Steps involved in Establishing Business Test 18

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Steps involved in Establishing Business Test 18

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SHARING IS CARING

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Weekly Quiz Competition

Question 1
1 / -0

Agreement to share profits in a partnership firm ________.

A
must be coupled with an agreement to share losses

B
is same as agreement to share losses

C
implies an agreement to share losses

D
does not necessarily mean an agreement to share losses.

Solution

As per Section 4 of the Indian Partnership Act, 1932"Partnership" is the relation between persona who have agreed to share the profits of business carried on by all. Each person contributed money, property, labour or skill and expects to share in the profits and losses of the business.
Question 2
1 / -0

In which of the following cases, a partnership firm may be dissolved?
X. On the death of a partner.
Y. On the insolvency of a partner
Z. On the retirement of a partner
Correct option is _______________.

A
X and Y

B
X and ?-

C
Y and Z

D
X, Y and Z

Solution

Partnership may get dissolved in the following cases :
1. On the death of partner : The death of the partner may affect the working of the organization. As these partners are dependent on each other. So the partnership may get dissolved and new partnership is formed.
2. On the insolvency of a partner : When a partner becomes banckrupt or insolvent which means his liabilities are more than the assets he owns , partnership firm gets dissolved and new partnership is formed.
3. On retirement of the partner : On the retirement of the partners account is settled and new partnership deed is formed.
Question 3
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Person doing business solely is known as ________.

A
single person

B
sole proprietor

C
company

D
partner

Solution

Sole proprietorship refers to a form of business organisation which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks
Question 4
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Statement A : Easy to form is advantage of sole proprietorship form of business.
Statement B: Easy to wind up is advantage of sole proprietorship form of business.

A
Statement A is true but Statement B is false

B
Statement A is false but Statement B is true

C
Both Statement A and B are true

D
Both Statement A and B are false

Solution

Both the statements are correct because easy to form is the advantage of sole proprietorship form of business and easy to wind up is also an advantage of sole proprietorship form of business, both are the key advantages of the sole proprietorship, any individual can easily set up the sole proprietorship because of the fewer rules and regulations applicability on the same.
Thus the correct answer is C.
Question 5
1 / -0

Sole proprietorship form is most suitable ___________.

A
Where the nature of business is simple.

B
Where manual skill is required.

C
Where the market for the product is small and local.

D
All of above

Solution

The sole proprietorship form is most suitable on;y in the following cases:
1. The nature of business is simple
2. Manual skill is required.
3. The market for the product is small and local.
4. The capital requirement is small and the risk involved is not heavy.
Thus the correct answer is D.
Question 6
1 / -0

A business started by only one person is called________.

A
Company

B
Sole proprietorship

C
Trust

D
Society

Solution

A business started by only one person is called a sole proprietorship, it is the simple type of business to establish due to a lack of government regulation. These types of businesses are very popular among sole owners of businesses, individual self-contractors, and consultants. Many sole proprietors do business under the registration of their own names is not necessary for these types of business.
Thus the correct answer is B.
Question 7
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The business started by a group of persons can be ________.

A
Company

B
Hindu Undivided Family

C
Partnership

D
Any of the above

Solution

Company, Hindu Undivided Family and Partnership are the business organsations which is started or operated by more than one person or owner.
For Example- Company have shareholders as its owner, HUF has its family members as its owner and Partnership has the partners as its owner.
Question 8
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The Court may not dissolve the firm in case of __________.

A
permanent in capability of a partner

B
insanity of a partner

C
misconduct of a partner

D
retirement of a partenr

Solution

The Court may not dissolve the firm in case of retirement of a partner because partner may retire with the consent of all the other partners in accordance with an express agreement by the partners, it doesn't lead to the dissolving of the firm Only in the following cases, a firm may dissolve:

1. Death or bankruptcy of Partners

2. Mutual Consent of the Partners etc

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

Which of following form of business is the most simple and common in our country?

A
Statuary corporations

B
Sole proprietorship

C
Company

D
All of above

Solution

Sole Proprietorship is a form of business which is the most simple and common in our country. It is owned and controlled by one person. The main features of the proprietorship form of business are:
1. Single owner
2. Unlimited liability
3. No sharing of profit and loss
4. No Separate Business Entity
5. Less formalities
Thus the correct answer is B.
Question 10
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Which of the following statement is/are TRUE and which is/are FALSE?
I. Sole proprietorship business includes only shopkeepers.
II. In sole proprietorship business the proprietor has full control over each and every activity of the business.
III. The sole proprietor is always in a position to maintain good personal contact with the customers and employees.

Select the correct answer from the options given below:

A
I - False

II - False

III - True

B
I - False

II - True

III - True

C
I - True

II - False

III - True

D
I - False

II - True

III - False

Solution

1. False because this form of business not only includes in retail sector but also includes in areas of personalised services such as beauty parlours, hair saloons and small scale activities.
2. True as Sole proprietorship refers to a form of business organisation which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks.
3. False because sometimes it is diffucult for a single person to control each and activity of the business so sometimes it requires to have other persons to manage other activities.

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Re-Attempt Weekly Quiz Competition

Steps involved in Establishing Business Test 18

Result

Steps involved in Establishing Business Test 18

Score

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Rank

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SHARING IS CARING

Question 1

must be coupled with an agreement to share losses

is same as agreement to share losses

implies an agreement to share losses

does not necessarily mean an agreement to share losses.

Solution

Question 2

X and Y

X and ?-

Y and Z

X, Y and Z

Solution

Question 3

single person

sole proprietor

company

partner

Solution

Question 4

Statement A is true but Statement B is false

Statement A is false but Statement B is true

Both Statement A and B are true

Both Statement A and B are false

Solution

Question 5

Where the nature of business is simple.

Where manual skill is required.

Where the market for the product is small and local.

All of above

Solution

Question 6

Company

Sole proprietorship

Trust

Society

Solution

Question 7

Company

Hindu Undivided Family

Partnership

Any of the above

Solution

Question 8

permanent in capability of a partner

insanity of a partner

misconduct of a partner

retirement of a partenr

Solution

Question 9

Statuary corporations

Sole proprietorship

Company

All of above

Solution

Question 10

I - FalseII - FalseIII - True

I - FalseII - TrueIII - True

I - TrueII - FalseIII - True

I - FalseII - TrueIII - False

Solution

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I - False

II - False

III - True

I - False

II - True

III - True

I - True

II - False

III - True

I - False

II - True

III - False