Forms of business organisation Quiz-1

................is a type of business unit where a person is solely responsible for providing the capital.

• Sole proprietorship

• Joint hindu family business

• Partnership

• Cooperative societies

Answer explanation

In a sole proprietorship, a person is solely responsible for providing the capital.

The liability of all the co-parceners except the ......... is limited to their share in the business, and consequently their risk is well-defined and precise.

• karta

• partners

• members

• shareholders

Answer explanation

The liability of all the co-parceners except the karta is limited to their share in the business, ensuring well-defined and precise risk.

Partnership is the relation which subsists between persons who have agreed to combine their property, labour or skill in some business and to share the profits between them.

• True

• False

• Can’t say

• Partly true

Answer explanation

Partnership is a relation where individuals agree to combine their property, labor, or skill in a business and share profits. The correct choice is True.

In a cooperative society, which of the following principle is followed?

• One share one vote

• One man one vote

• No vote

• Multiple votes

Answer explanation

In a cooperative society, the principle of 'One man one vote' is followed, which means that each member has an equal voting right.

The documents for registration of a company were filed on 21st March, 2021. The Certificate of Incorporation was issued on 28th March, 2021. But the date mentioned on the Certificate of Incorporation was 27th March, 2021. From which date will the company be considered to be in existence and the contracts signed will be considered valid.

• 21st March, 2021

• 28th March, 2021

• 27th March, 2021

• None of these

Answer explanation

The company will be considered to be in existence and the contracts signed will be considered valid from the date mentioned on the Certificate of Incorporation, which is 27th March, 2021.

A ……… partner is one whose association with the firm is unknown to the general public.

• secret

• active

• sleeping

• nominal

Answer explanation

A secret partner is one whose association with the firm is unknown to the general public.

A group of five people decided to make a company and hence approached IQ Business Consultants, a professional unit for seeking appropriate advice. This company helped them in identifying the different business opportunities and suggested to set up a bags manufacturing company. Before converting this business opportunity into a real project, IQ Business Consultants made certain arrangements for conducting technical, financial and economic surveys. For this, they took the help of specialists like professional accountants, lawyers and engineers. On the basis of the given information above, what is this group of five people called as?

• Underwriters

• Promoters

• Board of directors

• Managers

Answer explanation

The group of five people in this scenario are called promoters, as they approached IQ Business Consultants for advice on setting up a bags manufacturing company.

It can continue as long as the partners want and is terminated when any partner gives a notice of withdrawal from partnership to the firm.

• Partnership at will

• Particular partnership

• General partnership

• Limited partnership

Answer explanation

Partnership at will is a type of partnership that can continue as long as the partners want and is terminated when any partner gives a notice of withdrawal from the firm.

• A

• B

• C

• D

Answer explanation

The correct answer is A. It is the only option among A, B, C, and D that is correct.

Find out the liability of Anita in a company, who is a shareholder, holding 3,000 shares of 10 each. She has already paid 6 per share.

• 10,000

• 1,20,000

• 18,000

• 12,000

Answer explanation

Anita's liability in the company is calculated by multiplying the number of shares (3,000) by the remaining amount to be paid per share (10 - 6 = 4). Therefore, her liability is 3,000 * 4 = 12,000.