Chapter forms-of-business-organisation: Forms of Business Organisation Assertion-Reason Questions | business studies Class 11 CBSE

Chapter forms-of-business-organisation: Forms of Business Organisation Assertion-Reason Questions | business studies Class 11 CBSE | ByteNotes.in

Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 1

Logic Check

Assertion (A): A sole proprietor is personally liable for all the debts of the business even beyond business assets. Reason (R): In sole proprietorship, there is no distinction between the owner and the business in the eyes of law.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 2

Logic Check

Assertion (A): Registration of a partnership firm is compulsory under Indian law. Reason (R): An unregistered firm loses several legal rights including the right to sue third parties.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 3

Logic Check

Assertion (A): A joint stock company has perpetual succession. Reason (R): A company is a creation of law and can be ended only through the prescribed legal procedure of winding up.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 4

Logic Check

Assertion (A): In a cooperative society, a member with more capital has more voting power. Reason (R): Cooperative societies follow the principle of 'one man, one vote'.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 5

Logic Check

Assertion (A): The Karta of a Joint Hindu Family Business has unlimited liability. Reason (R): The Karta is the sole decision-maker and manager of the business and bears the full risk.

Reasoning Options

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Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 6

Logic Check

Assertion (A): A minor can become a full partner in a partnership firm with the consent of other partners. Reason (R): A minor is incompetent to enter into a valid contract under Indian law.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 7

Logic Check

Assertion (A): Sole proprietorship is the most suitable form of organisation for small businesses requiring personalised services. Reason (R): Sole proprietorship allows quick decision making and direct customer interaction without the need for consultation.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 8

Logic Check

Assertion (A): A company is required to mandatorily publish its accounts and financial information. Reason (R): This makes it difficult for companies to maintain secrecy about their operations.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 9

Logic Check

Assertion (A): Partnership is characterised by lack of continuity of business. Reason (R): The death, retirement, insolvency or insanity of any partner can bring the partnership to an end.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 10

Logic Check

Assertion (A): In a cooperative society, membership is compulsory for all eligible persons. Reason (R): The cooperative society is a voluntary association where membership is open to all irrespective of religion, caste, or gender.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 11

Logic Check

Assertion (A): A joint stock company can raise larger amounts of capital compared to a partnership firm. Reason (R): A company can issue shares to a large number of investors, while partnership is limited by the number and resources of partners.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 12

Logic Check

Assertion (A): In a sole proprietorship, there is no need to share profits with anyone. Reason (R): Sole proprietorship provides limited incentive to the owner to work hard.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 13

Logic Check

Assertion (A): A private limited company must add the words 'Private Limited' after its name. Reason (R): This is a legal requirement to distinguish it from a public company and inform the public about the restriction on share transfer.

Reasoning Options

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Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 14

Logic Check

Assertion (A): A nominal partner is liable to third parties for the debts of the firm. Reason (R): A nominal partner contributes capital to the firm and participates in its management.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 15

Logic Check

Assertion (A): A cooperative society has a separate legal identity from its members. Reason (R): Registration under the Cooperative Societies Act, 1912 is compulsory and grants the society a separate legal status.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 16

Logic Check

Assertion (A): Joint Hindu Family Business is governed by the Indian Partnership Act, 1932. Reason (R): The Joint Hindu Family Business is based on membership by birth and is governed by the Hindu Law.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 17

Logic Check

Assertion (A): Shareholders of a company can actively participate in the day-to-day management of the company. Reason (R): In a company, there is a separation of ownership and management — the Board of Directors manages the company.

Reasoning Options

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Assertion-Reason

Hard difficulty • Check the statement and reason

Hard

Question 18

Logic Check

Assertion (A): A limited partnership requires compulsory registration. Reason (R): Limited partners in such a firm have unlimited liability and their acts are binding on the firm.

Reasoning Options

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Assertion-Reason

Easy difficulty • Check the statement and reason

Easy

Question 19

Logic Check

Assertion (A): Sole proprietorship provides confidentiality of business information. Reason (R): A sole proprietor is not required by law to publish the firm's accounts.

Reasoning Options

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Assertion-Reason

Medium difficulty • Check the statement and reason

Medium

Question 20

Logic Check

Assertion (A): In a joint stock company, the liability of members is unlimited. Reason (R): Creditors can recover their claims from both the company's assets and the personal assets of shareholders.

Reasoning Options

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Chapter forms-of-business-organisation: Forms of Business Organisation | Assertion-Reason

Assertion (A): A sole proprietor is personally liable for all the debts of the business even beyond business assets. Reason (R): In sole proprietorship, there is no distinction between the owner and the business in the eyes of law.

Assertion (A): Registration of a partnership firm is compulsory under Indian law. Reason (R): An unregistered firm loses several legal rights including the right to sue third parties.

Assertion (A): A joint stock company has perpetual succession. Reason (R): A company is a creation of law and can be ended only through the prescribed legal procedure of winding up.

Assertion (A): In a cooperative society, a member with more capital has more voting power. Reason (R): Cooperative societies follow the principle of 'one man, one vote'.

Assertion (A): The Karta of a Joint Hindu Family Business has unlimited liability. Reason (R): The Karta is the sole decision-maker and manager of the business and bears the full risk.

Assertion (A): A minor can become a full partner in a partnership firm with the consent of other partners. Reason (R): A minor is incompetent to enter into a valid contract under Indian law.

Assertion (A): Sole proprietorship is the most suitable form of organisation for small businesses requiring personalised services. Reason (R): Sole proprietorship allows quick decision making and direct customer interaction without the need for consultation.

Assertion (A): A company is required to mandatorily publish its accounts and financial information. Reason (R): This makes it difficult for companies to maintain secrecy about their operations.

Assertion (A): Partnership is characterised by lack of continuity of business. Reason (R): The death, retirement, insolvency or insanity of any partner can bring the partnership to an end.

Assertion (A): In a cooperative society, membership is compulsory for all eligible persons. Reason (R): The cooperative society is a voluntary association where membership is open to all irrespective of religion, caste, or gender.

Assertion (A): A joint stock company can raise larger amounts of capital compared to a partnership firm. Reason (R): A company can issue shares to a large number of investors, while partnership is limited by the number and resources of partners.

Assertion (A): In a sole proprietorship, there is no need to share profits with anyone. Reason (R): Sole proprietorship provides limited incentive to the owner to work hard.

Assertion (A): A private limited company must add the words 'Private Limited' after its name. Reason (R): This is a legal requirement to distinguish it from a public company and inform the public about the restriction on share transfer.

Assertion (A): A nominal partner is liable to third parties for the debts of the firm. Reason (R): A nominal partner contributes capital to the firm and participates in its management.

Assertion (A): A cooperative society has a separate legal identity from its members. Reason (R): Registration under the Cooperative Societies Act, 1912 is compulsory and grants the society a separate legal status.

Assertion (A): Joint Hindu Family Business is governed by the Indian Partnership Act, 1932. Reason (R): The Joint Hindu Family Business is based on membership by birth and is governed by the Hindu Law.

Assertion (A): Shareholders of a company can actively participate in the day-to-day management of the company. Reason (R): In a company, there is a separation of ownership and management — the Board of Directors manages the company.

Assertion (A): A limited partnership requires compulsory registration. Reason (R): Limited partners in such a firm have unlimited liability and their acts are binding on the firm.

Assertion (A): Sole proprietorship provides confidentiality of business information. Reason (R): A sole proprietor is not required by law to publish the firm's accounts.

Assertion (A): In a joint stock company, the liability of members is unlimited. Reason (R): Creditors can recover their claims from both the company's assets and the personal assets of shareholders.

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