Forms of Business Organization: Commercial Enterprise of Selling and Buying

In this quiz, you will find questions related to the business organizations, their forms, types, etc.

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Profits do not have to be shared. This statement refers to :

Partnership Joint Hindu Family business Sole proprietorship Company.

The Head of the Joint Hindu Family business is called :

Proprietor Director Karta Manager

The structure in which there is separation of ownership and management is called:

Sole proprietorship Partnership Company All business organization.

_______ company needs to have only two directors.

Public Company Sole Proprietorship Private Company None of the above

Which of the following contract is signed by the promoters with the third party on behalf of the proposed company?

Preliminary contracts Provisional contract Prospectus Memorandum of association

Which one of the following is the CORRECT sequence of stages in the formation of a company?

Promotion, incorporation, capital subscription, the commencement of business Incorporation, capital subscription, promotion, the commencement of business Promotion, the commencement of business, incorporation, capital subscription Promotion, Incorporation, Certificate of commencement, capital subscription

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

Sole Proprietorship Partnership Company Cooperative Society

__________ company does not invite the public to subscribe to its share capital.

Both Private and Public Company Public Company Private Company None of the above

What is the limit of members in case of a Private Company?

2 7 10 50

The life of sole proprietorship business is ___________

Unstable Stable Very short life Long life

In a co-operative society, the principle followed is :

One share one vote

One man one vote

No vote

Multiple votes

The board of directors of a joint stock company is elected by :

General public

Government bodies



Provision of residential accommodation to the members at reasonable rates is the objective of_________

Consumers cooperative

Credit cooperative

Housing cooperative

Producers cooperative

The capital of a company is divided into number of parts each one of which are called__________





The maximum number of partners allowed in the banking business are?



No limit


In how many days the amount of minimum subscription must be received?

Within 120 days of the date of issue.

Within 110 days of the date of issue.

Within 10 weeks of the date of issue

Within 3 weeks of the date of issue.

A company cannot come into existence without__________

Getting certificate of incorporation.

Electing directors.

Issuing prospectus.

All of the options.

Which of the following cooperative society is established to help small producers in selling their products?

Producer cooperative society Marketing cooperative society Credit cooperative society Consumers cooperative society

A prospectus is issued by__________

A public company seeking investment, from public.

A private company

A public company.

A public enterprise

A company cannot came into existence without_________

Issuing prospectus

Electing directors

Certificate of incorporation

All of the options.

Quiz/Test Summary
Title: Forms of Business Organization: Commercial Enterprise of Selling and Buying
Questions: 20
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