Test: Forms Of Business Organisations - 4


10 Questions MCQ Test Business Studies (BST) Class 11 | Test: Forms Of Business Organisations - 4


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This mock test of Test: Forms Of Business Organisations - 4 for Commerce helps you for every Commerce entrance exam. This contains 10 Multiple Choice Questions for Commerce Test: Forms Of Business Organisations - 4 (mcq) to study with solutions a complete question bank. The solved questions answers in this Test: Forms Of Business Organisations - 4 quiz give you a good mix of easy questions and tough questions. Commerce students definitely take this Test: Forms Of Business Organisations - 4 exercise for a better result in the exam. You can find other Test: Forms Of Business Organisations - 4 extra questions, long questions & short questions for Commerce on EduRev as well by searching above.
QUESTION: 1

The board of directors of a joint stock company are elected by

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QUESTION: 2

Every partner is both an agent and a principal. Identify the characteristic of partnership being referred here.

Solution:

Mutual agency is the right of all partners to represent the company's normal business operations and the authority to bind it to mutual contracts and agreements. In leman's terms, it is the authority given to a person doing business on behalf of the company, usually a business owner or partner.

QUESTION: 3

It is a form of business organization which is owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks. Identify the concept.

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QUESTION: 4

Which of the following forms of business enterprises suffer from lack of public confidence because they are not required to publish its accounts legally?

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QUESTION: 5

The members of which of the following business organizations do not have limited liability?

Solution:

According to me, The sole proprietor is personally liable for all the debts. ln case of heavy losses the proprietor will not only loss all his business assets but he may have to sell his personal property to pay back his debts.

QUESTION: 6

Which of the following business enterprises does not have a separate legal entity?

Solution:

Because a sole proprietorship is a type of business operated by one individual. the business is not considered a separate legal entity from its owner. its is profits and losses are included on the individual's personal tax return, and the owner has personal liability for business debts and lawsuits.

QUESTION: 7

What do you understand by the term unlimited liability?

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QUESTION: 8

Which of the following is the relation between persons who have agreed to share the profit of the business carried on by all or any one of them acting for all.?

Solution:

The Indian Partnership Act, 1932 defines partnership as "the relation between persons who have agreed to share the profit of the business carried on by all or anyone of them acting for all." Some people consider partnership to be relatively unpopular because the inherent features of partnership such as joint risk bearing and profit sharing, collective decision making, unlimited liability of partners, etc. Sometimes lead to conflicts among partners and undue burden on some of the partners. 

QUESTION: 9

Which of the following is a specific form of business organization where membership is by birth?

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QUESTION: 10

In a cooperative society, the principle followed is

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