Tag: elements of business

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Questions Related to elements of business

Multiple choice elements of business classification of human activities characteristics of business activities economic and non-economic activities human activities - commercial and non-commercial activities

Who of the following has defined business as "Human activity directed towards producing or acquiring wealth through buying and selling goods"?

  1. Wheeler

  2. H. Fayol

  3. J. Stephenson

  4. Lewis H. Haney
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

According to Lewis H. Haney defined business as "Human activity directed towards producing or acquiring wealth through buying and selling goods." 

In other words, business is concerned with buying and selling of goods and services and earning profit. 

Multiple choice elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

The maximum number of partners allowed in the banking business are ______________.

  1. Twenty

  2. Ten

  3. No limit

  4. Two
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The maximum number of members that can exist in partnership is 10 in case of a firm carrying on banking business and 20 in case of any other business.

Multiple choice elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

Provision of residential accommodation to the member at reasonable rates is the objective of ________________.

  1. Producer's co-operative

  2. Consumer's co-operative

  3. Housing co-operative

  4. Credit co-operative
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Cooperative housing societies are formed to provide residential accommodation to its members at a reasonable rate. They purchase land, develop it and construct houses or flats and allot the same to members.

Multiple choice elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

Which of the following is not characteristic of LLP?

  1. A legal entity having perpetual succession, separate from its partners.

  2. The mutual rights and duties of partners of an LLP inter se and those of the LLP and its partners shall be governed by an agreement between partners

  3. Each partner is an equal member in a LLP company.

  4. Easy to establish than sole proprietorship.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

LLPs are generally considered easier to establish than traditional companies but are more complex to establish than a sole proprietorship, which requires minimal legal formality. The other options correctly describe legal characteristics of an LLP.

Multiple choice elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

____________ is the most flexible kind of business Organisation.

  1. Sole Proprietorship

  2. Partnership

  3. Co-Operatives and Trusts

  4. Limited Liability Partnership
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Sole proprietorship is the most flexible business form because the owner has total control and can change business operations, location, or scale without needing consensus or complex legal amendments.

Multiple choice elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

The business in which only a single owner arranges the capital is ____________.

  1. Partnership

  2. Hindu joint family business

  3. Sole proprietorship

  4. NGOs
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A sole proprietorship is a business owned and operated by a single individual who provides the capital and assumes all risks.

Multiple choice elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

Following is not a characteristic of sole proprietorship business _______________.

  1. Easy to form and wind up

  2. Difficult to maintain secrets

  3. Direct motivation

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

A key advantage of a sole proprietorship is the ability to maintain business secrets, as there is no requirement to share information with partners or publish financial statements. Therefore, saying it is 'difficult to maintain secrets' is incorrect.

Multiple choice elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

One of the hardships of a sole proprietorship is that _________________.

  1. Capital is limited to owner's savings and bank loans

  2. It has to complete too many registration fomalities

  3. As they are government owned there is no profit motive

  4. More tax is charged on them
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Because a sole proprietor is a single individual, their ability to raise capital is limited to their personal savings and what they can borrow from banks, unlike corporations that can issue shares.

Multiple choice elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

One of the best advantages of proprietorship is that _________________.

  1. Limited liability is enjoyed

  2. Shares can be sold to raise capital

  3. Profits are to be shared

  4. The owner has independence
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The primary advantage of a sole proprietorship is the independence of the owner, who makes all decisions and keeps all profits without needing to consult others.

Multiple choice elements of business sole trade meaning, features and merits of sole proprietorship sole proprietorship - meaning & features formation, characteristics, merits & demerits and objectives of sole proprietorship

The risk of the sole proprietorship business is shared with the employees of the business _______________.

  1. Partly true

  2. True

  3. Partly false

  4. False
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In a sole proprietorship, the owner bears the entire risk of the business. Employees are paid wages and do not share in the business risks or losses.