{"id":18402,"date":"2021-02-09T15:38:24","date_gmt":"2021-02-09T10:08:24","guid":{"rendered":"https:\/\/ncertsolutions.guru\/?p=18402"},"modified":"2021-03-04T10:47:40","modified_gmt":"2021-03-04T05:17:40","slug":"ncert-solutions-for-class-11-business-studies-chapter-2","status":"publish","type":"post","link":"https:\/\/ncertsolutions.guru\/ncert-solutions-for-class-11-business-studies-chapter-2\/","title":{"rendered":"NCERT Solutions for Class 11 Business Studies Chapter 2 Forms of Business Organisation"},"content":{"rendered":"

Detailed, Step-by-Step NCERT Solutions for 11 Business Studies<\/a> Chapter 2 Forms of Business Organisation Questions and Answers were solved by Expert Teachers as per NCERT (CBSE) Book guidelines covering each topic in chapter to ensure complete preparation.<\/p>\n

Forms of Business Organisation NCERT Solutions for Class 11 Business Studies Chapter 2<\/h2>\n

Forms of Business Organisation Questions and Answers <\/span>Class 11 Business Studies Chapter 2<\/h3>\n

Tick the appropriate answer :<\/span><\/p>\n

Question 1.
\nThe structure in which there is the separation of ownership and management is called
\n(a) Sole Proprietorship
\n(b) Partnership
\n(c) Company
\n(d) All business organizations
\nAnswer:
\n(c) Company<\/p>\n

Question 2.
\nThe Karta in Join Hindu Family -business has
\n(a) Limited liability
\n(b) Unlimited liability
\n(c) No liability for debts
\n(d) Joint liability
\nAnswer:
\n(b) Unlimited liability<\/p>\n

\"NCERT<\/p>\n

Question 3.
\nIn a cooperative society the principle followed is
\n(a) One share one vote
\n(b) One man one vote
\n(c) No vote
\n(d) Multiple vote
\nAnswer:
\n(b) One man one vote<\/p>\n

Question 4.
\nThe board of directors of a joint stock company is elected by
\n(a) General public
\n(b) Government bodies
\n(c) Share-holders
\n(d) Employees
\nAnswer:
\n(c) Share-holders<\/p>\n

\"NCERT<\/p>\n

Question 5.
\nThe maximum number of partners allowed’in the banking business are ………….
\n(a) Twenty
\n(b) Ten
\n(c) No limit
\n(d) Two
\nAnswer:
\n(b) Ten<\/p>\n

Question 6.
\nProfits do not have to be shared. This statement refers to
\n(a) Partnership
\n(b) Joint Hindu Family business
\n(c) Sole Proprietorship
\n(d) Company
\nAnswer:
\n(c) Sole Proprietorship<\/p>\n

Question 7.
\nThe capital of a company is divided into number of parts each one of which are called
\n(a) Dividend
\n(b) Profits
\n(c) Interest
\n(d) Shares
\nAnswer:
\n(d) Shares<\/p>\n

\"NCERT<\/p>\n

Question 8.
\nThe Head of the Joint Hindu Family business is called
\n(a) Proprietor
\n(b) Director
\n(c) Karta
\n(d) Manager
\nAnswer:
\n(c) Karta<\/p>\n

Question 9.
\nProvision of residential accommodation to the members at reasonable rates is the objective of
\n(a) Producer\u2019s Cooperative
\n(b) Consumer\u2019s Cooperate
\n(c) Housing Cooperative
\n(d) Credit Cooperation
\nAnswer:
\n(c) Housing Cooperative<\/p>\n

\"NCERT<\/p>\n

Question 10.
\nA partner whose association with the firm is unknown to the general public is called
\n(a) Active Partner
\n(b) Sleeping Partner
\n(c) Nominal Partner
\n(d) Secret Partner
\nAnswer:
\n(d) Secret Partner<\/p>\n

Short Answer Questions<\/span><\/p>\n

Question 1.
\nFor which of the following types of business do you think a sole proprietorship form of organisation would be more suitable and why?
\n(a) Grocery store
\n(b) Medical store
\n(c) Legal consultancy
\n(d) Craft centre
\n(e) Internet cafe
\n(f) Chartered accountancy firm
\nAnswer:
\n(a) Grocery store – For grocery’ store, sole proprietorship is suitable form of business as it does not require large capital, lire individual management is required to run the store. It does not require professional skills and the business needs personal touch and control with customers and no legal formalities required to start the business.<\/p>\n

(b) Medical store – It is suitable for sole proprietorship as it does not need any legal formalities to start the business except to obtain licence from medical association. It does not require huge amount of capital and no professional management is needed.<\/p>\n

\"NCERT<\/p>\n

(c) Chartered accountancy firm – Sole proprietorship is suitable firm of business as it needs personal contact with the firms or customers, having technical knowledge, skill and professional degree are required.<\/p>\n

Question 2.
\nFor which of the following types of business do you think a partnership form of organisation would be more suitable, and why?
\n(a) Grocery store
\n(b) Medical clinic
\n(c) Legal consultancy
\n(d) Craft centre
\n(e) Internet cafe
\n(f) Chartered accountancy firm
\nAnswer:
\n(a) Legal consultancy – For legal consultancy, partnership form of business is suitable as it needs large volume of capital. Partners can accomplished different functions according to the area or division. The accounts are not published so it has more secrecy also.<\/p>\n

(b) Craft centre- For craft centre also, partnership firm is suitable as more financial resources are required. In craft Centre, partners may divide the work according to the suitability of the partner.<\/p>\n

(c) Internet cafe – In internet cafe, both sole proprietorship or partnership firm are suitable, but it will be more profitable in partnership as it require large amount of capital and to some extent involves risk also which will be shared among the partners.<\/p>\n

Question 3.
\nExplain the following terms in brief.<\/p>\n

    \n
  1. Perpetual succession<\/li>\n
  2. Common seal<\/li>\n
  3. Karta<\/li>\n
  4. Artificial person.<\/li>\n<\/ol>\n

    Answer:
    \n1. Perpetual succession:
    \nA company is a legal entity separate from its owners or members. It can be brought to an end only by law as it is created by the law. It will only cease to exist when a specific procedure for its closure, called winding up, is completed.<\/p>\n

    Members may come and go, but the company continues to exist through a consecutive succession of old members by new members on a continuous basis. We can say that \u2018perpetual succession\u2019 implies permanent existence which is not affected by death, retirement insolvency of members.<\/p>\n

    2. Common Seal:
    \nA company is a creation of law and exists independent of its members. The company is thus considered to be an artificial person who acts through its Board of Directors. When the Board of Directors enters into an agreement with others, it indicates the company\u2019s approval through a common seal.<\/p>\n

    The common seal is the engraved equivalent of an official signature. Any agreement which does not have the company seal put on it is not legally binding on the company.<\/p>\n

    3. Karta:
    \nThe head of the Joint Hindu Family who is the eldest member and controls the Joint Hindu Family business which is a specific form of business organization found only in India is called Karta. Joint Hindu Family business refers to a form of organization wherein the business is owned and carried on by the members of the Hindu Undivided Family (HUF).<\/p>\n

    It is governed by Hindu Law. The control of the family business lies with the Karta. He takes all the decisions and is authorized to manage the business. His decisions are binding on the other members. The Karta has unlimited liability while the liability of all other members is limited to their share of coparcenary property of the business.<\/p>\n

    4. Artificial Person:
    \nA company is called an artificial person because just like natural persons, a company can own property, incur debts, borrow money, enter into contracts, sue, and be sued but unlike them, it cannot breathe, talk, walk, eat, etc. A company is a creation of law and exists as an artificial person independent of its members.<\/p>\n

    \"NCERT<\/p>\n

    Question 4.
    \nCompare the status of a minor In a Joint Hindu Family business with that in a partnership firm.
    \nAnswer:
    \nWhen the inclusion of an individual into the business occurs due to the birth in the Hindu Undivided Family (HUF) is known as Minor. On the other hand, the partnership is based on a legal contract between two persons who agree to share the profits or losses of a business carried on by them and a minor is incompetent to enter into such a valid contract with others. Hence, a minor cannot become a partner in any firm. However, a minor can be admitted to the benefits of a partnership firm with the mutual consent of all other partners.<\/p>\n

    \"NCERT<\/p>\n

    Question 5.
    \nIf registration is optional, why do partnership firm willingly go through this legal formality and get themselves registered? Explain.
    \nAnswer:
    \nRegistration of Partnership – Under law, it is not compulsory to get the partnership firm registered. It is optional for the partners to get their firm registered. If they so desire, they can get their firm registered with the Registrar of Firms of the relevant State. The registration of a firm is a simple process. In order to get registered, a firm must submit an application to the Registrar of firms containing the followings:<\/p>\n