Trade is an essential part of commerce. It refers to _____

sale, transfer or exchange of goods

The best definition of a sole trader from of business organization is _____

The business is owned by one person.

The business only employs one person.

The firm has a single customer.

There is a single firm in the industry.

One of the claimed advantages of a sole trader business is that ______

Shares can be sold to raise capital.

Decisions and responsibilities can be shared.

One of the disadvantages of a sole trader business is that _____

Capital is limited to owner's savings and bank loans.

Decisions take too long to make.

As they are government owned there is no profit motive.

One of the advantages of a partnership form of business organization is that _____

The business can make better decisions.

All partners have limited liability.

Shares can be sold on stock exchange.

The business survives the death of the partner.

Which of the following is Not a feature of private limited company?

Shares can be bought and sold on the Stock Exchange.

Shares can be issued to raise capital.

All owners of the business have limited liability.

The business continues after the death of shareholders.

Which of the following statements best applies to a public limited company?

It is owned by shareholders who can sell their shares on the Stock Exchange.

It is owned by the government and it is in the public sector.

It is quick and easy to set up with few legal formalities.

Its accounts can be kept private and it received little coverage in the business.

The main reason why the owners of many private limited companies convert into public limited companies is because ______.

They want to raise additional capital to expand the business.

They do not want to remain in the private sector.

They want to gain the benefits of limited liability.

They want to keep the annual accounts secret.

One of the main drawbacks of many public limited companies is that:

There can be a loss of control by the original owners as additional shares are sold.

Firms in the public sector are often less efficient.

If the company were to fail the shareholders could lose all of their assets.

Workers have to be asked for their opinions before major decisions are taken.

Which of the following statements about most public limited companies is true?

They are owned by shareholders but controlled by directors.

They are owned and controlled by the workers.

They are owned by the directors but controlled by the shareholders.

They are owned and controlled by the government

One of the reasons for a business buying a franchise is because:

The risks of failure are lower as it is buying a well-known business idea.

It is always much cheaper than setting up a new business venture.

There is complete control over important decisions.

The business can use its own name in advertisements.

One of the advantages to a business of selling a franchise is that:

The business can expand more quickly.

The franchisor owns all of the shops.

The businesses buying the franchises are certain to be successful.

The product sold in each shop will be different.

What are the disadvantages of a partnership?

Partnership must be reorganized if one partner quits

Partners share unlimited liability

Which of the following does not characterize business activity?

Production of goods and services

Sale or exchange of goods and services

Which of the following is false?

There is no effective control in HUF.

A private company is treated as a public company when it is a subsidiary of public company.

Hindu Succession Act, 1956 deals with HUF.

Partnership is registered under Indian Partnership Act, 1932.

Everyone is one way or the other affected by business because:

People work in a business environment

People buy goods produced by businesses

Business caters to demands of the customers

Which of the following is not an economic objective of the firm?

Conservation of natural resources

Profits and return on investment

Which of the following statements describes the best Joint Hindu/ Hindu Undivided Family(HUF) business?

It is a form of business particular to and recognized as such in India

Every family business is in fact an HUF business

In HUF, there is family involvement in business

Which of the following statements does not comprise economic activity?

A carpenter made furniture for its domestic use

Sale of old furniture by a household for a profit

CA foundation ch 1

Quiz

•

Business

•

Professional Development

•

Practice Problem

•

Medium

Varun Bhatia

Used 2+ times

FREE Resource

76 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

The possibilities of inadequate profits or even losses due to uncertainties are known as

Business Contingencies

Business Risks

Business Ventures

Business Activity

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Name two broad categories of business activities

Trade and Commerce

Trade and Industry

Industry and Commerce

None of these

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Commerce includes activities relating to trade and ______ to trade

Supporting

Subsidiaries

Auxiliaries

Assistance

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Earning of profit is considered to be the subsidiary objective of the business.

True

False

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Transfer of interest exists in case of ______

Profession

Employment

Business

None of these

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is not a part of non-economic activity?

Patriotism

Teaching

Sentiment

Sympathy

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Rendering of personalized expert service is a part of _____

Business

Profession

Employment

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CA foundation ch 1

76 questions

The possibilities of inadequate profits or even losses due to uncertainties are known as

Name two broad categories of business activities

Commerce includes activities relating to trade and ______ to trade

Earning of profit is considered to be the subsidiary objective of the business.

Transfer of interest exists in case of ______

Which of the following is not a part of non-economic activity?

Rendering of personalized expert service is a part of _____

The main purpose of economic activities is ______

Which of the following is an economic activity?

Which of the following is not a characteristic of business?

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