Business and Commerce MCQs

Question 1

The oldest form of business organization is _________.

Accepted Answer

sole proprietorship

Answer

partnership

Answer

joint stock company

Answer

co-operative undertaking

Question 2

Partnership may come into existence __________.

Accepted Answer

by an express or implied agreement only

Answer

by the operation of law

Answer

by an express agreement only

Answer

by inheritance of property

Question 3

Registration of partnership is ________.

Accepted Answer

optional under Indian partnership act

Answer

compulsory under the Indian partnership act

Answer

compulsory under the income tax act

Answer

compulsory under Indian contract act

Question 4

The most important advantage of a joint stock company form of business organization is that _________.

Accepted Answer

members can conveniently transfer their shares

Answer

the liability of its member is limited

Answer

it offers infinite scope for expansion

Answer

it mobilizes vast amount of financial resources

Question 5

In the co-operative organization, the voting rights of members are __________.

Accepted Answer

equal, irrespective of amount of capital contribution

Answer

in proportion to the capital paid by each member

Answer

in proportion to the nominal value of capital held by each member

Answer

in proportion to the total finance supplied including the amount of loan by each member

Question 6

Localized materials are available at _________.

Accepted Answer

certain places

Answer

all the places

Answer

central places

Answer

local places

Question 7

The minimum number of members for registration of a co-operative society is _________.

Accepted Answer

ten

Answer

two

Answer

seven

Answer

twenty

Question 8

Co-operative and public companies are similar in respect of __________.

Accepted Answer

the maximum number of members

Answer

the liability of members

Answer

the minimum number of members required for registration

Answer

method of distribution of profit

Question 9

The limit for maximum number of members in a public company is restricted to _________.

Accepted Answer

no limit

Answer

2000

Answer

5000

Answer

10000