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Business Organization MCQs – Chapter 5 DAE

1. Sole proprietorship business is suitable for?

(A) Small scale business


(B) Medium Scale business


(C) Large scale business


(D) All




2. Anyone can start sole proprietorship business:

(A) After approval of govt.


(B) According to Act 1932


(C) None of these


(D) Whenever he/she wants




3. In sole proprietorship, capital is:

(A) Unlimited


(B) Limited


(C) Abundant


(D) All




4. Economic activities whose purpose is to earn profit is called:

(A) Profit


(B) Business


(C) Share


(D) Dividend




5. Sole proprietorship is ………type of business:

(A) Out dated


(B) Latest


(C) Oldest


(D) Modern




6. Minimum number of partner(s) in sole proprietorship business is/are?

(A) One


(B) Zero


(C) Two


(D) Three




7. Life of sole proprietorship business is:

(A) Short


(B) Long


(C) Fixed


(D) None




8. In sole proprietorship, the relationship of sole proprietors with customers are:

(A) Both b & c


(B) Indirect


(C) Not exist


(D) Direct




9. Partnership business is formed under act:

(A) 1913


(B) 1932


(C) 1984


(D) 2021




10. Liability of partners in partnership is:

(A) None


(B) Limited


(C) Fixed


(D) Unlimited




11. Minimum number of partners in partnership:

(A) 2


(B) 10


(C) 7


(D) 20




12. Distribution of profit/loss in partnership is made:

(A) As per partner’s working


(B) As per capital ratio


(C) As per agreement


(D) Equal




13. Registration of partnership is legally:

(A) Mandatory


(B) Not mandatory


(C) Depends on partner’s will


(D) Both b & c




14. Maximum number of partners in banking system under partnership is:

(A) 2


(B) 20


(C) 10


(D) Unlimited




15. By the death of any partner, business will be:

(A) Wound up


(B) Continued


(C) Transferred


(D) None




16. Joint Stock Company is formed under …………...act in Pakistan.

(A) 1876


(B) 1932


(C) 2017


(D) 1984




17. A joint stock company is a voluntary association of individuals for?

(A) All are correct


(B) Welfare


(C) Society


(D) Earning profit




18. Liability of shareholders is……………... in joint stock company?

(A) Fixed


(B) Unlimited


(C) Limited


(D) All




19. Shares of public limited company are ……….?

(A) Transferable to anyone


(B) Non-transferable to anyone


(C) Government approval required for transfer


(D) Other shareholders consent required for transfer




20. Minimum number of partners/shareholders in a public limited company as per act 2017 are?

(A) 2


(B) 7


(C) 3


(D) 10




21. Minimum number of partners/shareholders in a private limited company are?

(A) 3


(B) 2


(C) 7


(D) 10




22. Maximum number of shareholders in a public limited company?

(A) Unlimited


(B) 1000


(C) 5000


(D) 10




23. Minimum number of promotors in a public limited company?

(A) 2


(B) 5


(C) 50


(D) 7




24. Minimum number of promotors in a private limited company?

(A) 3


(B) 2


(C) 5


(D) 7




25. A document through which general public is offered to buy shares of the company is called?

(A) Memorandum of association


(B) Articles of association


(C) Statement in lieu of prospectus


(D) Prospectus




26. A document which is prepared for guidance of public outside the company is called?

(A) Memorandum of association


(B) Articles of association


(C) Prospectus


(D) Statement in lieu of prospectus




27. A document which is prepared for rules and regulation for smoothly running internal matters of the company is called?

(A) Articles of association


(B) Memorandum of association


(C) Prospectus


(D) Statement in lieu of prospectus




28. A company which cannot start its business without certificate of commencement of business is called?

(A) Statutory company


(B) Charted company


(C) Private limited company


(D) Public limited company




29. A company which can start its business without certificate of commencement of business is called?

(A) Statutory company


(B) Private limited company


(C) Charted company


(D) Public limited company




30. Public limited company and private limited company are the types of?

(A) Sole Proprietorship


(B) Partnership


(C) Joint Stock Company


(D) All




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