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11th-OC-Forms of Organization

Total questions: 21

Worksheet time: 11mins

Name
Class
Date
1.

Sole proprietorship business can be started by

a)

at least seven persons

b)

any one person

c)

at least two persons

d)

at least three persons

2.

A sole proprietor has a limit in which of the following ability

a)

Managerial

b)

Owner

c)

Worker

d)

None of these

3.

Sole Proprietorship is most suitable for

a)

Medium scale concerns

b)

Large Scale concerns

c)

Small scale concerns

d)

None of the above

4.

The reason for the end of the sole proprietorship can be

a)

Insolvency

b)

Insanity

c)

Death

d)

All of the above

5.

The members of a Co-operative Society have

a)

Unlimited liability

b)

Limited liability

c)

Joint and Several liability

d)

Joint liability

6.

The principle followed in a co-operative society is

a)

No vote

b)

One man, one vote

c)

Multiple votes

d)

One share one vote

7.

A company is formed by

a)

Government

b)

Directors

c)

Promoters

d)

Owners

8.

The word limited should appear after the name of

a)

Partnership

b)

Registered company

c)

Statutory company

d)

None of these

9.

The minimum members in public limited company are:

a)

4

b)

2

c)

8

d)

7

10.

How many members have to sign a memorandum of association in case of a private company?

a)

5

b)

7

c)

2

d)

10

11.

The official signature of a company is called:

a)

Prospectus

b)

Debentures

c)

Shares

d)

Common Seal

12.

The company is managed by the group of persons known as:

a)

Board of directors

b)

Group of member

c)

Team of shareholders

d)

None of the above

13.

The two forms of business ownership with unlimited liability are:

a)

Sole trader

b)

Public company

c)

Partnership

d)

Private company

14.

Advantages of a sole trader are:

a)

Limited liability

b)

The owner makes all the decisions

c)

The owner takes all the profit

d)

Can raise substantial capital

15.

Advantages of a partnership are:

a)

The partners split the profit

b)

Unlimited liability

c)

Raise more capital than a sole trader

d)

Share the workload

16.

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

17.

The main disadvantage of a __________ is that each person is fully responsible for the acts of all other persons.

a)

Proprietorship

b)

Partnership

c)

Corporation

d)

Franchise

18.
What does LLP stand for?
a)
Limited Liability Partnership
b)
Lying Losers Pos
c)
Losing Limited Pace 
d)
Limited Liability Property
19.

Liability of Karta in JHFB is

a)

Limited

b)

Less

c)

Unlimited

20.

The main motive of Co-operative Society is

a)

to earn profit

b)

to render service

c)

to provide gifts

21.

A Partner who is unknown to the third party

a)

Active Partner

b)

Nominal Partner

c)

Secret Partner