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Worksheets

Forms of Business Organisation

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

A type of business organisation where a person individual responsible for capital, bearing risk & management is called (a)  

2.

The most important document used in partnership business is (a)   .

3.

In a general partnership liability of partners is (a)  

4.

There is a separate law that governs sole proprietorship.

a)

true

b)

false

5.

A nominal partner is one who allows the use his/her name by a firm, but does not contribute capital.

a)

True

b)

False

6.

Which type of business organisation is the most popular and suitable for Small business.

a)

a) Joint Hindu Family

b)

b) Sole Proprietorship

c)

c) Partnership

d)

d) Cooperative society

7.

Registration of a partnership business is (a)  

8.

The Act which governs the formation of a partnership business is Indian Partnership Act.

a)

(a). 1932

b)

(b). 1956

c)

(c). 1949

d)

(d). 1912

9.

Name the type of partner.

(a)  

10.

Mention the maximum number of partners in partnership and under which Act it is mention.

a)

100, Indian Partnership Act 1945

b)

50, Indian Partnership Act, 1932

c)

50, Companies Act 2013

d)

100, Companies Act 2015

11.

Name the partner who does not contribute capital for business but held liable to outsiders.

a)

Partner by estoppel

b)

Secret Partner

c)

Active Partner

d)

Dormant Partner

12.

Hindu Succession Act was passed in _______

a)

1916

b)

1956

c)

1932

d)

2013

13.

Name the partnership in which partners can close partnership by giving notice.

a)

Partnership at will

b)

General Partnership

c)

Limited Liability Partnership

d)

Particular Partnership

14.

The members of Hindu undivided family business are called .

a)

Karta

b)

coparcener

c)

parcener

d)

Partner

15.

Registration of partnership firm is ...... in Maharashtra.

a)

voluntary

b)

compulsory

c)

easy

d)

lengthy

16.

A particular partnership firm can most likely be dissolved with

a)

Will of the partners

b)

Fulfillment of the firm's purpose

c)

Application of the firm's creditors

d)

Decision of the Court

17.

Meg and Ria run a boutique in a partnership, sharing profits and losses equally. The assets of the firm are worth ₹50,000, but the firm’s debts amount to ₹80,000. Who will be responsible to pay the debt of ₹30,000 over and above the assets?

a)

Debt will be paid wholly by Meg

b)

Debt will be paid wholly by Ria

c)

Debt will be paid equally by Meg and Ria

d)

Debt will be not be paid by Meg or Ria

18.

The Karta in Joint Hindu Family business has

a)

Limited liability

b)

Unlimited liability

c)

No liability for debts

d)

None of the above

19.

Tina owns a profitable small business of a restaurant and earns good revenues. One of her friends suggested her to expand the business, but as the sole owner of business, Tina was hesitant as she did not want to invest her complete savings. The limitation of sole proprietorship type of business highlighted here is_________.

a)

unlimited liability

b)

limited funds

c)

dilution of control

d)

limited managerial ability

20.

On the basis of duration partnership is divided into.

a)

(a). 4

b)

(b). 2

c)

(c). 5

d)

(d). 6

21.

In LLP What is the maximum no of partners?

a)

10

b)

50

c)

100

d)

unlimited

22.

Rohit is setting up a coaching institute. Which of the following factors related to starting of business will be NOT considered by Rohit?

a)

Whether to set up a partnership or sole proprietorship

b)

Pricing of the courses offered

c)

Location of the institute

d)

Layout of the classrooms & reception area

23.

A person is considered a partner ……… if, through his/her own initiative, conduct or behaviour, he/she gives an impression to others that he/she is a partner of the firm.

a)

Partner by holding out

b)

Nominal Partner

c)

Secret Partner

d)

Partner by estoppel

24.

A minor can be admitted to the benefits of an already existing partnership firm-

a)

with the consent of Managing Partner

b)

with the consent of all existing Partners

c)

with the consent of the court

d)

None of the above

25.

Every partner acts in the capacity of-

a)

an agent as well as a principal

b)

only an agent of the firm

c)

only principal of the firm

d)

None of the above