Class 11 Business Studies Chapter 2 Worksheet 1 (MCQs and Case-based Questions): Forms of Business Organisation

Class 11 Business Studies Chapter 2 Worksheet (Forms of Business Organisation)

As a Class 11 Business Studies student, are you ready to ace your BST exam?

Our expert team has designed this comprehensive Chapter 2 (Forms of Business Organisation) worksheet specifically for ambitious students.

This study material contains a strategic mix of MCQs, Assertion-Reason questions, and challenging case-based questions that test your analytical skills.

You can easily cover essential topics, including sole proprietorships, joint stock companies, partnership deeds, cooperative societies, and Hindu Undivided Family (HUF) businesses.

Before you proceed further, below are the quick details:

• Class: 11
• Subject: Business Studies
• Chapter Number: 2
• Chapter Name: Forms of Business Organisation
• Worksheet Number: 1
• Worksheet Type: MCQs and Case-based Questions

Table of Contents

Questions

Answers

The worksheet begins from here.

Class 11 BST Questions

Q1. The Board of Directors of a Joint Stock Company is elected by:

1. General public
2. Government bodies
3. Shareholders
4. Employees

Q2. Find any two similarities between joint stock companies and cooperative societies.

1. Limited Liability & Common Seal
2. Separate Entity & Formation
3. Limited Liability & Management Control
4. Separate Entity & Service Motive

Q3. The aim of such societies is to protect members from the exploitation of lenders who charge high rates of interest on loans. Identify the society referred to here.

1. Consumer's cooperative societies
2. Producer's cooperative societies
3. Credit cooperative societies
4. Farmer's cooperative societies

Q4. Assertion (A): The death or insanity of a member of the Joint Hindu Family business will bring its business to an end.
Reason (R): The business continues even after the death of the Karta as the next eldest member takes up the position of Karta.

1. Both (A) and (R) are true, and Reason (R) is the correct explanation of Assertion (A).
2. Both (A) and (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
3. Assertion (A) is true, but Reason (R) is false.
4. Assertion (A) is false, but Reason (R) is true.

Q5. According to the Indian Partnership Act, 1932, it is not compulsory for a partnership firm to get itself registered. Then why do partners prefer to get the firm registered?

Q6. Ankita Publishing House was a Private Ltd. Company. The publishing business was growing by leaps and bounds. The demand was huge. It required immense investments to set up its branches and printing base all over the country. The Board of Directors was thinking of offering shares to the public to meet investment requirements. On the basis of the above case, answer the following questions:

1. Identify the form of business organisation the Board members are thinking of forming.
2. Write any two benefits that would be denied if this form is accepted.
3. Write any two benefits that would be availed if this form is accepted by the company.

Q7. Mr. Naman has two sons, Harsh and Raman. After completing their graduation, his sons decided to start their own business of manufacturing readymade men’s clothes to earn money. Since they had a commercial space near their house, they started a factory. They purchased cloth in bulk for trousers and shirts from the wholesale market. They employed 10 tailors and 2 salesmen. Since some of their relatives were already in the same product line, they did not face any problems in finding buyers. They earned a 20% profit in their first year of operation. During the second year of their operations, due to a theft in their factory, they suffered a loss of Rs. 50,000. Their father told them not to lose heart, as risk is a part of every business. Their business started flourishing, and they opened their own outlet at a popular location in the city after a few years of operation. Due to tough competition in the men’s clothing business, they tried to enter into women’s clothing too. On the basis of the above information about the business done by Harsh and Raman, answer the following questions:

1. Quoting the lines from the above paragraph, identify and explain five features of business highlighted in the case.
2. State the feature NOT mentioned in the paragraph.

Q8. Boni Coffee House is a restaurant chain in India. It has a strong presence across India with nearly 250 coffee houses. These are governed by managing committees elected by employees. These are completely owned and managed by employees only. These have also received appreciation and support from the government and the public. The voting rights in these are neither tied to investment nor patronage. On the basis of the above information, answer the following questions:

1. Identify the form of business organisation highlighted in the above case.
2. Explain any three merits of the business organisation identified above.
3. Explain any two types of the business organisation identified in (a).

Q9. The private sector comprises various types of business organisations. However, there is a form of business organisation that restricts the right to transfer ownership in one of its types; on the other hand, the other type of the same business organisation allows its owners to transfer their ownership rights.

1. Identify the types of the form of business organisation highlighted in the above paragraph.
2. State any three other differences between the types identified in part (a).

Q10.

1. If registration is optional, why do partnership firms willingly go through this legal formality and get themselves registered? Explain.
2. "Even though it is not essential to have a written agreement between partners, it is advisable to have a written agreement as it constitutes evidence of the conditions agreed upon." Name the document discussed in the above line.

Q11. Aseem is running an export business. Every time he obtained an export order, he felt stressed and had anxiety about completing it on time. A few years later, his younger sister Aalia, after completing a course in fashion designing, joined him in the business as a partner. Consequently, Aseem realized that his level of stress and anxiety related to business operations had reduced substantially, and he had started feeling more relaxed. However, at the same time, he noticed that since both of them differ in their choice of colours for making garments, a lot of time is being wasted in reaching a mutual consent.

1. Identify and explain the related advantage of a partnership given in the case.
2. Identify and explain the related disadvantage of a partnership given in the case.

Q12. IFFCO's mission is to enable Indian farmers to prosper through the timely supply of reliable, high-quality agricultural inputs and services to improve their welfare. Similarly, Amul was established with the aim of providing a direct linkage between small milk producers and consumers by eliminating middlemen.

1. Identify and explain the types of cooperative societies discussed above.
2. Comment on the legal status, control, and liability of cooperative societies.

Formation of a Company

Q1. A company has to apply for the listing of shares in stock exchange, if permission is not received then the allotment will be void. Therefore permission shall be received within

1. 8 weeks from the date of closure of subscription list
2. 10 weeks from the date of closure of subscription list
3. 8 days from the date of closure of subscription list
4. 10 days from the date of closure of subscription list

Q2. Identify the table that can be used as an alternative of Article of Association

1. Table E
2. Tab le F
3. Table K
4. Table C

Q3. An application is made to at least one stock exchange for permission to deal in its shares or debentures. If such permission is not granted before the expiry of weeks from the date of closure of subscription list, the allotment shall become void and all money received from the applicants will have to be returned to them within days 9.

1. 10 & 8
2. 8 & 10
3. 6 & 7
4. 7 & 30

Q4. STATEMENT A: With the implementation of The Companies Act, 2013, a single person could constitute a company, under the One Person Company (OPC) concept.
STATEMENT B: The introduction of OPC in the legal system is a move that would encourage corporatization of micro businesses and entrepreneurship.

1. Both the statements are correct
2. Statement B is correct and Statement A is incorrect
3. Statement A is correct but statement B is incorrect
4. Both the statements are incorrect.

Q5. Contracts signed by promoters with third parties before the incorporation of the company are called

1. Provisional Contracts
2. PreliminaryContracts
3. Proposed Contracts
4. Capital Contracts

Q6. Stages in the formation of a public company are in the following order:

A Promotion, Incorporation, capital subscription, commencement of business
B Incorporation, Capital of Business, Capital Subscription Commencement of Business, Promotion
C. Promotion, Commencement of business
D. Capital Subscription, Promotion, Incorporation, Commencement of Business

1. D is correct
2. C is correct
3. B is correct
4. A is correct

Q7. The description of two documents required for incorporation of the company is given below.

Document specifying remuneration of directors - AOA
Document describing objectives of the company- MOA

Choose the correct name of these documents from the alternatives.

1. Article of association & Memorandum of association
2. Prospectus & Memorandum of association
3. Consent of proposed directors & Memorandum of association
4. Statutory declaration & Memorandum of association

Q8. Mohan, after completing his MBA from a reputed college, returned to India. He hired a cab (x) from the airport to his house at a fare of Rs 3000 as no cab was ready to go on meter Midway he got an idea to start a kind of cab facility in which all the cabs of his business will run on meser along with the total amount of fare will be known to the passenger before boarding his company's cab. He analyzed the idea with its operational viability, and was also able to arrange funds required to start the business as the idea seems to be profitable. Hence, Mohan decided to start a company with a name of "Cab Convenience"

In the above para, Mohan has performed the few steps of one of the stages of formation of the company, Explain the next three steps to be performed by Mohan to complete this stage of formation.

Q9. Axis Ltd. made an application for registration to the registrar of the company on 3 March 2024, with an objective of manufacturing jute bags to sell it within the country. The registrar issued the document on 8th of March, mentioning the date of 5th March on it, Later on it was discovered that the company had already entered into a contract with Alia Ltd. On 4th March, which it couldn't complete, Alia Ltd filed a suit against the company and also questioned the existence of Axis Ltd. But the court refused the claim of Alia Ltd.

1. Mention the document of formation of the company is highlighted here.
2. Identify and explain the type of contract in which Axis Ltd. Has entered.
3. Why the claim of Alia Ltd was refused by the court of law. Explain by quoting lines from case.

Q10. Aryan and Prabal have completed their degree in Business Administration and decided to start Connecting Alliance' an unregistered partnership firm dealing in installation of solar panels. Initially the firm got a good clientele and both the partners were sharing alluring amount of profits. Tejas, one of the clients made a default in making paymenta. Aryan and Prabal decided to file a case against him. They contacted a lawyer, Harshit who informed them that since it is an unregistered firm therefore they can't file a case against Tejas through the firm. However he can help them to get the firm registered under Partnership act 1932, to avoid such consequences in future. (3) Both the partners agreed and requested the lawyer to initiate the process of registration of 'Connecting Alliance'. State the steps that Aryan and Prabal will have to follow to complete the process of registration of 'Connecting alliance'.

Answers (Coming Soon)

The End

👉

A List of Notes:

Chapter 1  |  Chapter 2  |  Chapter 3  |  Chapter 4  |  Chapter 5  |  Chapter 6  |  Chapter 7  |  Chapter 8  |  Chapter 9  |  Chapter 10

---

👉

See More:

Click here to access more Business Studies Class 11 educational content (worksheets, case studies, MCQs, sample papers, and more).