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Business Environment CHAPTER-2 – CSEET MCQ

Business Environment


1. Which of the following is a form of business organisation?

    (a) Temple (b) Church

    (c) Partnership (d) Mosque.

2. Following is not a characteristic of business organisation:-

   (a) Discontinuity of operations (b) Distinct ownership (c) Lawful business (d) Risk involvement.

3. ____is a form of business that is owned, managed and controlled by an individual.

      (a) Partnership (b) Company

      (c) HUF (d) Sole Proprietorship.

4 Individual owing and running the business is known as:-

   (a) Single owner (b) Sole Trader

    (c) Single Trader (d) Businessman.

 5. Which is the oldest business form?

    (a) Partnership (b) HUF

    (c) Sole Proprietorship (d) Co-operative Society

6. Which of the following would have unlimited liability?

    (a) Co-operative Society (b) Company

    (c) Sole Proprietorship (d) Shareholders.

7. Which of the following is an advantage of sole proprietorship?

   (a) Easy formation (b)Maintenance of business secrecy (c) Both (a) and (b) (d) None of the above.

8. Which of the following has most stable existence?

   (a) Sole proprietorship (b) Partnership (c) Company (d) HUF.

9. Which form of organisation is only found in India?

   (a) HUF (b) Co-Operative Society

   (c) Joint Stock Company (d)Governmental Undertaking.

10. What is the maximum strength of HUF—?

  (a) 10 (b) 20

  (c) 100 (d) No limit.

11. The business affairs are managed by the head of the family, known as—

  (a) Co-parcener (b) Owner (c) Shareholder (d) Karta.

 12. Only co-parcener can become a Karta, This statement is—

   (a) True (b) False

   (c) Partly true (d) Partly false.

  13. Karta’s liability is—

  (a) Limited (b)Unlimited

 (c) Limited Iraylarantee (d) None of the above.

14. What is the maximum number of partners in any partnership firm?

  (a) 30


  (C) 50

  (d) No limit.

15. Mutual agency is an important feature of—

  (a) HUF (b) Joint Stock Company

  (c) Partnership (d) Co-operative Society.

16. Company have a perpetual succession and work under a common seal. This statement is—

  (a) True (b) False

  (c) Partly True (d) Partly False.

17. Company is managed by shareholders.

  (a) True (b) False

  (c) Can’t say (d) None of the above.

18. Statutory body is a body that is created under an Act enacted by

  (a) Association of people (b) Association of ministers (c) Both (a) and (b) (d) Judiciary.

19. RBI is an example of—

   (a) Departmental undertaking (b) Statutory corporation (c) Governmental undertaking (d) None of these.

20. In which of the following, the ownership of venture is reflected by ownership of shares or stock?

  (a) HUF (b) Partnership (c) Corporations (d) Trusts.

21. Statutory Body is a combination of___

(a) Public ownership and accountability

(b) Public ownership and business management

(c) Public and private ownership

(d) Public ownership, public accountability and business management

22. Following is not a type of co-operative society—

 (a) Producer’s cooperative society (b) Wholesaler’s cooperative society (c) Marketing co-operative society (d)Consumer’s co-operative society.

 23 LLP Act, 2008 came into effect on___

 (a) 31/4/2009 (b) 31/3/2008

 (c) 31/3/2009 (d) 31/4/2008.

24. For having direct control over the business activities, which form is preferred.

 (a) Partnership (b) Sole proprietorship (c) HUF (d) Company.

25. Which is not a characteristic of sole proprietorship?

  (a) No sharing of profit and loss (b) One-man’s capital

  (c) Less legal formalities (d) Association of persons.

26. What are the characteristics of HUF?

(a) Governed by Hindu Law (b) Continuity

 (c) Fluctuating share of each member (d) All of these.

27. Which is not an advantage of Joint Hindu Family business.

  (a) Limited resources (b) Continued existence

  (c) Freedom in managing (d) Assured share in profit.

 28. The companies are governed by which Act?

  (a) Indian Contract Act, 1872 (b) Partnership Act, 1932 (c) Indian Company Act, 2013 (d) None of these.

29. What are the advantages of company?

  (a) Great stability (b) Limited liability (c) Both (a) and (b) (d) None of these.

30. Cooperative society is that society which has been registered under the Cooperative Society Act ____________?

 (a) 1920 (b) 1932

 (c) 1912 (d) 1872.

31. LLP, this forms of organisation has been introduced in India by way of?

   (a) LLP Act, 2009 (b) LLP Act,2008

   (c) LLP Act, 1932

32 Which is the first step to start LLP? (d) None of these.

  (a) Acquire DPIN. Acquire DSC (b) Register DPIN

  (c) Download LLP forms

33. Which is the last step to end LLP? (d) Track status.

  (a) Receive certificate (b) Signature

  (c) File electronically (d) Track status.

34. “Co-operative” is derived from which word?

  (a) Greek word, co-operari (b) French word, co- operari

  (c) Latin word, co-operari (d) Indian word, co- operari

 35 And the odd one out’?

 (a) RBI (b) SBI

 (c) PNB (Punjab National Bank) (d) HDFC.

36. Direct motivation, maintenance of business secrets, close relations etc are the advantages of

 (a) Partnership (b) Limited liability partnership

 (c) HUF (d) Sole Proprietorship

37. The profit share of co-parceners in a HUF

 (a) Depends on the Capital Contributed (b) Depends on the decision of Karta

 (c) Is equal (d) None of the above

38 In case of death of a Co-parceners

(a) The wife of the deceased Co-parcener can demand partition

(b) Wife can become the co-parcener

(c) The wife can claim share of profit

(d) All of the above

39 Which of the following statement is true in respect of a HUF?

(a) The liability of co-parceners

(b) The liability of Karta is unlimited is limited

(c) Both (a) and (b)

(d) Neither (a) nor (b)

40. The maximum number of partners in a partnership firm

 (a)30 (b)50

 (c) 20 (d) None of the above

41. Which of the following statements is true

(a) The creditors can claim the entire debt from any r` the partner

(b) The partners can share profits in any ratio as agreed

(c) Both (a) and (b)

(d) Neither (a) nor (b)

42. Registration of Partnership is not compulsory but beneficiary.

 (a) True (b) Partly True

 (c) False (d) Partly False

43. In case of death of a partner

(a) The partnership dissolves (b) The partnership firm dissolves

(c) Both (a) and (b) (d) Neither (a) nor (b)

44. Greater Permanency, limited liability, case of transfer of ownership are the advantages of

 (a) HUF (b) LLP

 (c) Sole Proprietorship (d) Company

45. Lack of secrecy, promotion of frauds, separation of ownership from management are the disadvantages

 (a) Partnership (b) LLP

 (c) Company (d) All of the above

46. The minimum number of members to form a Co-operative Society is

  (a) Ten (b) Fifty

  (c) Hundred (d) Twenty

47. The main objectives of a Co-operative Society are

(a) Rendering service rather than

(b) Self help in place of dependence earning profits

(c) Mutual help instead of competition

(d) All of the above

 48. AMUL milk products is an example of

 (a) Co-operative Farming Society (b) Consumer Co-operative Society (c) Co-operative Credit Society (d) Co-operative Market Society

49. APPCO, Bayanika, Haryana 1-landloom are examples of

 (a) Co-operative Marketing Society (b) Co-operative Farming Society (c) Producers Co-operative Society (d) None of the above

50. The societies formed to provide financial support to the members are called

 (a) Co-operative Credit Society (b) Housing Co-operative Society

 (c) Co-operative Finance Society (d) None of the above

 51. Voluntary association, utilization of surplus, cash trading etc. are the characteristics of

  (a) Co-operative society (b) company

  (c) Statutory body (d) All of the above

52 Registration of co-operative society is compulsory.

  (a) True (b) False

  (c) Partly True (d) Partly False

53. The maximum members is rate of return that a co-operative society can distribute

 (a) 9% (b) 10%

 (c) 5% (d) 12%

54. The maximum rate of dividend that a Co-operative Society can distribute is

 (a) 90% of Surplus (b) 500/0 of Surplus

 (c) 100% of surplus (d) 10% of Surplus

55. The minimum amount to be transferred to the general reserve is

 (a) one-fourth of profits (b) one-half of profit

 (c) one-fifth of profit (d) None of the above

56. Which of the following statement is True?

(a) Co-operative Societies sell the goods on cash basis only

(b) Members can purchase goods on credit

(c) Both (a) and (b)

(d) Neither (a) nor (b)

57. Which of the following statement is true in respect of the voting rights of a member in a Co-operative Society?

(a) Each member has one vote

(b) voting rights are proportionate to the capital contributed

(c) voting rights is not exercised by the members,

(d) None of the above

58. The Co-operative Society is registered under the

 (a) Co-operative Societies Act,1932 (b) Indian Co-operative Societies Act, 1944 (c) Co-operative Societies Act, 1912 (d) All of the above

59. The maximum number of partners in a LLP are

 (a) No limit (b) 50 (c) 100 (d) 20


1 (c) 2 (a) 3 (d) 4 (b) 5 (c) 6 (c)

7 (c) 8 (c) 9 (a) 10 (d) 11 (d) 12 (a)

13 (b) 14 (c) 15 (c) 16 (a) 17 (b) 18 (b)

19 (b) 20 (c) 21 (d) 22 (b) 23 (c) 24 (b)

25 (d) 26 (d) 27 (a) 28 (c) 29 (a) 30 (c)

31 (b) 32 (a) 33 (a) 34 (c) 35 (a) 36 (d)

37 (c) 38 (c) 39 (c) 40 (b) 41 (c) 42 (a)

43 (a) 44 (d) 45 (c) 46 (a) 47 (d) 48 (d)

49 (c) 50 (a) 51 (a) 52 (a) 53 (a) 54 (a)

55 (a) 56 (c) 57 (a) 58 (c) 59 (a)

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