Forms of Business Organisations Test

Result

Forms of Business Organisations Test - 60

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Weekly Quiz Competition

Question 1
1 / -0

Tick mark the correct answer.
Physical verification of fixed assets is the primary responsibility of the___________.

A
Auditor

B
Management

C
Government

D
Shareholders

Solution

Option A is the correct answer.
Physical verification of fixed assets is the primary responsibility of the auditor.
Question 2
1 / -0

Partnership is a form of business organisation in which business debts can be recovered from

A
The managing partners

B
All the managers and partners

C
The firm and the managers

D
The firm and all the partners

Solution

Option D is the correct answer.
Question 3
1 / -0

Tick mark the correct answer.
A firm has these characteristics: it is involved in the manufacture of custom built machinery, its products have shorter life span, the products are processed through different specialists, and the products have a rigid time schedule to be met. In such a circumstance, which one of the following would be the form of organisation best suited to achieve the objectives?

A
Functional organisation

B
Line and Staff organisation

C
Project (Matrix) organisation

D
Line organisation

Solution

Option C is the correct answer.

Question 4

1 / -0

Match List I with List II and select the correct answer using the codes given below the lists.

	List I		List II
A.	Cooperative society	1.	Collective business
B.	Joint Hindu Family	2.	Purchase/Transfer of share
C.	Joint stock company	3.	By virtue of birth
D.	Partnership firm	4.	Common mutual interest
		5.	Mutual contract

A - 1, B - 3, C - 2, D - 5

A - 5, B - 4, C - 1, D - 3

A - 4, B - 3, C - 2, D - 5

A - 4, B - 1, C - 2, D - 3

Solution

List 1

List 2

Cooperative society

Common mutual interest

Joint Hindu Family

By virtue of birth

Joint stock company

Purchase/Transfer of share

Partnership firm

Mutual contract

Question 5
1 / -0

While calculating the net present value under discounted cash flow method of return on investment analysis, the calculations involved are 1. Cash outflow
2. Discounted net cash flow
3. Cash inflow
4. Net present value
The correct sequence of these calculations is

A
4, 1, 3, 2

B
1, 3, 2, 4

C
1, 2, 3, 4

D
3. 1, 4, 2

Solution

Discounted cash flow can be defined as a valuation method used to estimate the value of an investment based on its future cash flow. While calculating the net present value under discounted cash flow method of return on investment analysis, the calculations involved are :
a) Cash outflow
b) Discounted net cash flow
c) Cash inflow
d) Net present value
Question 6
1 / -0

Conversion of shares of a smaller denomination into shares of a bigger denomination is called

A
Consolidation

B
Sub-division

C
Restructuring

D
All of these

Solution

Option A is the correct answer.
Conversion of shares of a smaller denomination into shares of a bigger denomination is called consolidation.
Question 7
1 / -0

Tick mark the correct answer.
A nominal partner.

A
Receives a share in profits

B
Takes part in business activity

C
Does not receive a share in profits

D
None of the above

Solution

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

Gains on the sale of fixed assets that are not for sale in the ordinary course of business are known as _________________.

A
Capital gains

B
Revenue gains

C
Accounting profits

D
Benefit cost expenses

Solution

Gains on the sale of fixed assets that are not for sale in the ordinary course of business are known as capital gains. Capital gains can be referred as the amount earned from selling of any fixed assets or property or investment. Capital gains are incurred as the selling price exceeds the purchase price.
Question 9
1 / -0

The maximum number of partners for a firm carrying on banking business is _________.

A
10

B
20

C
7

D
0

Solution

Option A is correct One.
The new Companies Act 2013 has prescribed the maximum number of members in case of a partnership firm should not be more than 100 in case of partnerships. As per the previous Companies Act 1956, the maximum limit in case of partnerships was 10 and 20 for banking business and other businesses respectively.
Question 10
1 / -0

Vertical combination helps to _____________________.

A
Achieve economy by combining allied activities

B
Survive during the times of depression

C
Fight a common enemy

D
Add new product lines

Solution

Vertical combination helps to achieve economy by combining allied activities. It helps to facilitate continuous utilization of resources. Vertical combination or integration can be defined as the combination of different firms engaged in different processes for manufacturing a given product.

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Re-Attempt Weekly Quiz Competition

Forms of Business Organisations Test - 60

Result

Forms of Business Organisations Test - 60

Score

-

Rank

-

SHARING IS CARING

Question 1

Auditor

Management

Government

Shareholders

Solution

Question 2

The managing partners

All the managers and partners

The firm and the managers

The firm and all the partners

Solution

Question 3

Functional organisation

Line and Staff organisation

Project (Matrix) organisation

Line organisation

Solution

Question 4

A - 1, B - 3, C - 2, D - 5

A - 5, B - 4, C - 1, D - 3

A - 4, B - 3, C - 2, D - 5

A - 4, B - 1, C - 2, D - 3

Solution

Question 5

4, 1, 3, 2

1, 3, 2, 4

1, 2, 3, 4

3. 1, 4, 2

Solution

Question 6

Consolidation

Sub-division

Restructuring

All of these

Solution

Question 7

Receives a share in profits

Takes part in business activity

Does not receive a share in profits

None of the above

Solution

Question 8

Capital gains

Revenue gains

Accounting profits

Benefit cost expenses

Solution

Question 9

10

20

7

0

Solution

Question 10

Achieve economy by combining allied activities

Survive during the times of depression

Fight a common enemy

Add new product lines

Solution

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