Ch 2 - Forms of Business Organisations

The best definition of a sole trader form of business organization is:

• The business only employs one person

• The business is owned by 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:

• Owners have limited liability

• Shares can be sold to raise capital

• Decisions and responsibilities can be shared

• The owner has independence

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

• Capital is limited to the owner’s savings and bank loans

• Decisions take too long to make

• As they are government-owned there is no profit motive

• The owners may disagree

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

• All partners always have limited liability

• Shares can be sold on the Stock Exchange

• The business survives the death of the partners

• The business has access to more capital than a sole trader

Which of the following statements about co-operative business organizations is true?

• All co-operatives are only concerned with retailing.

• Profits are shared equally amongst members.

• They are owned by shareholders.

• Workers have no say in decision-making.

The form of business organisation which is specifically found in India is:

• Sole proprietorship

• NGO

• Cooperative society

• Joint Hindu Family business

Cooperative Societies are compulsorily registered under which of the following Act:

• The Companies Act, 2013

• The Cooperative Societies Act, 1922

• The Cooperative Societies Act, 1956

• The Cooperative Societies Act, 1912

How many types of Cooperative Societies are there:

• 2

• 6

• 4

• 8

Satish lost his job during the Covid-19 pandemic now he wants to start a business of his own in his hometown, Satish had limited finance available with him and he does not want many legal formalities to start a business, suggest Satish which forms of business organisation he should go for:

• Partnership

• Sole proprietorship

• Joint hindu family business

• Cooperative society

Minimum number of members required to form a public company is:

• 12

• 1

• 7

• 2