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Forms of Business Organisations- Part 1

Total questions: 12

Worksheet time: 4mins

Name
Class
Date
1.

Sole Proprietors have ________ liability

a)

Limited

b)

Unlimited

c)

Joint and Limited

d)

Joint and Unlimited

2.

It is not possible to maintain secrecy and confidentiality in sole proprietorship

a)

The statement is true

b)

The statement is false

c)

Depends on the nature of business

d)

Depends on the size of business

3.

Sole proprietorship business is best suited for

a)

large scale

b)

small scale

c)

medium scale

d)

all of these

4.

The identity of a sole trader is (a)   from his business

5.

Why do banks and financing institutions hesitate to lend loans to sole proprietors?

4 lines
6.

Is it mandatory for a sole proprietor to obtain license?

a)

Yes

b)

No

c)

Depends on the situation

7.

What are the two ways by which a sole proprietor can expand his/her business?

4 lines
8.

What is the minimum number of members required for a Joint Hindu Family Buiness?

a)

1

b)

2

c)

3

d)

4

9.

What are the two systems of inheritance under Hindu Law ?

4 lines
10.

What is the nature of liability of the coparceners in a Joint Hindu Family Business?

4 lines
11.

Which Law governs Joint Hindu Family Business?

a)

Hindu Succession Act 1956

b)

Joint Hindu Business Act 1954

c)

Hindu Undivided Family Act 1954

d)

Hindu Succession Act 1952

12.

Since the Karta cant be an expert in all areas of management, the business may suffer as a result of unwise decision. Which limitation of JHF is reflected here?

4 lines