Class 11 BSt Chap2 MCQ

### Chapter 2: Forms of Business Organisations

1. **What is the simplest form of business organization?**

   - A) Sole proprietorship

   - B) Partnership

   - C) Corporation

   - D) Cooperative

2. **Which form of business organization offers limited liability?**

   - A) Sole proprietorship

   - B) Partnership

   - C) Corporation

   - D) None of the above

3. **What is a unique feature of a partnership?**

   - A) Limited liability

   - B) Legal entity

   - C) Unlimited liability

   - D) No sharing of profits

4. **How is a cooperative society formed?**

   - A) Through mutual agreement among members

   - B) By a government charter

   - C) By purchasing shares

   - D) All of the above

5. **Which organization type typically exists for charitable purposes?**

   - A) Sole proprietorship

   - B) Limited liability company

   - C) Partnership

   - D) Trust

6. **In which type of business is profit and loss shared?**

   - A) Sole proprietorship

   - B) Partnership

   - C) Corporation

   - D) Cooperative society

7. **Which type of business organization is easiest to dissolve?**

   - A) Sole proprietorship

   - B) Partnership

   - C) Public limited company

   - D) Private limited company

8. **The liability of sole proprietorship business is:**

   - A) Limited

   - B) Unlimited

   - C) Dependent on company performance

   - D) Not applicable

9. **What does the 'perpetual succession' feature of a company mean?**

   - A) The company cannot be dissolved

   - B) The company continues to exist even if the owner dies

   - C) The company is bound by perpetual contracts

   - D) The company operates perpetually across borders

10. **Which type of business entity is formed by professionals such as accountants and lawyers often?**

    - A) Partnership

    - B) Sole proprietorship

    - C) Limited liability partnership

    - D) Cooperative

These questions should help provide a thorough review of the key concepts