MBA Forms of Business Organisation — practice questions
44 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice MBA Forms of Business Organisation in the app →A business owned, managed and controlled by one individual who takes all profits and risks is a:Sole proprietorship is most suitable for businesses that are:Starting a sole proprietorship needs hardly any legal formalities because:If a sole proprietor's firm owes 80,000 but its assets are only 60,000, the owner must bring in:The sole proprietor bears all the risk and in return receives:In the eyes of the law, a sole trader and the business have:Death, insanity or bankruptcy of the owner may close the firm, showing sole proprietorship suffers from:A sole proprietor can act on a market opportunity at once because of:A sole trader can keep business information secret partly because the law does not require him to:A major limitation of sole proprietorship is that resources are limited to personal savings and:Because creditors can reach personal assets, a sole proprietor is often less inclined to take risks in:One person rarely excels at purchasing, selling and financing together, which shows the limit of:Coca-Cola's syrup was created in Atlanta in 1886 by:Asa Candler achieved sole ownership of Coca-Cola in 1891 with an investment of:A business owned and carried on by members of a Hindu Undivided Family is a:Membership of a joint Hindu family business is acquired by:The head of a joint Hindu family business, who controls it, is called the:Members of a joint Hindu family business other than the karta are known as:In a joint Hindu family business, unlimited liability rests with the:When the karta dies, the joint Hindu family business:Which members can belong to a joint Hindu family business because membership comes by birth?Under the Hindu Succession Amendment Act of 2005, a daughter of a coparcener becomes:A business established, owned, operated and often financed by one person is a:An association of two or more people running a business together for profit is a:A partnership where all partners share in the management and the profits is a:A partnership with some partners of unlimited liability and others of limited liability is a:A legal entity with a life separate from its owners, who are not personally liable, is a:The owners of a corporation, holding shares that carry certain rights, are its:The group elected by those owners to handle overall management is the:A hybrid form giving the liability protection of a corporation with simpler taxation is a:A legal entity formed by people with similar interests, such as suppliers or customers, is a:Members joining together purely to gain combined purchasing power form a:Two or more companies forming an alliance for one specific project create a:A business arrangement letting one party trade under another's name and system is:The contract setting out the rules of that arrangement is the:The combination of two or more firms into one new company is a:The purchase of a target company by another corporation or an investor group is an:Two supermarket chains at the same stage of the same industry combine. That is a:A carmaker buys the firm that supplies its tyres. That is a:A media firm buys an unrelated food business to spread its risk. That is a:A takeover financed by very large amounts of borrowed money is a:The owner of a small shop wanting complete personal control would choose a:Which form protects an owner's personal assets from the firm's debts?Two firms wanting to pursue one project together without merging would set up a: