Forms of Business Organisation

NCERT Solution

MCQ Answer

Question 1: The structure in which there is separation of ownership and management is called

  1. Sole proprietorship
  2. Partnership
  3. Company
  4. All business organizations

    Answer: (c) Company

Question 2: The karta in Joint Hindu family business has

  1. Limited liability
  2. Unlimited liability
  3. No liability for debts
  4. Joint liability

    Answer: (b) Unlimited liability

Question 3: In a cooperative society the principle followed is

  1. One share one vote
  2. One man one vote
  3. No vote
  4. Multiple votes

    Answer: (b) One man one vote

Question 4: The board of directors of a joint stock company is elected by

  1. General public
  2. Government bodies
  3. Shareholders
  4. Employees

    Answer: (c) Shareholders

Question 5: The maximum number of partners allowed in the banking business are

  1. Twenty
  2. Ten
  3. No limit
  4. Two

    Answer: (b) Ten

Question 6: Profits do not have to be shared. This statement refers to

  1. Partnership
  2. Joint Hindu family business
  3. Sole proprietorship
  4. Company

    Answer: (c) Sole proprietorship

Quesiton 7: The capital of a company is divided into number of parts each one of which are called

  1. Dividend
  2. Profit
  3. Interest
  4. Share

    Answer: (d) Share

Question 8: The Head of the joint Hindu family business is called

  1. Proprietor
  2. Director
  3. Karta
  4. Manager

    Answer: (c) Karta

Question 9: Provision of residential accommodation to the members at reasonable rates is the objective of

  1. Producer’s cooperative
  2. Consumer’s cooperative
  3. Housing cooperative
  4. Credit cooperative

    Answer: (c) Housing cooperative

Question 10: A partner whose association with the firm is unknown to the general public is called

  1. Active partner
  2. Sleeping partner
  3. Nominal partner
  4. Secret partner

    Answer: (d) Secret partner

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