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MCQs for CBSE Class 12 Business Studies Chapter 2: Central Board of Secondary Education(CBSE) has included MCQs as an integral part of the end-term exam question paper, making it important for students to practise MCQs. Here, we have listed MCQ-type questions for CBSE Class 11 Business Studies Chapter 2, Forms of Business Organizations. Solving MCQ-type questions can help you score good marks in upcoming CBSE End Term Examinations and prepares you for Competitive Exams.
In order to score well in MCQ-type questions, these aforementioned tips must be referred to:
- Read your chapters thoroughly
- Manage your time well
- Use a rough sheet for calculations
- Go through all the available options carefully
- Do not waste your time on questions you have no idea about
- Start with questions you are confident about
Related:
CBSE Class 11 Business Studies Revised Syllabus 2023-2024 (PDF)
MCQs for CBSE Class 11 Business Studies Chapter 1
MCQs for CBSE Class 11 Business Studies Chapter 2, Forms of Business Organizations
1)Liability of partners in a partnership business is generally of unlimited nature. But Neha joined a partnership firm in the year 2018 as a partner. As per the provisions of the firm she joined, the liability of the partners is limited and its firm name consists of a specific word LLP in it. Which of the following types of partnership is referred to in the above case?
(a) Partnership at will
(b) Particular Partnership
(c) General Partnership
(d) Limited Liability Partnership
Answer. d) Limited Liability Partnership
2)A Joint Hindu Family business run by Mr. Sachin Agarwal, in Hyderabad, Telangana. In a centralized management environment, he is operating and manages all business activities as the Eldest Member of the family. How Mr. Sachin should be designated or recognized in the family business?
(a) Elder Member
(b) Karta
(c) Coparcener
(d) Partner
Answer. b) Karta
3)Which of the following statement is not correct?
(a) A company can refer to Table A if it does not prepare its articles of association.
(b) A private limited company can have a maximum of 200 members.
(c) A minor as a partner can inspect the books of the firm.
(d) One-person company is a company, which has one person as its member.
Answer. c) A minor as a partner can inspect the books of the firm
4)Profits are not shared in case of
(a) Company
(b) Cooperative society
(c) Sole proprietorship
(d) Partnership
Answer. c) Sole Proprietorship
5)Assertion (A) Sole Trading Concern is treated as a “One Man Show”.
Reason (R) It is owned, controlled, managed, and operated by the owner all alone.
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct
Answer. a) Both A and R are true. R is the correct explanation of A
6)Ajeet started its Travel Agency in the year 2000 by taking a small room on Rent in Delhi. He invested money and efforts to build his business. Quality and timely services provided by his Travel Agency made him popular in Delhi. Name the form of business organization owned and operated by Ajeet.
(a) Partnership
(b) One-Person Company
(c) Joint Venture
(d) Sole Trading Concern
Answer. d) Sole Trading Concern
7)The maximum amount up to which a company can issue capital is called
(a) Authorized Capital
(b) Called Up Capital
(c) Issued Capital
(d) Subscribed Capital
Answer. a) Authorized Capital
8)Assertion (A) In a partnership firm the liability of all the partners is unlimited.
Reason (R) The partners are individually as well as jointly responsible for paying off business debts.
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct
Answer. a) Both A and R are true. R is the correct explanation of A
9)Ramesh is presenting himself as a partner of ABC Associates through his conduct or behavior. Clients dealing with the firm accept him as a partner due to his self-acclaimed attitude of being a partner of the firm. Which type of partner Mr. Ramesh is referred to in the above case?
(a) Active Prater
(b) Sleeping Partner
(c) Secret Partner
(d) Partner by Estoppel
Answer. d) Partner by Estoppel
10)After completing high studies in Hotel Management courses from one of the highly reputed Hotel Management Institutes of India, Mahesh decided to start his own Bakery in his hometown. His father arranged funds and supported him to commence his business. He recruited some staff and purchased the required equipment and machines. Within a few months, he started manufacturing bakery products in the market and sold them at reasonable prices. His quality products and reasonable prices helped him in making a good profit. Identify the form of business organization highlighted in the above case.
(a) Company
(b) Joint Hindu Family Business
(c) Sole Trading concern
(d) Partnership
Answer. c) Sole Trading Concern
11)Which of the following is not a clause of a memorandum of association?
(a) Capital clause
(b) Objects clause
(c) Director clause
(d) Name clause
Answer. c) Director Clause
12)Transfer of ownership is easy in the case of _____________ whereas it is difficult in the case of:
(a) Joint-stock company, partnership
(b) Sole proprietorship, joint stock company
(c) Sole proprietorship, partnership
(d) Partnership, joint stock company
Answer. a) Joint Stock company, partnership
13)Assertion (A) Secrecy can be maintained in the case of the sole proprietorship.
Reason (R) All Sole Proprietors are always honest.
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct
Answer. c) A is correct but R is incorrect
14)Rakesh and Rajesh are two close friends who decided to take the franchise of Tata Sky. Both of them invested equally to get the franchise for their home district. It was agreed mutually between Rakesh and Rajesh to share the profits or losses of the firm on an equal basis. Name the form of business organizations run by the friends referred to in the above case.
(a) Partnership
(b) One-Person Company
(c) Joint Venture
(d) Sole Trading Concern
Answer. a) Partnership
15)Sudhanshu is an active partner in a partnership firm, where, the liability of partners is unlimited. Partners are allowed to participate in the management of the firm business. All the partners are abiding by the rules framed in the partnership. Registration of a partnership firm is optional and the firm business may come to an end in the event of death, insolvency, and lunatic of any partner. Which type of partnership is referred to in the above case?
(a) General Partnership
(b) Partnership at will
(c) Limited Liability Partnership
(d) Particular Partnership
Answer. a) General Partnership
To download MCQs for CBSE Class 11 Business Studies Chapter 2, click on the link below
Also Find:
CBSE Class 11 Syllabus 2023-24 (All Subjects)
CBSE Class 11 Deleted Syllabus 2023-24 (All Subjects)
NCERT Class 11 Rationalised Content 2023-2024 (All Subjects)
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