Forms of Business Organisation

Which factor should be considered first while selecting a suitable form of business organization?

1. Colour of the office building
2. Nature and size of the business
3. Personal hobbies of the owner
4. Weather conditions

Which characteristic ensures that a company continues to exist even if shareholders change?

1. Limited Liability
2. Separate Legal Entity
3. Perpetual Succession
4. Common Seal

Which business organization mainly aims to provide service rather than earn maximum profit?

1. Sole Proprietorship
2. Joint Stock Company
3. Cooperative Society
4. Partnership

The liability of shareholders in a company is generally:

1. Unlimited
2. Limited to the unpaid value of shares held
3. Equal to company profits
4. Unlimited after retirement

Which of the following is NOT an advantage of a sole proprietorship?

1. Quick decision-making
2. Complete control
3. Unlimited financial resources
4. Business secrecy

Which form of business is most suitable for large-scale operations requiring huge capital?

1. Sole Proprietorship
2. Partnership
3. Joint Stock Company
4. HUF

Which form of business is governed by the Hindu Succession laws?

1. Joint Stock Company
2. Cooperative Society
3. Hindu Undivided Family (HUF) Business
4. Partnership

Which form of business is based on the principle of "one member, one vote"?

1. Sole Proprietorship
2. Partnership
3. Cooperative Society
4. Joint Stock Company

The maximum number of partners in a partnership firm carrying on banking business is:

1. 10
2. 20
3. 50
4. Unlimited

Which business organization has a separate legal entity from its owners?

1. Sole Proprietorship
2. Partnership
3. Joint Stock Company
4. Hindu Undivided Family Business

Which type of company can invite the general public to subscribe to its shares?

1. Private Company
2. Public Company
3. Sole Proprietorship
4. Partnership Firm

Which document contains the terms and conditions governing a partnership firm?

1. Memorandum of Association
2. Articles of Association
3. Partnership Deed
4. Prospectus

A partnership firm is formed by:

1. One person only
2. Two or more persons who agree to carry on a business and share profits
3. Government departments
4. Shareholders only

Which feature of a sole proprietorship means that the owner is personally responsible for all business debts?

1. Separate Legal Entity
2. Limited Liability
3. Unlimited Liability
4. Perpetual Succession

Which form of business organization is owned, managed, and controlled by a single individual?

1. Partnership
2. Joint Stock Company
3. Sole Proprietorship
4. Cooperative Society