Exam Question for Class 11 Business Studies Chapter 2 Forms of Business Organisation
Please refer to below Exam Question for Class 11 Business Studies Chapter 2 Forms of Business Organisation. These questions and answers have been prepared by expert Class 11 Business Studies teachers based on the latest NCERT Book for Class 11 Science and examination guidelines issued by CBSE, NCERT, and KVS. We have provided Class 11 Business Studies exam questions for all chapters in your textbooks. You will be able to easily learn problems and solutions which are expected to come in the upcoming class tests and exams for standard 10th.
Chapter 2 Forms of Business Organisation Class 11 Business Studies Exam Question
All questions and answers provided below for Exam Question Class 11 Business Studies Chapter 2 Forms of Business Organisation are very important and should be revised daily.
Exam Question Class 11 Business Studies Chapter 2 Forms of Business Organisation
Short /Long Answer type Questions :
Question. X and Y are best friends. They decided to start a business. Both of them contributed equal amount in the business. Being good friends, they did not sign any agreement. After some time conflicts rose between them. They start arguing with each other because of difference in opinions. This affected their business adversely.
(a) Name and state the form of business they have started.
(b) What mistake they have done?
Answer. (a) Partnership.
(b) They have no ‘Partnership Deed’.
Question. Rohit operates a textile business. His family is joint and has a lot of ancestral property. All the 15 family members are a part of this business. He is the eldest male member in the family so he heads the business. He is liable to all the creditors of the business as he is the decision-maker. Rohit’s grandson has just born a few days ago and he is also the member of the business.
(a) Which form of business is being undertaken by Rohit?
(b) Identify the features of this form of business highlighted in the above para.
Answer. (a) Hindu Undivided Family Business.
(b) Features of Hindu Undivided Family Business:
‘He is liable … the decision-maker.’
(ii) Minor members
‘Rohit’s grandson … member of the business.’
‘He is the eldest … heads the business.’
‘His family is joint … a part of this business.’
Question. What is the minimum number of persons needed to form following forms of business organisation:
(a) Sole proprietorship. (b) Joint Hindu Family Business.
(c) Private company. (d) Cooperative society.
(e) Partnership. (f) Public company. (3)
Answer. (a) One. (b) Two. (c) Two.
(d) Ten. (e) Two. (f) Seven.
Question. For which of the following types of business do you think a sole proprietorship form of organisation would be more suitable, and why?
(a) Grocery store. (b) Medical store.
(c) Legal consultancy. (d) Craft centre.
(e) Internet cafe. (f) Chartered accountancy firm.
Answer. a, b, d, and e.
(a) These businesses are carried out on small scale.
(b) These businesses require limited capital and limited managerial talent.
(c) In these businesses customers demand personalised services.
(d) In these businesses, risk is less.
Question. Money Ltd. issues 1,00,000 shares of ₹ 10 each for public subscription. Application (along with money) are received for 80,000 shares. Can the company allot these shares? Explain.
Answer. No, the company cannot allot these shares because the legal formality of ‘minimum subscription’ is not fulfilled. A company must receive the amount of minimum subscription in cash (which is 90% of the issued amount as per SEBI guidelines) within 120 days from the date of issue. Otherwise allotment cannot be made.
Question. Name the following:
(a) The most important or fundamental document of a company.
(b) The document containing the rules and regulations for the internal management of the affairs of a company.
(c) The amount of money which must be raised before allotment of shares.
(d) The clause specifies the maximum capital which the company will be authorised to raise through the issue of shares.
(e) The document called ‘Doctrine of Indoor Management’.
Answer. (a) Memorandum of Association. (b) Articles of Association.
(c) Minimum subscription. (d) Capital clause.
(e) Articles of Association.
Question. A promoter sells a property to the company at a price higher than he paid for it. What options does the company have?
Answer. The company can cancel the contract and recover the purchase price paid to the promoter. It can also claim damages for the loss suffered. Reason: A promoter cannot make any secret profit at the expense of the company. He is in fiduciary relation with the company (i.e., relationship of utmost faith).