Business Studies Class XII OnlineTest

The Hindu Undivided Family (HUF) business is considered the oldest form of business organization in India, governed by Hindu law.

A dormant partner (also known as a sleeping partner) contributes capital and shares in profits/losses but does not participate in the daily management of the firm.

Fixed deposit accounts generally offer the highest interest rates because the money is locked in for a specific tenure, allowing the bank to use it for longer-term investments.

Ship and hull, cargo, and freight insurance are all standard types of marine insurance. Fixed line service is a telecommunications term, not an insurance type.

Life insurance is a contract of certainty, not indemnity, because the value of a human life cannot be measured in monetary terms to be 'restored' to its original state.

Life insurance is a contract of assurance, not indemnity. Unlike property insurance, it does not aim to restore the insured to their exact financial position prior to a loss, as human life cannot be valued in monetary terms.

Insurance functions include risk sharing, capital formation, and providing certainty. Lending of funds is a primary function of banks or financial institutions, not insurance companies.

A company must obtain a Certificate of Commencement of Business after incorporation to begin operations. Incorporation alone is insufficient for a public company to start business.

Preliminary contracts are those entered into by promoters on behalf of a proposed company before it is incorporated. These are necessary to set up the business structure.

A prospectus is a formal legal document issued by a public company to invite the public to subscribe to its shares or debentures. Private companies are prohibited from inviting the public to subscribe.

The Registrar of Companies (ROC) is the authority responsible for the registration and regulation of companies under the Companies Act. Applications for incorporation are filed with the ROC.

According to the Companies Act, the minimum number of members required to form a private company is 2. For a public company, the minimum is 7.

In a joint stock company, shareholders are the owners. They exercise their control by electing the Board of Directors to manage the company on their behalf.

Cooperative societies operate on the democratic principle of one man one vote, regardless of the amount of capital contributed or the number of shares held by a member.