This a MCQ (Multiple Choice Question) based practice test of Chapter 2 - Forms of Business Organisations of Business Studies of Class XI (11) for the quick revision/preparation of School Board examinations
Q The structure in which there is separation of ownership and management as per law is called
The management and control of the affairs of the company is undertaken by the Board of Directors, which appoints the top management officials to the business. The managers are accountable to shareholders who are the owners of the company.
The karta in Joint Hindu family business has
The joint Hindu family business is controlled by the head of the family who is the eldest member and is called Karta. The karta has unlimited liability while the liability of all other members is limited to their share of co-parcenery property of the business.
In a cooperative society the principle followed is
One man one vote principle is followed by cooperative society. Cooperative society is established for social welfare. So it does not follow such rules that are based on wealth.As our country's construction says one man one vote is followed by cooperative society.
The board of directors of a joint stock company is elected by
The Shareholders Meeting of a joint stock company (JSC) has the authority to appoint and dismiss members of the Board of Directors. Appointment of a Board Member must be conducted through cumulative voting. Under cumulative voting principle, whenever a JSC elects new Board Members, each shareholder will have a number of votes equal to the number of new Board Members to be elected times the number of voting shares held by such shareholder and such shareholder may cash all or some of his/her votes for any candidate.
The maximum number of partners allowed in the banking business are
Correct Answer :- c
Explanation : As per the Companies Act, 2013 the maximum number of members in a partnership firm is 100. The minimum number of partners should be atleast 2. The maximum number of members for a firm carrying banking business is 10.
Profits do not have to be shared. This statement refers to
The capital of a company is divided into number of parts each one of which are called
Shares are units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends. The two main types of shares are common shares and preferred shares. Physical paper stock certificates have been replaced with electronic recording of stock shares, just as mutual fund shares are recorded electronically.
The Head of the joint Hindu family business is called
In Hindu joint family, the senior most male ascendant is the head of the family and is called The Karta. Karta represents the family and acts on its behalf. He is responsible to maintain all member can sue him for the maintenance and can also recover the arrears of the maintenance.
Provision of residential accommodation to the members at reasonable rates is the objective of
Co-operative housing societies are established to help people with limited income to construct houses at reasonable costs and giving the option of paying in installments.
A partner whose association with the firm is unknown to the general public is called
A secret partner is one whose association with the firm is unknown to the general public. He is like the rest of the partners in all other aspects.