Chapter Exam

Chapter 2: Forms of Business Organisation — Online MCQ Test

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

Answer: B. Sole proprietorship — A sole proprietorship is owned and managed by one individual. The proprietor alone enjoys profits and bears all risks.

Q: In a Hindu Undivided Family business, the members who acquire interest in the business by birth are called:

Answer: C. Coparceners — Coparceners are those family members who get a right in the family property and business by birth. This is a key feature of HUF business.

Q: Ravi wants to start a business alone with very little capital and full control over decisions. Which form is most suitable?

Answer: A. Sole proprietorship — Sole proprietorship is suitable for small businesses with limited capital and where one person wants complete control. It is easy to form and operate.

Q: Which of the following correctly matches the business form with its disadvantage?

Answer: B. Partnership - unlimited liability — One major disadvantage of partnership is that partners usually have unlimited liability. The other options are mismatched with the usual features or limitations.

BUSINESS STUDIES · CLASS 11 FIRST PUC · Karnataka State Board

Practice Chapter 2: Forms of Business Organisation with a free chapter-wise online MCQ test for Karnataka State Board CLASS 11 FIRST PUC BUSINESS STUDIES. This chapter covers: This chapter details various forms of business ownership sole proprietorship Hindu Undivided Family business partnership cooperative societies and joint-stock companies advantages.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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

Frequently asked questions from Karnataka State Board CLASS 11 FIRST PUC BUSINESS STUDIES — Chapter 2: 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, controlled and managed by a single person?

A. Partnership
B. Sole proprietorship ✓
C. Joint-stock company
D. Co-operative society

Answer: B. Sole proprietorship
A sole proprietorship is owned and managed by one individual. The proprietor alone enjoys profits and bears all risks.

In a Hindu Undivided Family business, the members who acquire interest in the business by birth are called:

A. Partners
B. Shareholders
C. Coparceners ✓
D. Members

Answer: C. Coparceners
Coparceners are those family members who get a right in the family property and business by birth. This is a key feature of HUF business.

Ravi wants to start a business alone with very little capital and full control over decisions. Which form is most suitable?

A. Sole proprietorship ✓
B. Partnership
C. Co-operative society
D. Public company

Answer: A. Sole proprietorship
Sole proprietorship is suitable for small businesses with limited capital and where one person wants complete control. It is easy to form and operate.

Which of the following correctly matches the business form with its disadvantage?

A. Sole proprietorship - lack of secrecy
B. Partnership - unlimited liability ✓
C. Co-operative society - lack of democracy
D. Joint-stock company - lack of public confidence

Answer: B. Partnership - unlimited liability
One major disadvantage of partnership is that partners usually have unlimited liability. The other options are mismatched with the usual features or limitations.

Which statement about a joint-stock company is most accurate?

A. It is formed only by family members and has no separate existence
B. It is created by law and has perpetual succession and limited liability ✓
C. It cannot raise funds from the public
D. Its membership is restricted to a maximum of 10 persons

Answer: B. It is created by law and has perpetual succession and limited liability
A company is an artificial legal person created by law. It enjoys perpetual succession and limited liability, which are major advantages over many other forms.