Chapter Exam

Chapter 2 COMMERCE : Forms of Business Organisation — Online MCQ Test

Q: Which form of business organisation is owned, managed, and controlled by a single individual?

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.

Q: In a Joint Hindu Family business, the head of the family is called the:

Answer: C. Karta — The Karta is the eldest member of the family who manages the business and has unlimited liability.

Q: Unlimited liability is a feature of:

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.

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 for Andhra State Board CLASS 11 INTER I YEAR COMMERCE. This chapter covers: This chapter details sole proprietorship features advantages disadvantages Joint Hindu Family business co-operative societies and partnership firms.. AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 2 COMMERCE : Forms of Business Organisation — Important Questions & Answers (FAQ)

Frequently asked questions from Andhra State Board CLASS 11 INTER I YEAR COMMERCE — Chapter 2 COMMERCE : Forms of Business Organisation, with answers and explanations. These are sample questions; the exam has its own separate question set.

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.

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.

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.

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.

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.

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Chapter 1 COMMERCE : Concepts of Business and Business Activities

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Chapter 3 COMMERCE : Joint Stock Companies and Formation of a Company