of each member of the HUF business is _____________.

A
Limited to the extent of share of KART

B
Limited to the extent of his share in the business

C
Unlimited

D
Limited to the extent as may be determined by relatives

Solution

The liability of each member of the HUF business is limited to the extent of his share in the 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 3
1 / -0

In a HUF business, the liability of the karta is _______________.

A
Limited to the extent of share of co-parceners

B
Limited to the extent as may be determined by relatives

C
Unlimited

D
(a) or (b)

Solution

In a HUF business, the liability of the karta is unlimited. The affairs of the business are managed by the head of the family, known as karta. 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 4
1 / -0

Every partner is bound to attend ______ to his duties in the conduct of the business.

A
Systematically

B
Diligently

C
Sincerely

D
Effectively

Solution

Every partner is bound to attend diligently to his duties in the conduct of the business. Every partner is an agent of the partnership firm. Individuals have to enter into a contract to become partners. The business in the partnership firm can be carred on by all the partners or any one of them acting for all.
Question 5
1 / -0

Partnership is an association of two or more individuals (but not more than 20) who agree to share the profits of a lawful business which is managed and carried on __________________.

A
By all

B
By any of them.

C
By some of them acting for all

D
(a) or (b) or (c)

Solution

Partnership is an association of 2 or more individuals but not more than 20 who agree to share the profits of a lawful business which is managed and carried on either by all or by any, or some of them acting for all. Partnership can be defined as a type of unincorporated business organization in which multiple individuals, called general partners, manage the business and are equally liable for its debts' other individuals called limited partners may invest but not be directly involved in management and are liable only to the extent of their investments.
Question 6
1 / -0

Interest on capital will be allowed only when _________________.

A
There are heavy losses in the firm

B
There are no profits and no losses

C
There are profits

D
Always

Solution

Interest on capital will be allowed only when there are profits. Interest on capital is only given to partners when there are profits. In case of losses, partners are not given interest on capital. Interest on capital can be defined as the amount charged as interest on partner's capital.
Question 7
1 / -0

A company can hold its first AGM within ______ months from date of its incorporation.

A
12

B
15

C
9

D
None of these

Solution

A company can hold its first AGM within 9 months from date of its incorporation. Annual General Meeting can be hold by the directors of the company. First Annual General Meeting should be held by the directors of the company within the 9 months from the date of its incorporation.
Question 8
1 / -0

____ is an association of 2 or more individuals but not more than 20 who agree to share the profits of a lawful business which is managed and carried on either by all or by any, or some of them acting for all.

A
HUF

B
Partnership

C
Company

D
Trust

Solution

Partnership is an association of 2 or more individuals but not more than 20 who agree to share the profits of a lawful business which is managed and carried on either by all or by any, or some of them acting for all. Partnership can be defined as a type of unincorporated business organization in which multiple individuals, called general partners, manage the business and are equally liable for its debts' other individuals called limited partners may invest but not be directly involved in management and are liable only to the extent of their investments.
Question 9
1 / -0

True test of partnership is ______________.

A
Share of profits only

B
Share of profits & losses

C
Mutual agency

D
None of these

Solution

True test of partnership is mutual agency. Partnership is an association of 2 or more individuals but not more than 20 who agree to share the profits of a lawful business which is managed and carried on either by all or by any, or some of them acting for all. Partnership can be defined as a type of unincorporated business organization in which multiple individuals, called general partners, manage the business and are equally liable for its debts' other individuals called limited partners may invest but not be directly involved in management and are liable only to the extent of their investments.
Question 10
1 / -0

A new partner can be admitted in the firm with the consent of ___________________.

A
Unanimous consent of all the partners

B
Consent of the majority of the partners

C
Special majority of partners

D
New partner only

Solution

A new partner can be admitted in the firm with the consent of unanimous consent of all the partners. Admission of partner in the partnership firm and the share of the new partner is decided with the consent of the existing partners of the partnership entity. Every partner is an agent of the partnership firm.

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Forms of Business Organisations Test - 55

Result

Forms of Business Organisations Test - 55

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SHARING IS CARING

Question 1

The liability of the co-parceners is limited, except for that of karta which makes the karta to manage the business in the most efficient manner.

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

Both (a) and [b)

(a)or(b)

Solution

Question 2

Limited to the extent of share of KART

Limited to the extent of his share in the business

Unlimited

Limited to the extent as may be determined by relatives

Solution

Question 3

Limited to the extent of share of co-parceners

Limited to the extent as may be determined by relatives

Unlimited

(a) or (b)

Solution

Question 4

Systematically

Diligently

Sincerely

Effectively

Solution

Question 5

By all

By any of them.

By some of them acting for all

(a) or (b) or (c)

Solution

Question 6

There are heavy losses in the firm

There are no profits and no losses

There are profits

Always

Solution

Question 7

12

15

9

None of these

Solution

Question 8

HUF

Partnership

Company

Trust

Solution

Question 9

Share of profits only

Share of profits & losses

Mutual agency

None of these

Solution

Question 10

Unanimous consent of all the partners

Consent of the majority of the partners

Special majority of partners

New partner only

Solution

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