Quiz on Forms of Business Organization

Liability of partners in a partnership business is generally of unlimited nature. But Neha joined a partnership firm in the year 2018 as a partner. As per the provisions of the firm she joined, the liability of the partners is limited and its firm name consists of a specific word LLP in it. Which of the following types of partnership is referred to in the above case?

• Partnership at will

• Particular Partnership

• General Partnership

• Limited Liability Partnership

A Joint Hindu Family business run by Mr. Sachin Agarwal, in Hyderabad, Telangana. In a centralized management environment, he is operating and manages all business activities as the Eldest Member of the family. How Mr. Sachin should be designated or recognized in the family business?

• Partner

• Coparcener

• Karta

• Elder Member

Which statement is not correct regarding companies?

• A minor as a partner can inspect the books of the firm.

• A company can refer to Table A if it does not prepare its articles of association.

• A private limited company can have a maximum of 200 members.

• One-person company is a company with one person as its member.

In which form of business are profits not shared?

• Company

• Partnership

• Cooperative society

• Sole proprietorship

What is the maximum amount a company can issue as capital called?

• Authorized Capital

• Subscribed Capital

• Issued Capital

• Called Up Capital

Ramesh is presenting himself as a partner of ABC Associates through his conduct or behavior. Clients dealing with the firm accept him as a partner due to his self-acclaimed attitude of being a partner of the firm. Which type of partner Mr. Ramesh is referred to in the above case?

• Active Partner

• Sleeping Partner

• Secret Partner

• Partner by Estoppel

Transfer of ownership is easy in which of the following?

• Partnership, joint stock company

• Sole proprietorship, partnership

• Sole proprietorship, joint stock company

• Joint-stock company, partnership

Which assertion is correct regarding sole proprietorship?

• Sole proprietorship has limited liability.

• Secrecy can be maintained in sole proprietorship.

• All sole proprietors are always honest.

• Sole proprietorship is a type of partnership.

Rakesh and Rajesh are two close friends who decided to take the franchise of Tata Sky. Both of them invested equally to get the franchise for their home district. It was agreed mutually between Rakesh and Rajesh to share the profits or losses of the firm on an equal basis. Name the form of business organizations run by the friends referred to in the above case.

• One-Person Company

• Sole Trading Concern

• Partnership

• Joint Venture

What is the liability of partners in a general partnership?

• Limited liability

• Unlimited liability

• No liability

• Conditional liability