MCQs on forms of business organization class 11, 12

MCQs on forms of business organization: Get important MCQs on forms of business organization with answers. These Business multiple-choice questions are important for classes 11, 12, and further studies.

MCQs on forms of business organization

1. A partner whose association with the firm is unknown to the general public is called:

 Secret Partner

 Sleeping Partner

 Active Partner

 Nominal Partner

2. Hindu Succession Act was passed in ………………..





3. In a cooperative society the principle followed is:

 Multiple votes

 No vote

 One share one vote

One man one vote

4. Profits do not have to be shared. This statement refers to

 Joint Hindu family business



 Sole Proprietorship

5. Provision of residential accommodation to the members at reasonable rates is the objective of:

 Consumer’s Cooperative

 Producer’s Cooperative

 Credit Cooperative

 Housing Cooperative

6. The Head of the joint Hindu family business is called





7. The Karta in Joint Hindu family business has:

 No liability for debts

 Joint liability

 Limited liability

 Unlimited liability

8. The life of a sole proprietorship business is ………………..



 Long life

 Very short life

9. The maximum number of partners allowed in the partnership business is

 No limit




10. What do you understand by the term unlimited liability?

The personal assets of the owner can be sold when the assets of the business are not enough

 The personal assets of the owner cannot be sold at all.

 The personal assets of the owner can be sold, according to the wish of the creditors

 The personal assets of the owner can be sold, only to a limited extent


11. A company that carries on its business in more than one country:

 Global Company

 Foreign Company

 International Company

 Overseas Company

12. A company which is created by a special Act of Parliament:

 Government Company

 Multinational Company

 Holding Company

13. A company that is incorporated outside India:

 Global Company

 Foreign Company

 International Company

 Overseas Company

14. At least 10 adults, no maximum limit in case of:


 Joint Hindu Family

 Cooperative Society


15. In case of …………… Registration is compulsory

 Sole Proprietorship



 None of these

16. It is a form of business organization that is owned, managed, and controlled by an individual who is the recipient of all profits and bearer of all risks. Identify the concept.

Sole Proprietorship

 Cooperative Society

 Joint Hindu family business


17. The board of directors of a joint-stock company is elected by:

 Government Bodies



 General Public

18. The capital of a company is divided into a number of parts each one of which is called:





19. The structure in which there is the separation of ownership and management as per law is called …………………

 Sole Proprietorship


 All Business Organizations


20. What is the limit of members in the case of a Private Company?





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