Class 11 Business Studies Important Chapter 2 Forms of Business Organisation

Class 11 Business Studies Important Chapter 2 Forms of Business Organisation Solutions English Medium As Per AHSEC New Syllabus to each chapter is provided in the list so that you can easily browse through different chapters ASSEB Class 11 Business Studies Important Solutions and select need one. AHSEC Class 11 Business Studies Additional Notes English Medium Download PDF. HS 1st Year Business Studies Important Solutions in English.

Class 11 Business Studies Important Chapter 2 Forms of Business Organisation

Also, you can read the NCERT book online in these sections Solutions by Expert Teachers as per Central Board of Secondary Education (CBSE) Book guidelines. ASSEB Class 11 Business Studies Additional Question Answer are part of All Subject Solutions. Here we have given HS 1st Year Business Studies Important Notes in English for All Chapters, You can practice these here.

Forms of Business Organisation

Chapter: 2

Part – I: Foundations of Business

IMPORTANT QUESTION AND ANSWER

Short Type Question and Answer:

1. What is meant by sole proprietorship?

Ans: Sole proprietorship is a form of business owned, managed, and controlled by a single individual who bears all the risks and enjoys all the profits.

2. State any two features of sole proprietorship.

Ans: (i) Unlimited liability.

(ii) No separate legal entity.

3. What do you understand by unlimited liability?

Ans: It means the personal assets of the owner can be used to repay the business debts if business assets are insufficient.

4. What is meant by Joint Hindu Family business?

Ans: It is a form of business governed by Hindu Law, run by members of a joint family and managed by the eldest member called the karta.

5. Who is a karta?

Ans: Karta is the eldest member of a Joint Hindu Family who manages and controls the business.

6. Give two merits of sole proprietorship.

Ans: (i) Quick decision-making.

(ii) Confidentiality of information.

7. Mention two limitations of a partnership firm.

Ans: (i) Unlimited liability.

(ii) Possibility of conflicts.

8. What is a partnership deed?

Ans: A written agreement containing the terms and conditions among partners is called a partnership deed.

9. Define a cooperative society.

Ans: A cooperative society is a voluntary association of people working together to promote their economic interests.

10. What is meant by perpetual succession in a company?

Ans: Perpetual succession means the company continues to exist even if its members change due to death or exit.

11. What is a private company?

Ans: A private company is a company that restricts share transfers, has 2 to 200 members, and cannot invite the public to invest.

12. What is meant by a public company?

Ans: A public company is one that can invite the public to invest, with a minimum of 7 members and no maximum limit.

13. Mention any two types of cooperative societies.

Ans: (i) Consumer cooperative society.

(ii) Producer cooperative society.

14. What is meant by limited liability?

Ans: Limited liability means that a member’s financial liability is restricted to the amount of capital contributed by them.

15. Name two factors influencing the choice of business organisation.

Ans: (i) Capital requirement.

(ii) Degree of control.