case study questions for class 11 business studies chapter 2

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Class 11 Business Studies Case Study Questions

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CBSE Class 11 Business Studies Case Study Questions are available on myCBSEguide App . You can also download them from our student dashboard .

For students appearing for grade 11 CBSE exams from the Commerce stream, Business Studies is a fundamental subject. Business Studies is considered to be quite interesting as well as an occupying subject as compared to all other core subjects of the CBSE class 11 commerce stream. To ace this CBSE exam, students are not only required to work hard but they ought to learn to do smart work too.

Among all the other core subjects of the Commerce stream i.e accountancy, economics and business studies, Business Studies is the one that is purely theoretical. It is termed to be comparatively easier and more scoring than the other mandatory subjects of the commerce stream. Many students who opt for the commerce stream after their 10-grade exams desire to learn in-depth about the business organizations and their work, for them the subject is of utmost importance. Business Studies is an essential component of the class 11 commerce stream curriculum.

In order to ace the subject the student needs to have conceptual clarity. CBSE has designed the syllabus for class 11 Business Studies so as to provide students with a basic understanding of the various principles prevalent in the Business organizations as well as their interaction with their corresponding environment.   

Case Study Questions in class 11 (Business Studies)

Case-based questions have always been an integral part of the Business Studies question paper for many years in the past. The case studies have always been considered to be challenging for the students, for such questions demand the application of their knowledge of the fundamental business concepts and principles. Last year i.e-  2021 CBSE introduced a few changes in the Business Studies question paper pattern to enhance and develop analytical and reasoning skills among students.

It was decided that the questions would be based on real-life scenarios encountered by the students.CBSE not only changed the way case-based questions were formulated but also incremented their weightage in the Business Studies question paper. The sole purpose of increasing the weightage of case-based questions in the class 11 curriculum by CBSE was to drift from rote learning to competency and situation-based learning.

What is a case study question? (Business Studies)

In Business Studies, a case study is more like a real-world test of how the implementation works. It is majorly a report of an organization’s implementation of anything, such as a practice,a product, a system, or a service. The questions would be based on the NCERT textbook for class 11 Business Studies. Case-based questions will definitely carry a substantial weightage in the class 11 Business Studies question paper. questions.

A hypothetical text will be provided on the basis of which the student is expected to solve the given case-based question asked in the Business Studies class 11 exam. Initially, the newly introduced case-based questions appeared to be confusing for both the students and the teachers. Perhaps, they were reluctant to experiment with something new but now a lot more clarity is there that has made the question paper quite student-friendly.

Case study questions could be based on any chapter or concept present in the NCERT textbook. Thus, it is expected from the students to thoroughly revise and memorize the key business fundamentals. 

Business Studies syllabus of class 11 CBSE   

The entire Business Studies course is divided into 2 parts:

• Part A, Foundation of Business
• Part B, Finance and Trade

The class 11 Business Studies exam is for a total of 100 marks, 80 marks are for the theory and the remaining 20 for the project. Most of the questions are based on the exercises from the NCERT textbook. It is recommended to rigorously go through the contents of the book. A single textbook has been published by NCERT for Class 11 Business studies. There are a total of 10 chapters in this book divided into 2 parts. 

CBSE Class – 11

Business Studies (Code No. 054)

Theory: 80 Marks Time: 3 Hours Project: 20 Marks

Case Study Passage (Business Studies class)

As part of these questions, the students would be provided with a hypothetical situation or text, based on which analytical questions will have to be answered by them. It is a must for the students to read the passage in depth before attempting the questions. In the coming examination cycle (2022-23), case-based questions have a weightage of around 30%. These questions can be based on each chapter in the NCERT book for Business Studies, grade 11.

Students must prepare well for the case-based questions before appearing for their Business Studies exam as these questions demand complete knowledge of the various concepts in their syllabus. CBSE plans to increase the weightage of such questions in the upcoming years.

Sample case-based Questions in Business Studies

Business Studies as a subject provides a way of perceiving and interacting with the business ecosystem. It is a core subject of the commerce stream that is purely theoretical and relevantly easier than the other compulsory subjects of the stream. Class 11 Business Studies syllabus is closely related to trade and commerce. The subject cannot be ignored as it is the foundation of many concepts and theories which are studied at an advanced level in class 12.

The case-based questions asked in the CBSE Business Studies question paper for class 11 are of two types:

As per the latest circular issued by CBSE on Assessment and Evaluation practices of the board for the session 2022-23, CBSE has clearly mentioned that competency-based questions including case studies will be different from subjective questions.  

The questions can also be categorized on their difficulty level:

• Direct: such questions can be easily solved. Their answer is visible in the given passage itself.
• Indirect/ Analytical: such questions are confusing and tricky. These can be solved by the application of the theory or principle that is highlighted in the provided text. 

How To Prepare For Case-based Questions? (Business Studies grade 11)

Students need to prepare well for the case-based questions before appearing for their class 11 Business Studies exam. Here are some tips which will help the student to solve the case-based questions at ease:

• Read the provided text carefully
• Try to comprehend the situation and focus on the question asked
• Analyze and carefully answer the question asked
• In general, the passage given would be lengthy in Business Studies case-based questions but their solutions are comparatively short and simple
• One can significantly save time if they follow a reversal pattern, that is going through the questions before reading the comprehensive case study passage.
• Answer in a concise manner
• One should concentrate on solidifying key fundamental principles/theories
• Go through the NCERT textbook in depth. The language used is crisp and simple.
• While providing solutions to the case-based question, pick the keyword/keyline based on which you are driving insights.

 In order to excel in the Business Studies class 11 exam, one needs to ignore the shortcut techniques and get to read the NCERT textbook rigorously. Case studies can be easily solved if your key fundamentals are strong and clear. The best part of having these questions is that the asked question itself projects a hint of its answer. These simple points if kept in mind will definitely help the students to fetch good marks in case study questions, class 11 Business Studies. 

Case study question examples in Business Studies

Here a re some given case study questions for CBSE class 11 Business Studies. If you wish to get more case study questions and other study material, download the myCBSEguide app now. You can also access it through our student dashboard.

Business Studies Case Study 1

Read the hypothetical text given and answer the following questions:

Manish, Rahul and Madhav live in the same locality. They used to meet and discuss their ideas. After discussing the recent fire breakout in their area, they decided to take fire insurance for their house or work area. Manish gets his house insured against fire for ₹1 lakh and during the policy period, his house gets damaged due to fire and the actual loss amounts to ₹2.5 lakh. The insurance company acquired the burning material and approved his claim. Rahul gets his godown insured against fire for ₹1 lakh but does not take enough precautions to minimize the chances of fire like installing fire extinguishers in the factory. During the policy, a fire takes place in his godown and he does not take any preventive steps like throwing water and calling the employees from the fire fighting department to control the fire. He suffered a loss of ₹1,20,000. Madhav took a fire insurance policy of ₹20 lakh for his factory at an annual payment of ₹24,000. In order to reduce the annual premium, he did not disclose that highly explosive chemicals are being manufactured in his factory. Due to a fire, his factory gets severely damaged. The insurance company refused to make payment for the claim as it became aware of the highly explosive chemicals.

How much can Manish claim from the insurance company?

• None of the above

How much compensation can Rahul get from the insurance company?

Which principle is violated in the case of Rahul?

• Insurable Interest
• Utmost Good Faith

How much amount is the insurance company liable to pay to Madhav if he files a case against it?

• Insufficient information

Which principle of Insurance is violated by Madhav?

• Insurable interest
• Subrogation
• Proximate Cause

The insurance company acquired the burnt material and approved his claim. Which principle of Insurance is highlighted in the given statement.

• (a) Mitigation
• (a) Utmost Good Faith
• (d) Subrogation

Business Studies Case Study 2

 Sarthak Electronics Ltd. has a loss of Rs 15,00,000 to pay. They are short of funds so they are trying to find means to arrange funds. Their manager suggested a claim from the insurance company against stock lost due to fire in the warehouse. He actually meant that they can put their warehouse on fire and claim from insurance companies against stock insured. They will use the claim money to pay the loan.

• Will the company receive a claim if the surveyor from the insurance company comes to know the real cause of fire?
• Write any two Values which the company ignores while planning to arrange money from false claims.
• State any three elements of fire insurance

Business Studies Case Study 3

OLX and qickr are examples of well-known websites used to conduct business. Tarasha’s sofa set got spoiled in the rain. Her friend suggested that she should change the fabric so that it looks new and put it for sale on Olx. Tarasha followed her friend’s advice and got her sofa repaired so that it looked better and uploaded nicely clicked pictures on the website without disclosing the fact that it was damaged from the inside. She found a buyer and sold it for Rs 10,000. After five days the buyer found the real state of the sofa set and called Tarasha but she did not answer any of the calls.

• identify the type of business highlighted in the above case.
• Identify any two values which are overlooked by Tarasha.
• Explain any two benefits and limitations of e-business.

Advantages of case study questions in Business Studies

Class 11 Business Studies syllabus is not very vast but has to be focussed upon as it forms the base for your 12th grade Business Studies syllabus. Students are supposed to prepare themselves thoroughly from the NCERT textbook. The Case-based questions prominently focus on the real and current scenarios of the Business world. Approximately 30% of the question paper will comprise case study questions that demand high-order thinking and reasoning skills from the students. The students ought to practice class 11 Business Studies case-based questions from the various options available to them, so as to excel in the subject.

• Enhance the qualitative and quantitative analysis skills of students
• Provides an in-depth understanding of the key Business theories/concepts
• Inculcate intellectual capabilities in students
• Help students retain knowledge for a longer period of time
• The questions would help to discard the concept of rote learning
• Case studies promote and strengthen practical learning.

“Failure is success if you learn from it”

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CBSE Class 11 Business Studies Revision Notes Chapter 2

Home » CBSE » CBSE Class 11 Business Studies Revision Notes Chapter 2

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CBSE Class 11 Business Studies Revision Notes Chapter 2 – Forms of Business Organisation

Class 11 Business Studies Chapter 2 introduces students to the different forms of business organisations including Sole proprietorships, Joint Hindu family businesses, Partnerships, and Cooperative societies and Joint stock companies. Students further get to know about the motivation behind each of these business organisations, their characteristics, pros and cons and more.

Quick Links

Extramarks offers summarised Revision Notes for this chapter that cover all the important concepts included in this chapter in a clear and concise manner. Students will find these notes useful in their preparations and last-minute revisions. These notes can be accessed for free from the Extramarks website.

Access Class 11 Business Studies Chapter 2 – Forms Of Business Organisation Notes

The major topics covered in the chapter have been listed below for students’ reference.

Forms of Business Organisation

There are different forms of business organisation which are discussed in this chapter. These include the following: 

• Sole proprietorship
• Joint Hindu family business

Partnership

• Joint-stock Company
• Cooperative Societies

Sole Proprietorship

It is a form of organisation owned, managed and controlled by an individual (also known as a sole proprietor) who is responsible for bearing all the risk and receiving all the profit.

• The sole proprietor can establish and close the business without any legal formalities.
• The liability of the sole proprietor is unlimited.
• Being the sole owner, the sole proprietor bears all the risk and receives all the profits.
• All the decisions are taken and implemented in the organisation by the owner.
• Owners and businesses have no separate entity and are considered one in the eyes of the law.
• Even in case of a lack of business continuity, the business can continue until the owner wants.
• Prompt decision-making as all the decisions are to be taken by the owner.
• Being a sole owner, it is easy to maintain business secrecy.
• The owner enjoys all the profits as there is no one to share profits.
• A successful business provides satisfaction to the owner and a sense of achievement.
• No legal formalities are required for a business’s formation and closure, making it easy to start and end the business.  

Disadvantages

• Due to limited resources, a business can be funded from the owner’s savings or money borrowed from friends or relatives.
• The business’s continuity depends on the owner’s health and state of mind.
• If the business fails to repay debts, the sole proprietor’s personal assets are at risk. 
• One person may not possess the ability to manage all the functions. 

Joint Hindu Family Business

In this form of business organisation, the business is owned and managed by the members of an undivided Hindu family, with the possibility of three successive generations as members of the business.

• The business is formed with at least two members of a Hindu Undivided Family having ancestral property. The Hindu Succession Act, 1956, governs it.
• Except for Karta, all the family members have limited liability up to their share in the business property.
• Karta has the right to control all the activities in the business organisation.
• The business can be discontinued based on the consent of all the members of the family.
• Membership in the organisation is by birth.

Advantages 

• Karta has complete control of the business, thus effective decision-making is ensured.
• The business continues till all the members wish to continue, and control is transferred to the next elder member in case of the death of ‘Karta’.
• Members of the family enjoy liability limited to their share in the business party.
• All the work is done with the common objective of growth as the family members have a sense of belongingness and loyalty.

Limitations

• Due to limited financial resources, businesses can be funded mainly from ancestral property.
• The personal property of ‘Karta’ is at risk as he has unlimited liability.
• Due to the dominance of Karta, conflict may arise due to differences in opinion among members and ‘Karta’.
• Karta may not have knowledge and expertise of all the functions performed in the business.

As per the partnership Act 1932, the partnership is a relation with people who agreed to share the profits of business that is carried on by all or one of them acting for all.

• The formation of a business is based on the provisions of the partnership Act 1932. 
• The liability of the partners in this form of organisation is unlimited. 
• All the partners share the risk that occurred in the business.
• All decisions are made with the consent of all partners, and each partner is responsible for operating the firm.
• The continuity of the business is determined by the partnership deed signed by the partners at the time the partnership is formed.
• Minimum 2 and maximum 50 members [as per the Companies (Miscellaneous) Rules 2014}, or maximum could be 100 ( according to Companies Act, 2013).
• Each partner is the owner and agent of the firm and agent to other partners.
• As the registration is voluntary, businesses can be formed and dissolved with the approval of all partners.
• All decisions are made by consent partners, who take on responsibilities based on their competence.
• All the partners contribute funds that enhance the scope for large-scale company operations.
• All the partners bear the risks and responsibilities of the business
• It is easy to maintain confidential business information as there is no need to submit financial results.
• Each partner has an unlimited liability that is extended to their personal property.
• Due to the restriction of the number of partners, there is limited availability of finance. 
• Due to differences in opinion, there are high chances of conflicts among partners. 
• Any conflict between partners or the death of a partner may bring the business to an end.
• Due to a lack of public confidence and availability of financial reports, it is difficult for an outsider to ascertain the true financial position of the business. 

Types of Partners

• Secret Partner: This partner contributes to the profit and losses of the firm and participates in managerial activities secretly. 
• Active Partner : This partner has unlimited liability. They also contribute to the capital, share profit and loss, and participate in management. 
• Sleeping or dormant partner: This partner does not participate in the management. They contribute capital and share profit and loss. They also have unlimited liability. 
• Nominal Partner: Partner who does not contribute capital or share profit and loss but permits the partnership firm to portray them as partners.
• Partner by holding out: An individual who is not a partner but is portrayed as a partner by other partners of the partnership company and has unlimited liability.
• Partner by estoppel: An individual who is not a partner but projects themselves as partners to an outsider and has unlimited liability.

Minor as a Partner: The partner who is below 18 years of age can be admitted as a partner with the mutual consent of all the partners but, in the eyes of the law, is not a partner.  

Types of Partnerships

Partnerships are categorised on the basis of liability and duration.

Classification of partnership on the basis of duration

• Particular Partnership: This type of partnership is formed to perform a particular task over a particular period of time. This partnership is ended once the task gets completed. 
• Partnership at will: This type of partnership depends on the partners until they are eager to continue. 

Classification of partnership on the basis of liability

• Limited Partnership: In this partnership, only one member has unlimited liability while the rest of the members have limited liability.
• General Partnership: In this type of partnership, all the partners have joint and unlimited liability. 

Partnership Deed

It is defined as a written document where all the terms and conditions related to the partnership are mentioned. It has the following clauses: 

• Name of firm
• Nature of firm
• Duration of partnership
• Duties and obligations of partners
• Valuation of assets
• Interest on capital and interest on drawings
• Profit-loss sharing ratio
• Salaries and withdrawals of the partners.
• Preparation of accounts and their auditing.
• Procedure for dissolution of the firm
• Method of solving disputes.

Registration

In the partnership firm, getting the company registered is optional with the registrar regarding in this form the company was established. 

Process of getting registered

• Submitting of application in the prescribed form to the Registrar of Firms.
• Fee deposition with the Registrar.
• Receiving certificate of registration after the Registrar is satisfied.

Consequences of not getting registered

• If the company is not registered, the partner has no right to file a complaint or sue any of the partners or the partnership firm. 
• The firm cannot sue third parties.
• The firm cannot file a case against one or more partners of the firm

Cooperative Society

An organisation of volunteers working for a mutual goal with the purpose of protecting members’ economic and social interests. It must be registered under the Cooperative Societies Act, 1912.

• Any individual, regardless of caste, gender, or religion, who has a similar interest is free to join or quit a cooperative society at any moment.
• As per the capital contribution, cooperative society members have limited liability. 
• All decision-making authority rests with an elected managing committee chosen by members under the one-man-one-vote principle.
• A cooperative society has separate identity status distinct from its members, and the registration of such a society is also mandatory.
• The service motive of a cooperative society is to provide mutual help to the team members.
• Each member has equal voting rights and can elect managing committee members.
• The liability of members is limited to their capital contribution.
• Cooperative societies continue to exist despite their members’ death, bankruptcy or insanity.
• A cooperative society does not require legal formalities for its formation. 
• The government provides support to societies in the form of lower taxes, interest rates and subsidies.
• The members of the social work voluntarily, which helps in reducing costs.
• Societies must adhere to the government’s laws and regulations and submit society audited financial reports. However, such government interference impacts such a society’s freedom of work. 
• Members’ capital contributions are the only funding source, and low dividends hinder members from contributing to society.
• Volunteer members may lack the required competence and skills, resulting in inefficient operations and management.
• Maintaining secrecy is difficult as members provide all information about the society’s operations at the meeting.
• Differences of opinion as a result of individual interest over welfare may lead to conflicts amongst members.

Types of Cooperative Societies

• Producers cooperative societies: In this type of cooperative society, producers’ interests are protected by societies that provide high-quality, low-cost raw materials and other inputs.
• Farmer’s cooperative societies: These societies are established to provide farmers with better inputs at affordable rates to improve productivity.
• Consumer cooperative societies: To protect the interests of the consumers, the society provides high-quality products and services at economical rates. 
• Marketing cooperative societies: In these societies, services are provided related to the marketing of the products by small producers. 
• Cooperative housing societies: These societies are formed to construct houses for their members at an economical rate. 
• Credit cooperative societies: Such societies are established to offer financial assistance to their members at reasonable terms. 

Joint Stock Company

The Companies Act, 2013 defines “A company as an artificial person having a separate legal entity, perpetual succession and a common seal.”

Features of a Joint Stock Company

• A company is established with the law and legal status, yet it does not function like humans and acts as an artificial person. In the name of the corporation, the board of directors conducts all the business activities. 
• A company has its separate legal identity distinct from its owner with the incorporation of a company.
• The company is established by fulfilling all the legal formalities according to the Companies Act, 2013.
• A company is created by law and can only be wound up by law. The existence of the company is not affected by the status of members.
• The Board of Directors controls and manages the company’s business affairs. 
• A company has limited liability only to the extent of the capital contribution. 
• A company cannot have its own signature because it is an artificial legal person. As a result, the common seal serves as the firm’s official signature. To be legally binding, all official papers must bear the same seal.
• All the shareholders of the company bear the risk of loss in proportion to their investment in the company.
• All the shareholders have limited liability for their investment in the firm. Hence, there is no risk of losing personal assets.
• Shares can be converted into cash or can be easily sold in the market. 
• The company’s existence continues and is not affected by the status of the shareholders. 
• Companies can raise public funds and borrow from financial institutions or banks. 
• Professional management as well as specialised individuals are required in large-scale operations. 
• The formation of the company is time-consuming and lengthy as the company needs to fulfil the documentation and legal formalities. 
• There is no confidentiality maintained as all the information is disclosed to the public . 
• As professionals and not owners who manage business affairs, there is a lack of personal contact with the customers and employees. 
• Due to numerous rules and regulations, there is no freedom to work, which consumes time, effort and money. 
• There is a delay in decision-making, as the decision needs to follow a set of hierarchies. 
• The decisions may get influenced due to the personal interest of the directors, as the stakeholders have minimum control over running a business. 
• Management finds it challenging to satisfy everyone because many stakeholders have conflicting interests.

Types of Companies 

Private company.

• A company must have a minimum of 2 or a maximum of 200 members.
• Restricted right to transfer shares.
• Funds cannot be generated from the general public.
• Uses ‘Private Limited’ after the company name.

Public Company

• Minimum 7 members with no limit on maximum members.
• Free to transfer shares. 
• Issue shares to the general public.
• Uses ‘Public Limited’ after the company name.

Difference between Public and Private Company

Choice of Form of Business Organisation

• The owner’s death and insolvency influence sole proprietorship and partnership continuity, whereas companies, cooperative societies and Hindu undivided families enjoy eternal existence.
• Partnership and sole proprietor have unlimited liability. On the other hand, companies and cooperative societies have limited liability. 
• Starting a sole proprietorship with minimal expense and legal procedures is simple. On the other hand, establishing a company is a complex task with prolonged legal requirements. However, a partnership has the advantage of fewer legal procedures with lower costs.
• In the case of a small-scale operation, a partnership or sole proprietorship can be chosen. On the other hand, in the case of large-scale operations, the company form is more suitable. 
• It is difficult for the owner of a sole proprietorship to be knowledgeable in all operations, but in other forms of businesses, work division is allowed, which leads to effective decision-making.
• Sole proprietorship and partnership forms of business can be chosen for trading and services. On the other hand, a company form of organisation can be suitable for manufacturing. 
• If the owner desires complete control, a sole proprietorship may be preferable, but if the owner is willing to share power, he might choose a partnership or a company form of organisation.

Introduction to Class 11 Forms of Business Organization

In Chapter 2 Business Studies Class 11 notes , students will study sole proprietorship, joint Hindu family, partnership, cooperative society and joint-stock business. Students will learn about the features, advantages as well as disadvantages of each form of organisation in these revision notes provided by the expert professionals of Extramarks. Each of these organisations is contrasted with the others so that students may see how each form of organisation differs from the others. The forms of organisations have diverse characteristics and are unique from one another, and the Business Studies Class 11 Chapter 2 notes have all of the pertinent information.

Types of Organisations

• Joint Hindu Family: In this form of organisation, members are only allowed to get membership if they were born in the family. This is a family-owned firm, with the heirs following in their father’s footsteps. The joint Hindu Family follows strict values and discipline that cannot be broken. Karta is the name of the family’s head. Only two people and ancestral property are required for this form of organisation. The partners’ responsibility is limited solely by their share amount.
• Sole Proprietorship : In this kind of organisation, the only owner and beneficiary of all the profits and losses made by the company, as well as the bearer of all risks, is the sole proprietor or the sole owner of the company. No distinct rules regulate sole proprietorship, and the owner is personally accountable for all of their actions. The owner is entirely accountable for both ownership and the running of the firm. In this form of organisation, the owner is not required to communicate with anybody before making a decision. They are able to maintain business secrecy. 
• Partnership: It refers to the relationship between partners who have agreed to share the company’s profits and losses. The partnership has to be governed according to The Indian Partnership Act of 1932. The partners of the company have unlimited liability and are responsible for all decisions made. Profits are divided among the partners in an agreed-upon ratio. This Partnership may come to an end due to a lack of continuity or death. Partners can manage various business functions based on their areas of expertise. All of the partners contribute to the capital.
• Cooperative Society: This is a voluntary association that looks after the well-being of its members. This form of organisation monitors the economic interests of its members in order to avoid exploitation by middlemen. This society may enter into contracts and can sue and be sued. The liability of society members is limited to the amount they contribute to the capital. The principle of one man and one vote is no longer applicable because each member has equal voting rights.
• Joint Stock Company: This form of organisation is established by the law and is independent of its members. The company becomes a separate legal entity, and the law no longer considers the business and its owners to be one. The company’s establishment is time-consuming, costly and intricate. The shareholders are accountable for the extent of their unpaid shares.
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FAQs (Frequently Asked Questions)

1. what is a business enterprise.

A business enterprise is defined as a venture to any endeavour in which the primary goal is profit rather than just employing oneself or others. It entails the responsibility of providing goods and services that include industrial, financial and commercial aspects.

2. Who are Coparceners?

Other than the Karta, Coparceners are members of a Hindu Undivided Family company. It must include propositus and three lineal descendants. They must have the same ownership rights over their ancestral property.

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Home » 11th Class » NCERT Solutions for Class 11 Business Studies Chapter 2 Forms of Business Organisation | Question Answer PDF

NCERT Solutions for Class 11 Business Studies Chapter 2 Forms of Business Organisation | Question Answer PDF

NCERT Solutions for Class 11 Business Studies Chapter 2 Forms of Business Organisation has been published by Aglasem. You can now download the Class 11 Business Studies Ch 2 Questions and Answers PDF here. This NCERT Solutions for Class 11 Business Studies contains answers of all questions asked in Chapter 2 in textbook, Business Studies . Therefore you can refer it to solve Forms of Business Organisation exercise questions and learn more about the topic.

NCERT Solutions for Class 11 Business Studies Chapter 2 Forms of Business Organisation

Class – Class 11 Subject – Business Studies Chapter – Ch 2 Chapter Name – Forms of Business Organisation Book – Business Studies Study Material – NCERT Solutions

NCERT Solutions for Class 11 Business Studies Chapter 2 PDF

While you can read NCERT Solutions for Class 11 Business Studies Ch 2 for all exercises here on aglasem. You can also download this NCERT Solutions PDF to refer ncer question answer at anytime when you study Forms of Business Organisation. Here it is.

NCERT Solutions for Class 11 Business Studies Chapter 2 PDF Download Link – Click Here to Download Solutions PDF

How to download NCERT Solutions for Class 11 Business Studies Chapter 2 PDF?

You can download the complete NCERT solutions for chapter 2 of this NCERT Book i.e. Business Studies with following steps.

• First search NCERT Solutions for Class 11 Business Studies Ch 2 PDF aglasem and come to this page.
• Now you will see the exercise questions answers of Forms of Business Organisation and download pdf link on it.
• Click the Download PDF link to obtain the Forms of Business Organisation questions with answers document.
• NCERT Solutions for Class 11 Business Studies

There are more chapters to study besides Forms of Business Organisation in this subject. So here are NCERT solutions for all topics of Business Studies taught in 11th class here at aglasem.

• Chapter 1 Business, Trade and Commerce
• Chapter 2 Forms of Business Organisation
• Chapter 3 Private, Public and Global Enterprises
• Chapter 4 Business Services
• Chapter 5 Emerging Modes of Business
• Chapter 6 Social Responsibilities of Business and Business Ethics
• Chapter 7 Formation of a Company
• Chapter 8 Sources of Business Finance
• Chapter 9 MSME and Business Entrepreneurship
• Chapter 10 Internal Trade
• Chapter 11 International Business

NCERT Solutions for Class 11

Just like you got Business Studies Ch 2 solutions here. You can see exercise questions answers of other subjects and their topics too on aglasem. Here are NCERT solutions for all subjects of 11th standard NCERT books.

• NCERT Solutions for Class 11 Accountancy
• NCERT Solutions for Class 11 Biology
• NCERT Solutions for Class 11 Chemistry
• NCERT Solutions for Class 11 Economics
• NCERT Solutions for Class 11 English
• NCERT Solutions for Class 11 Geography
• NCERT Solutions for Class 11 Hindi
• NCERT Solutions for Class 11 History
• NCERT Solutions for Class 11 Maths
• NCERT Solutions for Class 11 Physics
• NCERT Solutions for Class 11 Political Science
• NCERT Solutions for Class 11 Psychology
• NCERT Solutions for Class 11 Sociology

NCERT Solutions for Class 11 Business Studies Chapter 2 – An Overview

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NCERT Solutions for Class 6, 7, 8, 9, 10, 11 and 12

NCERT Solutions for Class 11 Business Studies

NCERT Solutions for Business Studies Subject for Class 11 Students are given here. The 11th grade is an important milestone because it lays the foundation for your final board exams the next year. For students who plan to study commerce, Business Studies is an integral part of your syllabus.

Business studies require you to memorise a lot of business laws and trade sanctions. At LearnCBSE.in, we provide the Class 11 Business Studies NCERT Solutions. You can easily download the solutions and start solving questions to make it easier for yourself!

• Chapter 1 Nature and Purpose of Business
• Chapter 2 Forms of Business Organisation
• Chapter 3 Private, Public and Global Enterprises
• Chapter 4 Business Services
• Chapter 5 Emerging Modes of Business
• Chapter 6 Social Responsibilities of Business and Business Ethics
• Chapter 7 Formation of a Company
• Chapter 8 Sources of Business Finance
• Chapter 9 Small Business
• Chapter 10 Internal Trade
• Chapter 11 International Business-I
• Chapter 12 International Business-II

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NCERT Solutions for Class 11 Business Studies 2024-25

• NCERT Solutions
• Business Studies

NCERT Class 11 Business Studies Questions and Answers - FREE PDF Download

NCERT Solutions for Class 11 at Vedantu provides students with exact and accurate answers to in-text questions. Business Studies Class 11 helps students understand the fundamental concepts of business, such as financial management, business organisations, and the importance of trade and commerce. 

They can also cross-check their answers and learn which points can be added to increase their exam score. Students must put in significant work and preparation throughout the year to achieve this. They should be familiar with all of the chapters in Class 11 Business Studies. So, along with the NCERT Solutions, you can also check the CBSE Class 11 Social Business Studies Syllabus.

NCERT Class 11 Business Studies Solutions Chapter-wise Links - Download the FREE PDF

The following Chapter name has been modified from NCERT Class 11 Business Studies Solutions for the Academic year 2024-25:

Chapter 9 - MSME and Business Entrepreneurship (Previously, it was ‘Small Business’)

Below is the pictorial representation of the Business Studies NCERT Class 11 Syllabus for better understanding:

Quick Overview of Business Studies NCERT Class 11 Solutions

The  Business Studies NCERT Class 11 Solutions provides detailed solutions and explanations to every question in the textbook. 

These concepts handle key topics such as financial management, business organisations, and the importance of trade and commerce. 

Business Studies NCERT Class 11 chapters are designed to help students understand complicated business concepts through simple explanations. 

Students can use these solutions to strengthen their understanding of the subject, prepare for exams, and establish a strong foundation in the field of business and entrepreneurship.

Students can download the FREE PDFs to have quick access to all the solutions.

Business Studies NCERT Class 11: Chapter Details, Concepts, and Important Links

Chapter 1: business, trade and commerce.

This chapter is introductory to the Business Studies subject, where students become familiar with business, trade, and commerce concepts, what those three entail, and their features.

It discusses banking systems, intermediaries, merchant corporations, and the main trade centres. 

It also touches upon the industry.

Important Topics Covered in Chapter 1: Business, Trade and Commerce

Role of Business in the Development of the Economy

Characteristics of Business Activities 

Classification of Business Activities

Objectives of Business

Important Study Material Links for Chapter 1:  Business, Trade and Commerce

Chapter 2: Forms of Business Organisation

The chapters primarily discuss the varied nature of a business organisation, and students can appreciate how one differs from the other. 

Other concepts from this chapter include proprietorship and partnership, types of companies, and a brief mention of joint-stock companies. 

This is a very important chapter in learning about the stock market.

Important Topics Covered in Chapter 2: Forms of Business Organisation

Sole proprietorship

Partnership and its types

Cooperative Society

Joint Stock Company

Important Study Material Links for Chapter 2: Forms of Business Organisation

Chapter 3: Private, Public and Global Enterprises

The chapter discusses the nature of ownership patterns or holding structures in private, public, and global enterprises. 

An introduction to public and government companies, the role of public sectors, and joint ventures is provided.

Important Topics Covered in Chapter 3: Private, Public and Global Enterprises

Private Sector and Public Sector

Forms of organising enterprises

Changing rules of Public Sectors

Global Enterprises

Joint Ventures

Important Study Material Links for Chapter 3: Private, Public and Global Enterprises

Chapter 4: Business Services

Chapter 4 encompasses the different types of services businesses extend and the broad categorisation. 

Some of the topics covered include banks and the function of commercial banks.

Also, e-banking is all about Insurance, postal and telecom, warehouse services and transport.

Important Topics Covered in Chapter 4: Business Services  

Nature of Services

Types of Services

Types of Banks

Important Study Material Links for Chapter 4: Business Services 

Chapter 5: Emerging Modes of Business

Changing business scenarios has brought a paradigm shift to newer business models. 

Students get a glimpse of a few emerging business models in this chapter. 

This chapter also talks in detail about e-business, its advantages and disadvantages, the concept of outsourcing, B2B, B2C, and C2C commerce, and how they work.

Important Topics Covered in Chapter 5: Emerging Modes of Business

Scope of e-Business

Benefits of e-Business

Limitations of e-Business

Important Study Material Links for Chapter 5: Emerging Modes of Business

Chapter 6: Social Responsibilities of Business and Business Ethics

Chapter 6 introduces students to corporate social responsibilities and business entities' role in social engineering. 

This chapter is very important as it discusses the different kinds of social responsibilities.

It deals with the cases against it, pollution caused by businesses, ethics in business, and its elements.

Important Topics Covered in Chapter 6: Social Responsibilities of Business and Business Ethics

Concept of Social Responsibility

Kinds of Social Responsibility

Business and Environmental Protection

Causes of Pollution

Important Study Material Links for Chapter 6: Social Responsibilities of Business and Business Ethics

Chapter 7: Formation of a Company

Details relating to the company's incorporation have been laid down in Chapter 7. 

This chapter also includes the forming of a company, its promotion, the concept of incorporation, and the effects of its certification.

Important Topics Covered in Chapter 7: Formation of a Company

Promotion of a Company

Position of Promoters

Incorporation

Effect of the Certificate of Incorporation

Important Study Material Links for Chapter 7: Formation of a Company

Chapter 8: Sources of Business Finance

Different financing options are discussed, which range from a conventional source of funds, i.e., banks, to that of investors. 

It also introduces period basis, generation basis, and the various sources of finance. 

This includes credit, lease, public deposits, and factoring.

Important Topics Covered in Chapter 8: Sources of Business Finance

Meaning, Nature, and Significance of Business Finance

Classification of Sources of Funds

Sources of Finance

Important Study Material Links for Chapter 8: Sources of Business Finance

Chapter 9: MSME and Business Entrepreneurship 

The markers and basic features of small businesses are elucidated in Chapter 9. 

This chapter is very important as it covers many topics, including the importance of small businesses in rural and urban areas.

The problems that could arise are how the government helps rural projects, such as MSME.

Important Topics Covered in Chapter 9: MSME and Business Entrepreneurship 

Micro, Small and Medium Enterprises

Role of MSME

Problems Associated With MSME

MSME and Entrepreneurship Development

Intellectual Property Rights (IPR)

Types of IPs

Important Study Material Links for Chapter 9: MSME and Business Entrepreneurship  

Chapter 10: Internal Trade

Students are introduced to the concept of trade within the country and its various characteristics. 

The students also learn about retail trade, itinerants, fixed and large-scale retailers, different types of stores and shops, markets, and even vending machines.

Important Topics Covered in Chapter 10: Internal Trade

Wholesale Trade

Services of Wholesalers

Retail Trade

Types of Retailing Trade

Fixed shop—Large stores

Important Study Material Links for Chapter 10: Internal Trade

Chapter 11: International Business 

Chapter 11 touches upon some elementary understanding of international business but does not detail it. 

This last chapter discusses the scope and benefits of foreign ventures, joint ventures in an international setup, and India in international trade and business, including the import and export of goods and services.

Important Topics Covered in Chapter 11: International Business 

Reason for International Business

Benefits of International Business

Modes of Entry into International Business

Licensing and Franchising

Export-Import Procedures and Documentation

Important Study Material Links for Chapter 11: International Business 

Benefits of Referring to Vedantu’s NCERT Solutions for Class 11th Business Studies

Vedantu's NCERT Solutions for Class 11th Business Studies are crucial and provide benefits:

Gain a clear understanding of core business concepts like types of businesses, marketing strategies, and financial management with Class 11th Business Studies, ensuring a clear understanding.

 Practice answering questions with confidence. Vedantu's solutions for business studies class 11 CBSE follow the NCERT curriculum and provide step-by-step explanations, helping you easily prepare for exams.

Vedantu's solutions offer insightful explanations and real-life examples, making learning about business engaging and relevant for business studies class 11 CBSE.

Vedantu's solutions are a time-saving resource that lets you focus on understanding, not just finding answers. 

Vedantu might offer additional resources like study materials or interactive exercises alongside the solutions for business studies class 11 CBSE, making learning even more fun and effective.

In conclusion, NCERT Solutions for   Commerce Business Studies Class 11 is a valuable resource for students to simplify their understanding of business concepts. By working through the solutions alongside the NCERT textbook, students can solidify their learning of fundamental business principles like forms of organisation, finance, marketing, and social responsibility.

Related Important Links for Commerce Business Studies Class 11

Along with this, students can also download additional study materials provided by Vedantu for Commerce Business Studies Class 11–

FAQs on NCERT Solutions for Class 11 Business Studies 2024-25

1. What is an Effective Method of Preparing for 11th Business Studies NCERT?

For students set out to prepare Class 11 BST, the most methodical approach would be to proceed in a sequential manner, as opposed to preparing in accordance with convenience. In such a manner, a proper flow remains.

For example, in the first chapter of NCERT solutions of Class 11 Business Studies, the basic ideas related to business, its inception, its operations are touched upon. The complex concepts follow eventually, and finally; international trade is discussed. It is inadvisable to start with the final chapter in the beginning.

2. How Does Class 11 Business Studies NCERT PDF Help in Preparing the Subject?

Apart from the fact that subject experts have framed the Business Studies Class 11 NCERT solutions, the presentation of the same makes it extremely easy for students to prepare for the subject.

Not only do the class 11 business studies NCERT solutions use extremely lucid language but also strictly adhere to the CBSE syllabus. Students will be able to comprehend concepts very easily. They will also be able to identify if they are lagging in specific areas.

3. Specify the characteristics of fixed shop retailers according to Chapter 10 of Business Studies Class 11 NCERT Solutions.

Fixed shop retailers maintain a permanent place for their company. They do not move from place to place like itinerant traders. Since they have the greatest resources and operate at a large scale level, they provide greater services to the people and maintain a trustworthy relationship with their customers. Download the PDF of NCERT Solutions from Vedantu free of cost and prepare for your exams for Chapter 10 of Business Studies of Class 11. Practice the given questions regularly to secure a perfect score in the exam.

4. According to Chapter 10 of Business Studies Class 11 Solutions, wholesalers providing warehousing facilities serve what purpose?

The wholesalers provide warehousing space for finished products. They acknowledge the risk of theft and damage by taking full responsibility for the finished goods. Thus, reducing the burden of the manufacturers. Students can make use of the NCERT Solutions provided by the Vedantu to get well versed in Chapter 10 of Business Studies of Class 11. These solutions are prepared by a group of highly experienced staff at Vedantu. Download the NCERT solution at Vedantu for free of cost.

5. What is internal trade according to Chapter 10 of Business Studies Class 11 Solutions?

Internal trade is a process of trading that happens with the boundaries of a nation. They buy and sell the products within the country. Vedantu’s website provides a detailed description of internal trade for Class 11 with solved problems for the students to revise.  Use these solutions to get more insights into Chapter 10 of Business Studies of Class 11. Since the NCERT Solutions are prepared by the subject experts, students will be provided accurate and authentic information. 

6. What are the types of internal trade according to Chapter 10 of Business Studies Class 11 Solutions?

Internal trade is broadly classified into two types:

Wholesale trade 

Retail trade 

The Vedantu with the help of qualified experts prepared these NCERT Solutions for the benefit of the students. Now they can learn from the comfort of their homes and prepare for their exams. These solutions will assist the students in revision and help them secure a perfect score in the exams.

7. Is Class 11 Business Studies hard?

For some students, Class 11 Business Studies can be challenging, especially if it's a new subject. The workload can seem heavy, and some concepts might require extra learning. However, with dedication and the right approach, it's manageable.

8. How do you score full marks in business studies class 11?

While aiming for a perfect score is great, focus on understanding the concepts thoroughly. Here are some tips:

Stay consistent: Regularly revise and practice questions.

Clear your doubts: Don't hesitate to ask your teacher or classmates for help.

Practice answer writing: Use relevant terms and structure your answers well.

Solve previous year's question papers: This helps identify important topics and exam patterns.

9. How to revise business studies?

Make concise notes: Summarise key points and use diagrams for better understanding.

Form a study group: Discussing concepts with classmates can solidify your knowledge.

Use online resources: Many websites offer revision notes, practice questions, and video explanations.

Focus on understanding, not memorising: Being able to explain concepts is crucial.

10. What is the full form of BST in class 11?

There isn't a common abbreviation for "Business Studies" used specifically in Class 11. It's usually referred to in full.

11. What are the deleted topics of business studies class 11?

The syllabus for Class 11 Business Studies can change slightly from year to year. It's best to check with your teacher or refer to official board updates for the latest information on deleted topics.

12. What is the concept of business class 11?

Class 11 Business Studies introduces you to the fundamental concepts of running a business. You'll learn about different types of businesses, their functions, and the environment they operate in. It covers forms of ownership, finance, marketing, and social responsibility.

13. What is sole proprietorship class 11?

A sole proprietorship is a business owned and controlled by one person. It's the simplest form of business ownership, but it also comes with limitations like unlimited liability, where the owner's assets are at risk.

14. What are the multiple objectives of business class 11?

Businesses don't just aim for profit. They also have social and environmental responsibilities. Class 11 Business Studies explores these multiple objectives, including:

Profit: Earning a return on investment.

Growth: Expanding the business and increasing market share.

Social Responsibility: Contributing positively to society and the environment.

NCERT Solutions for Class 11

Cbse class 11 study materials, home tuitions in india.

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Business Studies Class 11 Important Questions with Answers Chapter Wise BST

February 17, 2021 by Veerendra

CBSE Class 11 Business Studies Chapter Wise Important Questions and Answers 2020: Here we are providing CBSE Important Extra Questions for Class 11 Business Studies Chapter Wise Pdf download of Part 1 Foundations of Business and Part 2 Corporate Organisation, Finance and Trade in Hindi and English Medium. Students can get Business Studies Class 11 NCERT Solutions , Business Studies Class 11 Important Extra Questions and Answers designed by subject expert teachers.

CBSE Class 11 Business Studies Important Extra Questions and Answers Chapter Wise Pdf

Business Studies BST Class 11 Important Questions with Answers Chapter Wise Pdf Part 1 Foundations of Business

• Chapter 1 Nature and Purpose of Business Class 11 Important Questions
• Chapter 2 Forms of Business Organisation Class 11 Important Questions
• Chapter 3 Private, Public and Global Enterprises Class 11 Important Questions
• Chapter 4 Business Services Class 11 Important Questions
• Chapter 5 Emerging Modes of Business Class 11 Important Questions
• Chapter 6 Social Responsibilities of Business and Business Ethics Class 11 Important Questions

Important Questions of Business Studies BST Class 11 Part 2 Corporate Organisation, Finance and Trade

• Chapter 7 Formation of a Company Class 11 Important Questions
• Chapter 8 Sources of Business Finance Class 11 Important Questions
• Chapter 9 Small Business and Entrepreneurship Class 11 Important Questions
• Chapter 10 Internal Trade Class 11 Important Questions
• Chapter 11 International Business Class 11 Important Questions

We hope the given CBSE Class 11 Business Studies Important Questions Chapter Wise Pdf download of Part 1 Foundations of Business and Part 2 Corporate Organisation, Finance and Trade in Hindi and English Medium will help you. If you have any queries regarding NCERT Business Studies Class 11 Extra Important Questions and Answers, drop a comment below and we will get back to you at the earliest.

FAQ’s on Business Studies Class 11 Important Questions

Question 1. Where do I get Class 11 Business Studies 1 Mark Questions?

Answer: Important Questions for Class 11 Business Studies are provided on Learninsta.com by the subject experts. Check out chapter-wise Business Studies Class 11 Important Questions and Answers and prepare well for the exam.

Question 2. How do I score 90 plus in Business Studies Class 11 CBSE?

Answer: Score 90 Plus marks in the Business Studies Class 11 CBSE by referring to previous papers. Also, preparation notes are given on our website for better preparation for the exams.

Question 3. How should I learn class 11 Business Studies concepts easily?

Answer: Note down all the concepts of Class 11 Business Studies and prepare notes with all the Important Questions and Answers. Check out Business Studies Class 11 Important Questions with Answers on Learninsta.com

Question 4. Where can I get the list of Business Studies Class 11 Important Questions?

Answer: Stay tuned to Learninsta.com to get Business Studies Class 11 Important Questions. We update every important question of Business Studies Class 11 according to the new syllabus.

BUSINESS STUDIES FOR CLASS 11 CHAPTER 2 FORMS OF BUSINESS ORGANISATIONS MCQS ALONG WITH ANSWERS

Free CBSE Business Studies Multiple Choice Questions for Class 11 along with answers, Chapter 2: Forms of Business Organisations. Business Studies MCQs for Class 11 chapter-wise with answers are prepared based on the current exam pattern. Students can tackle MCQs with answers to realise their spadework level.

1. The simplest form of business ownership is a _____.

(a) Proprietorship

(b) Partnership

(c) Corporation

(d) Cooperative

Answer: (a) Proprietorship

2. At least 10 adults, no maximum limit in case of ________.

(a) Cooperative Society

(b) Joint Hindu Family

(c) Partnership

(d) Company

Answer: (a) Cooperative Society

3. The main disadvantage of a general partnership is _____.

(a) The unlimited liability of the partners

(b) Disagreement amongst partners

(c) Shared management

(d) Difficulty of termination

Answer: (a) The unlimited liability of the partners

4. The major advantage of a franchise is _____.

(a) Training and management assistance

(b) Personal ownership

(c) Nationally recognised name

(d) All of the above

Answer: (d) All of the above

5. Profits do not have to be shared. This statement refers to _____.

(a) Company

(b) Sole proprietorship

(c) Joint Hindu family business

(d) Partnership

Answer: (b) Sole proprietorship

6. The form of business organisation that has the largest sales volume is the _____.

(a) Partnership

(b) Corporation

(c) Cooperative

(d) Multinational

Answer: (b) Corporation

7. Which of the following is probably the most important reason for incorporating?

(a) Limited liability of shareholders

(b) More money for investment

(c) Increased flexibility

(d) Shared management

Answer: (a) Limited liability of shareholders

8. The structure in which there is a separation of ownership and management as per law is called _____.

(b) All business organisations

(d) Sole proprietorship

Answer: (a) Company

9. Provision of residential accommodation to the members at reasonable rates is the objective of _____.

(a) Consumers cooperative

(b) Credit cooperative

(c) Housing cooperative

(d) Producers cooperative

Answer: (c) Housing cooperative

10. In a cooperative society, the principle followed is ______.

(a) One share, one vote

(b) One man, one vote

(c) No vote

(d) Multiple votes

Answer: (b) One man, one vote

11. Which of the following is an advantage of a sole proprietorship?

(a) Ease of starting a business

(b) Being your own boss

(c) Pride of ownership

12. In case of ___________, registration is compulsory.

(a) Sole Proprietorship

(c) Company

(d) None of these

Answer: (c) Company

13. A partner whose association with the firm is unknown to the general public is called _____.

(a) Active partner

(b) Sleeping partner

(c) Nominal partner

(d) Secret partner

Answer: (d) Secret partner

14. The Karta in the Joint Hindu family business has _____.

(a) No liability for debts

(b) Unlimited liability

(c) Joint liability

(d) Limited liability

Answer: (b) Unlimited liability

15. A partner who is not actually involved in the partnership but lends his name for public relations purposes is a _____.

(a) Silent partner

(b) General partner

(d) Dominant partner

Answer: (c) Nominal partner

We trust that the offered Business Studies MCQs for Class 11 with respect to Chapter 2: Forms of Business Organisations will help you. Assuming you have any questions with respect to CBSE Class 11 Business Studies, Forms of Business Organisations MCQs, drop a remark underneath, and we will hit you up at the most punctual.

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• CBSE Class 11 Study Material

MCQs for CBSE Class 11 Business Studies Chapter 2 Forms of Business Organization: As Per Revised CBSE Syllabus 2024

  mcqs for cbse class 11 business studies chapter 2: this article brings to you multiple-choice questions of class 11 business studies chapter 2, forms of business organization. students can use the download link attached here to save it for future reference..

MCQs for CBSE Class 12 Business Studies Chapter 2: Central Board of Secondary Education(CBSE) has included MCQs as an integral part of the end-term exam question paper, making it important for students to practise MCQs. Here, we have listed MCQ-type questions for CBSE Class 11 Business Studies Chapter 2, Forms of Business Organizations. Solving MCQ-type questions can help you score good marks in upcoming CBSE End Term Examinations and prepares you for Competitive Exams.

• Read your chapters thoroughly
• Manage your time well
• Use a rough sheet for calculations
• Go through all the available options carefully
• Do not waste your time on questions you have no idea about
• Start with questions you are confident about

CBSE Class 11 Business Studies Revised Syllabus 2023-2024 (PDF)

MCQs for CBSE Class 11 Business Studies Chapter 2 Forms of Business Organizations

Find here a list of MCQs for CBSE Class 11 Business Studies Chapter 2 Forms of Business Organisations along with a pdf download link for the same. Check the MCQs and understand the type of 1-mark questions that can be a part of your exam. Multiple Choice Questions (MCQs) emphasizes on small details and thus builds a habit of reading in between the text.

  1)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?

(a) Partnership at will

(b) Particular Partnership

(c) General Partnership

(d) Limited Liability Partnership

Answer. d) Limited Liability Partnership

2)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?

(a) Elder Member

(c) Coparcener

(d) Partner

Answer. b) Karta

3)Which of the following statement is not correct?

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

(b) A private limited company can have a maximum of 200 members.

(c) A minor as a partner can inspect the books of the firm.

(d) One-person company is a company, which has one person as its member.

Answer. c) A minor as a partner can inspect the books of the firm

4)Profits are not shared in case of

(a) Company

(b) Cooperative society

(c) Sole proprietorship

(d) Partnership

Answer. c) Sole Proprietorship

5)Assertion (A) Sole Trading Concern is treated as a “One Man Show”.

Reason (R) It is owned, controlled, managed, and operated by the owner all alone.

(a) Both A and R are true. R is the correct explanation of A

(b) Both A and R are true, but R is not the correct explanation of A

(c) A is correct, but R is incorrect

(d) A is incorrect, but R is correct

Answer. a) Both A and R are true. R is the correct explanation of A

6)Ajeet started its Travel Agency in the year 2000 by taking a small room on Rent in Delhi. He invested money and efforts to build his business. Quality and timely services provided by his Travel Agency made him popular in Delhi. Name the form of business organization owned and operated by Ajeet.

(a) Partnership

(b) One-Person Company

(c) Joint Venture

(d) Sole Trading Concern

Answer. d) Sole Trading Concern

7)The maximum amount up to which a company can issue capital is called

(a) Authorized Capital

(b) Called Up Capital

(c) Issued Capital

(d) Subscribed Capital

Answer. a) Authorized Capital

8)Assertion (A) In a partnership firm the liability of all the partners is unlimited.

Reason (R) The partners are individually as well as jointly responsible for paying off business debts.

9)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?

(a) Active Prater

(b) Sleeping Partner

(c) Secret Partner

(d) Partner by Estoppel

Answer. d) Partner by Estoppel

10)After completing high studies in Hotel Management courses from one of the highly reputed Hotel Management Institutes of India, Mahesh decided to start his own Bakery in his hometown. His father arranged funds and supported him to commence his business. He recruited some staff and purchased the required equipment and machines. Within a few months, he started manufacturing bakery products in the market and sold them at reasonable prices. His quality products and reasonable prices helped him in making a good profit. Identify the form of business organization highlighted in the above case.

(b) Joint Hindu Family Business

(c) Sole Trading concern

Answer. c) Sole Trading Concern

11)Which of the following is not a clause of a memorandum of association?

(a) Capital clause

(b) Objects clause

(c) Director clause

(d) Name clause

Answer. c) Director Clause

12)Transfer of ownership is easy in the case of _____________ whereas it is difficult in the case of:

(a) Joint-stock company, partnership

(b) Sole proprietorship, joint stock company

(c) Sole proprietorship, partnership

(d) Partnership, joint stock company

Answer. a) Joint Stock company, partnership

13)Assertion (A) Secrecy can be maintained in the case of the sole proprietorship.

Reason (R) All Sole Proprietors are always honest.

Answer. c) A is correct but R is incorrect

14)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.

Answer. a) Partnership

15)Sudhanshu is an active partner in a partnership firm, where, the liability of partners is unlimited. Partners are allowed to participate in the management of the firm business. All the partners are abiding by the rules framed in the partnership. Registration of a partnership firm is optional and the firm business may come to an end in the event of death, insolvency, and lunatic of any partner. Which type of partnership is referred to in the above case?

(a) General Partnership

(b) Partnership at will

(c) Limited Liability Partnership

(d) Particular Partnership

Answer. a) General Partnership

CBSE Class 11 Syllabus 2023-24 (All Subjects)

CBSE Class 11 Deleted Syllabus 2023-24 (All Subjects)

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