Chapter 2 COMMERCE : Forms of Business Organisation — Online MCQ Test
COMMERCE · CLASS 11 INTER I YEAR · Andhra State Board
Practice Chapter 2 COMMERCE : Forms of Business Organisation with a free chapter-wise online MCQ test.
This chapter covers: This chapter details sole proprietorship features advantages disadvantages Joint Hindu Family business co-operative societies and partnership firms..
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Chapter 2 COMMERCE : Forms of Business Organisation — Important Questions & Answers
Which form of business organisation is owned, managed, and controlled by a single individual?
- A. Partnership
- B. Sole Proprietorship
- C. Joint Hindu Family
- D. Co-operative Society
Answer: B. Sole Proprietorship
A sole proprietorship is a business owned, managed, and controlled by one individual who receives all profits and bears all risks.
A sole proprietorship is a business owned, managed, and controlled by one individual who receives all profits and bears all risks.
In a Joint Hindu Family business, the head of the family is called the:
- A. Manager
- B. Partner
- C. Karta
- D. Director
Answer: C. Karta
The Karta is the eldest member of the family who manages the business and has unlimited liability.
The Karta is the eldest member of the family who manages the business and has unlimited liability.
Unlimited liability is a feature of:
- A. Public Company
- B. Private Company
- C. Sole Proprietorship
- D. Co-operative Society
Answer: C. Sole Proprietorship
In a sole proprietorship, the owner is personally liable for all business debts, meaning their personal assets can be used to pay them.
In a sole proprietorship, the owner is personally liable for all business debts, meaning their personal assets can be used to pay them.
Why is a partnership firm considered a flexible form of business?
- A. It is regulated by strict government laws
- B. Partners can change the terms of the agreement easily
- C. It is a separate legal entity
- D. It requires public disclosure of accounts
Answer: B. Partners can change the terms of the agreement easily
Partners can alter the partnership deed by mutual consent, allowing for high operational flexibility.
Partners can alter the partnership deed by mutual consent, allowing for high operational flexibility.
If a partner retires, why is the registration of a partnership firm considered significant?
- A. Registration is mandatory for all partnerships
- B. It provides legal protection and makes it easier to enforce claims against third parties
- C. Unregistered firms cannot have partners
- D. Registration prevents the death of partners
Answer: B. It provides legal protection and makes it easier to enforce claims against third parties
Registration is optional but recommended as an unregistered firm cannot file suits against third parties for enforcement of rights.
Registration is optional but recommended as an unregistered firm cannot file suits against third parties for enforcement of rights.