Question 1

Which of the following is the oldest form of business organization?

Accepted Answer

Sole proprietorship is the oldest, simplest, and most common form of business organization. It is owned, managed, and controlled by a single individual who bears all the risks and receives all the profits.

Question 2

Liability of the karta in a Joint Hindu Family business is:

Accepted Answer

In a Joint Hindu Family business, the liability of the karta is unlimited, meaning his personal assets can be used to repay business debts, unlike other members whose liability is limited.

Question 3

The minimum number of members required to form a private company is:

Accepted Answer

According to the Companies Act, the minimum number of members required to form a private company is 2, while the maximum is 200.

Question 4

Maximum number of partners in a banking business partnership is:

Accepted Answer

As per the Companies Act, the maximum number of partners in a banking business is 10, whereas for other general businesses it is 50.

Question 5

Cooperative societies are formed with the primary objective of:

Accepted Answer

The primary objective of a cooperative society is mutual help and service to its members, rather than earning maximum profit.

Forms of Business Organisations