Forms Of Business Organisation(11th Grade > Business Studies ) Questions and answers for exam Preparation

11th Grade > Business Studies

FORMS OF BUSINESS ORGANISATION MCQs

Total Questions : 30 | Page 3 of 3 pages

Question 21.

Which is the form of organization where the initial cost of setting-up of the business is least?

Joint Stock Company
Sole Proprietorship
Partnership
All of the above

Discuss Question

Answer: Option B. -> Sole Proprietorship
:
B

As far as initial business setting-up costs are concerned, sole proprietorship is the least expensive way to start a business.

Question 22.

Rahul is a partner of an automobile firm. He adds money to the firm, handles the management and also shares the losses. But on the other hand, he hides his identity from the general public.

Nominal partners
Sleeping parnters
Secret partners
Active partners

Discuss Question

Answer: Option C. -> Secret partners
:
C

Secret partners hide their identity from the general public.

Question 23.

What is the capital consideration in a company?

Very little resources
A little resources
A lot of resources
None of the above

Discuss Question

Answer: Option C. -> A lot of resources
:
C

In a company, the financial resources is a lot as compared to partnership and sole proprietorship.

Question 24.

Spicetech is a medium sized firm. The firm sells spices to different parts of the world. Sita is a partner that adds money but yet does not take part in the daily management. She is a part of another company and handling the management there. What kind of partner is she?

Nominal partner
Sleeping partner
Active partner
Secret partner

Discuss Question

Answer: Option B. -> Sleeping partner
:
B

A sleeping partner is one who adds money but yet does not take part in the daily management.

Question 25.

Which type of organization is best when direct contact with customers is not required?

Sole Proprietorship
Partnership
Joint Stock Company
All of the above

Discuss Question

Answer: Option C. -> Joint Stock Company
:
C

A company is the best organization in regard to no contact with the customers.

Question 26.

Mr. Ram has his own artificial jewellery shop. He prefers to not join hands with any other persons, why?

He wants a small business. Limited savings and a personal connection to the business.
He wants a small business but prefers more risk.
He wants a small business. He prefers to roam and get clients.
None of the above.

Discuss Question

Answer: Option A. -> He wants a small business. Limited savings and a personal connection to the business.
:
A

Mr. Ram has his own shop. He prefers to not join hands with any other person, because in a small business, there are limited savings, and a personal connection to the business.

Question 27.

What is the maximum number of partners in a partnership firm?

Discuss Question

Answer: Option C. -> 50
:
C

Maximum no. of partners in a partnership firm is 50.

Question 28.

A partnership that is formed to create a certain objective or goal.

Partnership at Will
Particular Partnership
Limited Partnership
General Partnership

Discuss Question

Answer: Option B. -> Particular Partnership
:
B

A partnership that is formed to create a certain objective or goal is called particular partners.

Question 29.

Mr David is a well-known layer. He has joined a couple of firms for known facts and reasons. He is a partner of a big law firm in Mumbai. But he does not add capital, nor does he participate in the management. What kind of partner is he with the big law firm?