MCQ Questions for Class 11 Business Studies Chapter 2 Forms of Business Organisation with Answers

We have compiled NCERT MCQ Questions for Class 11 Business Studies Chapter 2 Forms of Business Organisation with Answers Pdf free download. MCQ Questions for Class 11 Business Studies with Answers were prepared according to the latest question paper pattern. Practicing these Forms of Business Organisation Class 11 Business Studies MCQs Questions with Answers really effective to improve your basics and learn all the key concepts.

Forms of Business Organisation Class 11 MCQs Questions with Answers

Objective Type Questions

Question 1.
The structure in which there is separation of ownership and management is called:
(a) Sole proprietorship
(b) Partnership
(c) Company
(d) All business organization.

Answer

Answer: (c) Company


Question 2.
In a co-operative society, the principle followed is :
(a) One share one vote
(b) One man one vote
(c) No vote
(d) Multiple votes.

Answer

Answer: (b) One man one vote


Question 3.
The maximum number of partners allowed in the banking business are :
(a) Twenty
(b) Ten
(c) No limit
(d) Two.

Answer

Answer: (b) Ten


Question 4.
The capital of a company is divided into number of parts each one of which are called:
(a) Dividend
(b) Profit
(c) Interest
(d) Share.

Answer

Answer: (d) Share.


Question 5.
Provision of residential accommodation to the members at reasonable rates is the objective of:
(a) Producer’s cooperative
(b) Consumer’s cooperative
(c) Housing cooperative
(d) Credit cooperative.

Answer

Answer: (c) Housing cooperative


Question 6.
The karta in Joint Hindu Family business has :
(a) Limited liability
(b) Unlimited liability
(c) No liability for debts
(d) Joint liability.

Answer

Answer: (b) Unlimited liability


Question 7.
The board of directors of a joint stock company is elected by :
(a) General public
(b) Government bodies
(c) Shareholders
(d) Employees.

Answer

Answer: (c) Shareholders


Question 8.
Profits do not have to be shared. This statement refers to :
(a) Partnership
(b) Joint Hindu Family business
(c) Sole proprietorship
(d) Company.

Answer

Answer: (c) Sole proprietorship


Question 9.
The Head of the Joint Hindu Family business is called :
(a) Proprietor
(b) Director
(c) Karta
(d) Manager

Answer

Answer: (c) Karta


Question 10.
A partner whose association with the firm is unknown to the general public is called:
(a) Active partner
(b) Sleeping partner
(c) Nominal partner
(d) Secret partner.

Answer

Answer: (d) Secret partner.


Fill in the blanks

1. …… are business practise which are desirable form the point of new of society.

Answer

Answer: Business ethics


2. Business ethics depends on welfare of ……

Answer

Answer: Business


3. Business owes some …… towards society.

Answer

Answer: Society


4. …… gives partnership birth.

Answer

Answer: Compromises


5. The partner who invested capital only but not take a part in management is called ………

Answer

Answer: Inactive partner.


6. The liabilities of chief (owner) of Hindu undivided family are ……… on the contrary the liabilities of its members are ……..

Answer

Answer: Unlimited, limited


7. ……. only can take a part of JHF.

Answer

Answer: Who can take birth in family


8. The limit in Rs. of small scale industries is …………

Answer

Answer: One crore


9. Minimum number of members are required for company ………

Answer

Answer: Two


10. …….. company does not issue share capital.

Answer

Answer: Private


11. The first preference has been given for paying dividend …… shares.

Answer

Answer: Preference


12. The debenture required for mortgage of asset is called ………

Answer

Answer: Mortgage debenture


13. To making Article of Association for Joint Stock Pvt. Ltd. company is ……….

Answer

Answer: Not compulsory


14. Memorandum of Association of a company is …….. charter.

Answer

Answer: Non-convertible


15. In Memorandum of Association of company the rights and ……. are written.

Answer

Answer: Object


16. ……….. is a important document of a company.

Answer

Answer: Memorandum of Association


17. Company is a …….. person.

Answer

Answer: Artificial


18. The persons which construct a company is called ……..

Answer

Answer: Promoter


19. In Memorandum of Association at least ………. person’s sign is compulsory.

Answer

Answer: Seven.


20. …….. is to pursue those policies which are desirable for values of society.

Answer

Answer: Business responsibility


21. Maximum social welfare in business shows …….. responsibility.

Answer

Answer: Social


22. Moving vehicle causes …… pollution.

Answer

Answer: Air


23. The first objective of cooperative society is ……..

Answer

Answer: For provide service


24. The life of sole tradership is ……….

Answer

Answer: Uncertain


25. In sole tradership does have ……. capacity.

Answer

Answer: For making contract


26. For selecting any kind of business is …….. most important factor.

Answer

Answer: Financial


27. We need type of business for large scale production and distribution …………

Answer

Answer: Company


28. For public company ……. minimum number of members are required.

Answer

Answer: Three


29. For every proposal of company ……. having voting right.

Answer

Answer: Equity


30. The small parts of capital of every company is called …….

Answer

Answer: Shares


31. To making Memorandum of Association is ………

Answer

Answer: Compulsory


32. For purchasing share / debenture company issued its ……….. for inviting public.

Answer

Answer: Prospectus


33. In the absence of Article of Association the rules and regulations followed by company is ………

Answer

Answer: Table-A


34. Company incorporated in it …..

Answer

Answer: Company Act 1956


35. ……… is the evidence of existence of company.

Answer

Answer: Incorporation


36. Registration of company is called …….. company.

Answer

Answer: Incorporation


37. In place of prospectus ………. can issued.

Answer

Answer: Substitute prospectus


True or False

1. Co-operative society was originated in England and Germany.

Answer

Answer: True


2. Registration of partnership is compulsory.

Answer

Answer: False


3. Registration of sole tradership is compulsory.

Answer

Answer: False


4. Company is a word of French language.

Answer

Answer: Flase


5. Equity share capital is included ownership capital.

Answer

Answer: True


6. Debenture holder is included in ownership capital.

Answer

Answer: False


7. After getting maturity then member of family can become partner of family business.

Answer

Answer: False


8. The having one member can never be company.

Answer

Answer: False


9. Partnership deed defines oral agreement among partners.

Answer

Answer: False


10. Private company start business after obtaining the certificate of incorporation.

Answer

Answer: False


11. When company became existence the work of promoter ends.

Answer

Answer: True


12. M.O.A. is a important document of company.

Answer

Answer: True


13. Article of Association is compulsory.

Answer

Answer: False


14. For registration of company prospectus of company is compulsory.

Answer

Answer: False


15. In partnership responsibility of members are limited.

Answer

Answer: Flase


16. Secracy in sole tradership is always profitable.

Answer

Answer: Flase


17. Chief of Hindu family is called Karta.

Answer

Answer: True


18. Public company do not issued prospectus.

Answer

Answer: False


19. Public deposit is a medium term source of finance.

Answer

Answer: True


20. Preference shares do not have the right of getting dividend.

Answer

Answer: False


21. First company act was passed in India on 1850.

Answer

Answer: True


22. There is no risk in sole tradership.

Answer

Answer: False


23. Public sectors main aim is not to earn profit.

Answer

Answer: False


24. Alteration in Article of Association is easy.

Answer

Answer: True


25. Company can alter in memorandom of association by passing a ordinance.

Answer

Answer: True


26. Private company start business instantly after getting certificate of incorporation.

Answer

Answer: True


27. A.O.A. is second important document of company.

Answer

Answer: True


28. Table-A can be the subsitute of A.O.A.

Answer

Answer: True


Match the Columns

(A)

(A) (B)
1. Minimum number of members (a) Partnership
2. 20 maximum number of members (b) Co-operation
3. Co-operative society (c) 1946
4. Partnership Act (d) 1932
5. Unlimited liabilities (e) 1956
6. Membership of Hindu undivided family (f) Karta
7. Hindu joint family Act (g) Quick decision
8. Sole tradership (h) By birth
9. Public company (i) Private Ltd.
10. Private company (j) Ltd.
11. Sony company (k) Domestic company
12. Godrej (l) Domestic company
13. Interference in management (m)   F.D.I.
14. Finance short term (n) Debenture
15. Borrowed fund (o) Commercial Bank
16. International sources of finance (p) Shareholder State
17. Mitakshra community (q) State Bank of India
18. Form by special law (r) Hindu joint family
19. Insurance company Act (s) 1949
20. Banking company Act (t) 1938
21. Multinational company (u) Ownership in the hands of govt. and private
22. Joint ventures (v) Business in several countries.
Answer

Answer:

(A) (B)
1. Minimum number of members (b) Co-operation
2. 20 maximum number of members (a) Partnership
3. Co-operative society (c) 1946
4. Partnership Act (d) 1932
5. Unlimited liabilities (f) Karta
6. Membership of Hindu undivided family (h) By birth
7. Hindu joint family Act (e) 1956
8. Sole tradership (g) Quick decision
9. Public company (j) Ltd.
10. Private company (i) Private Ltd.
11. Sony company (l) Domestic company
12. Godrej (k) Domestic company
13. Interference in management (p) Shareholder State
14. Finance short term (o) Commercial Bank
15. Borrowed fund (n) Debenture
16. International sources of finance (m) F.D.I.
17. Mitakshra community (r) Hindu joint family
18. Form by special law (q) State Bank of India
19. Insurance company Act (t) 1938
20. Banking company Act (s) 1949
21. Multinational company (v) Business in several countries.
22. Joint ventures (u) Ownership in the hands of govt. and private

(B)

(A) (B)
1. Promotion of a company (a) Prospectus
2.  Compulsory document (b) Memorandum of Association
3. Secondary document (c) Promoter
4.  Issue of debenture (d) Article of Association
5. Incorporation of company (e) 1956
6. Company Act (f) Company
7. Seal (g) Public company
8. Issue of Prospectus (g) Table-A
9. Article of Association (h) Substitution
10. Alternative of prospectus (i) Compulsory
Answer
(A) (B)
1. Promotion of a company (c) Promoter
2. Compulsory document (b) Memorandum of Association
3. Secondary document (d) Article of Association
4. Issue of debenture (a) Prospectus
5. Incorporation of company (j) Compulsory
6. Company Act (e) 1956
7. Seal (f) Company
8. Issue of Prospectus (g) Public company
9. Article of Association (h) Table-A
10. Alternative of prospectus (i) Substitution

(C)

(A) (B)
1. Responsibility towards shareholders  (a) Payment of taxes on time
2. Responsibility towards consumers (b) Provide optimum remuneration
3. Responsibility towards employees (c) Provide good quality products
4. Responsibility towards government (d) Environmental protection
5. Responsibility towards society (e) Provide adequate dividends.
Answer

Answer:

(A) (B)
1. Responsibility towards shareholders (e) Provide adequate dividends.
2. Responsibility towards consumers (c) Provide good quality products
3. Responsibility towards employees (b) Provide optimum remuneration
4. Responsibility towards government (a) Payment of taxes on time
5. Responsibility towards society (d) Environmental protection

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