Business studies ch 2 and 7

1.   What is a sole proprietorship ?

• a)  Refers of unlimited liability .

• a)  Refers to a form of business organization which is owned , managed  and controlled by an individual .

• both a and b

• None of the above

Company are divided into two :-

True or False :- Private companies have more than 8 member and 3 directors

• True

• False

Find out the feature of sole proprietorship .

" the risk of failure of business is borne all alone by the sole proprietor . if the business is successful the proprietor enjoys all the benefits . He / she will receives all the business profits which become a direct rewards for his risk bearing "

• control

• formation or closure

• liability

• None of this are right

In Joint Hindu Family Business , when the Karta dies will the business close

choose the right answer of this question

• Yes , the next head of the family can be the next Karta and business will continue

• No , the business will close

• both a and b are wrong

In which of the following the business organizations that the liability are unlimited and personal assets may be used for repaying debts in case the business assets are insufficient

• Joint stock company

• Joint Hindu family business

• partnership

• sole proprietorship

Write any three features about joint stock company

This business organisation tells us that the owners have minimal influence in terms o controlling or running the business and its is also because the shareholder are spread all over the country and a very small percentage attend the general meetings . Identify the limitation of the joint stock company .

• complexity in formation

• lack of secrecy

• conflict in interests

• oligarchic management

---------- is the discovery of business opportunities and organization of funds , property and management ability into business concern for the purpose of making profit .

which of the following is the most important document ?

• MoA

• AoA

• both of a and b

• None of this