Here are 30 multiple-choice questions (MCQs) based on the topic "Forms of Business Organization" from Business Studies, with answers included:
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### 1. Which of the following is the simplest form of business organization?
A. Partnership
B. Corporation
C. Sole Proprietorship
**Answer: C. Sole Proprietorship**
### 2. Which form of business is owned and managed by a single person?
A. Sole Proprietorship
B. Joint Hindu Family Business
C. Cooperative Society
**Answer: A. Sole Proprietorship**
### 3. In which form of business organization is liability unlimited?
A. Corporation
B. Sole Proprietorship
C. Joint Stock Company
**Answer: B. Sole Proprietorship**
### 4. Which form of business organization has perpetual succession?
A. Partnership
B. Company
C. Sole Proprietorship
**Answer: B. Company**
### 5. Which of the following is NOT a characteristic of a partnership?
A. Limited liability
B. Mutual agency
C. Sharing of profits
**Answer: A. Limited liability**
### 6. What document governs the operations of a partnership firm?
A. Articles of Incorporation
B. Partnership Agreement
C. Memorandum of Association
**Answer: B. Partnership Agreement**
### 7. A partnership where all partners have unlimited liability is called:
A. General Partnership
B. Limited Liability Partnership
C. Joint Stock Company
**Answer: A. General Partnership**
### 8. The minimum number of partners required to form a partnership is:
A. One
B. Two
C. Five
**Answer: B. Two**
### 9. In a Joint Stock Company, the liability of shareholders is:
A. Unlimited
B. Limited to the amount of capital invested
C. Limited to personal assets
**Answer: B. Limited to the amount of capital invested**
### 10. The ownership of a company is divided into:
A. Shares
B. Bonds
C. Contracts
**Answer: A. Shares**
### 11. What type of business organization is created by a special act of the Parliament or State Legislature?
A. Sole Proprietorship
B. Government Company
C. Cooperative Society
**Answer: B. Government Company**
### 12. Which of the following is an advantage of a sole proprietorship?
A. Unlimited liability
B. Easy to form and dissolve
C. Shared profits
**Answer: B. Easy to form and dissolve**
### 13. In which form of business organization is ownership and management usually separate?
A. Sole Proprietorship
B. Partnership
C. Company
**Answer: C. Company**
### 14. A partner who only contributes capital but does not take part in the management is called:
A. Active Partner
B. Sleeping Partner
C. Nominal Partner
**Answer: B. Sleeping Partner**
### 15. The maximum number of members in a private company is:
A. 20
B. 50
C. 200
**Answer: C. 200**
### 16. A business organization formed by a group of people to promote the welfare of its members is called:
A. Corporation
B. Cooperative Society
C. Sole Proprietorship
**Answer: B. Cooperative Society**
### 17. Which of the following is a feature of a Joint Hindu Family Business?
A. Managed by karta
B. Liability of members is unlimited
C. Members cannot inherit the business
**Answer: A. Managed by karta**
### 18. A company whose shares are not offered to the general public is called a:
A. Public Company
B. Private Company
C. Cooperative Society
**Answer: B. Private Company**
### 19. A partner who lends their name to the partnership but does not take an active role is called:
A. Active Partner
B. Nominal Partner
C. Dormant Partner
**Answer: B. Nominal Partner**
### 20. A cooperative society is governed by the principle of:
A. Maximum profit
B. One man, one vote
C. Unlimited liability
**Answer: B. One man, one vote**
### 21. In a company form of business, the top decision-making authority is the:
A. Board of Directors
B. Managing Director
C. Shareholders
**Answer: A. Board of Directors**
### 22. The liability of the members in a cooperative society is:
A. Limited
B. Unlimited
C. Joint and several
**Answer: A. Limited**
### 23. Which of the following is an example of a government-owned company?
A. Reliance Industries
B. Indian Oil Corporation
C. Tata Consultancy Services
**Answer: B. Indian Oil Corporation**
### 24. Which form of business organization requires registration under the Companies Act?
A. Partnership
B. Cooperative Society
C. Company
**Answer: C. Company**
### 25. Which of the following forms of business organization is NOT considered a legal entity separate from its owners?
A. Corporation
B. Sole Proprietorship
C. Limited Liability Partnership
**Answer: B. Sole Proprietorship**
### 26. A company that sells shares to the public is referred to as:
A. Private Company
B. Public Company
C. Joint Venture
**Answer: B. Public Company**
### 27. Which form of business organization combines the benefits of limited liability with the flexibility of a partnership?
A. Sole Proprietorship
B. Limited Liability Partnership (LLP)
C. Cooperative Society
**Answer: B. Limited Liability Partnership (LLP)**
### 28. The document that defines the relationship between the company and outsiders is called:
A. Articles of Association
B. Memorandum of Association
C. Partnership Agreement
**Answer: B. Memorandum of Association**
### 29. Which of the following is a disadvantage of a sole proprietorship?
A. Unlimited liability
B. Difficulty in decision-making
C. High cost of formation
**Answer: A. Unlimited liability**
### 30. Which form of business organization is governed by the Indian Partnership Act, 1932?
A. Company
B. Partnership
C. Cooperative Society
**Answer: B. Partnership**
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