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Forms of business organizations

Total questions: 27

Worksheet time: 29mins

Name
Class
Date
1.

It is an artificial being created by the operation of law, having right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence is called_________.

a)

Cooperative

b)

Corporation

c)

Partnership

d)

Sole Proprietorship

2.

A concept which states that the transactions of the business must be distinguished and differentiated from the transactions of the owners is called ____.

a)

Business entity concept

b)

Business permit concept

c)

Business tax concept

d)

Business financial report concept

3.

The following are rights of a Corporation, EXCEPT:

a)

It can acquire property in its own name

b)

It is required by the Corporation Code that 25% of the subscribed capital must be paid up to the Stockholders.

c)

It is authorized to issue a certain number of stock

d)

It can acquire property in the name of the owner

4.

A business organization that has not less than five but not more than 15 members is called ____.

a)

Cooperative

b)

Corporation

c)

Partnership

d)

Sole Proprietorship

5.

The following are disadvantages of a Partnership, EXCEPT:

a)

Unlimited liability

b)

Limited existence

c)

mutual agency of the partners

d)

larger sources of funds

6.

The two forms of business ownership with unlimited liability are:

a)

Sole trader

b)

Public company

c)

Partnership

d)

Private company

7.

Which of the following best describes the term limited liability? If the business fails:

a)

Personal possessions of the owner can be taken to pay any debts

b)

The owner is personally liable for all the debts of the business

c)

There is no limit on the amount the owner has to pay to settle debts

d)

The owner only loses the amount invested in the business

8.

It is a form of business ownership, where there is one owner who's responsible for the business.

a)

SOLE PROPRIETORSHIP

b)

PROPRIETORSHIP

c)

SOLE PREPRIOTERSHIP

d)

SOAL PROPREITORSHIP

9.
What does LLP stand for?
a)
Limited Liability Partnership
b)
Lying Losers Pos
c)
Losing Limited Pace 
d)
Limited Liability Property
10.

Members of Joint stock company are called?

a)

Partners

b)

Shareholders

c)

Directors

d)

Members

11.

Maximum number of members in Public Limited company

a)

No limit

b)

100

c)

50

d)

200

12.

Which of the following is feature of Joint Stock Company?

a)

One man control

b)

Two or more person

c)

Service Motive

d)

Voluntary Association

13.

Governing law for Joint Stock company

a)

Hindu succession Act

b)

Indian Companies Act

c)

Partnership Act

d)

Indian co-operative society Act

14.

How many representative OPC can have

a)

1

b)

2

c)

3

d)

4

15.
In a general partnership,
a)
the business continues even if one partner dies
b)
partners must pay specific business taxes on stock they issue
c)
partners usually draw up legal papers called articles of partnership.
d)
partners are only liable for the business' debt up to the amount of their investment
16.
Partners who are only responsible up to the extent of their investment
a)
limited partnership
b)
trading partnership
c)
non-trading partnership
d)
special partnership
17.

It is optional for a partnership firm to get registered

a)

True

b)

False

c)

Partly true

d)

None of the above

18.

Minors can be admitted to share only (a)   of the firm

19.

Who among the following partners does not contribute capital

a)

Active

b)

Sleeping

c)

Secret

d)

Partner by Estoppel

20.

Two construction firms joined together to complete building a flyover in Noida. What type of partnership have they formed?

(a)  

21.

In a cooperative society, the power to take decisions lies in the hands of-

a)

Elected Managing Committee

b)

Members

c)

Partners

d)

Board of Directors

22.
One important advantage of forming a partnership is that this form of business organization gives each owner sole control over the business.
a)
True
b)
Fale
23.
Walmart is an example of what type of business organization?
a)
Sole Proprietorship
b)
Partnership
c)
Corporation
24.

No paperwork (charter or agreement) is required to start which type of business?

a)

Partnership

b)

Franchise

c)

Sole Proprietorship

d)

Corporation

25.

Which of the following type of business is NOT a producer?

a)

pharmacy

b)

applicance factory

c)

coal mine

d)

chicken farm

26.

The people who make the major policy and financial decisions for a corporation are called the

a)

stockholders

b)

owners

c)

board of directors

d)

partners

27.

A unique business organized by two or more other businesses to operate for a limited time and for a specific project is called a

a)

joint venture

b)

limited liability partnership

c)

limited liability company

d)

nonprofit corporation