Practice Test


Q1) __________ is a feature of partnership form of business. Show Answer


Q2) __________ form of business is/are appropriate for retail business. Show Answer


Q3) Which one of the following does not have perpetual succession? Show Answer


Q4) In a Hindu Undivided Family, liability of __________ is unlimited. Show Answer


Q5) In relation to business organisation structure, which one of the following is easy to form and wind up? Show Answer


Q6) Which is not a feature of LLP? Show Answer


Q7) Voting right that vests with each member of co-operative society is: Show Answer


Q8) Gas Authority of India Limited is an example of: Show Answer


Q9) Which one of the following is the oldest and simplest form of organisation? Show Answer


Q10) Which one of the following is treated as a separate legal entity different from its members? Show Answer


Q11) Why co-operative marketing society is formed? Show Answer


Q12) The choice of an appropriate form of business organisation largely depends upon:
I. Ease of formation
II. Continuity and stability
III. Liability aspects Show Answer


Q13) The minimum number of members required to get a co-operative society registered is Show Answer


Q14) Which of the following entity is created under an Act of the Parliament or an Act of the State legislature? Show Answer


Q15) Which form of business organisation has a separate legal entity ? Show Answer


Q16) What is the liability of each partner under LLP? Show Answer


Q17) Which of the following is not a form of organisation? Show Answer


Q18) Who can be the head of Joint Hindu Family business? Show Answer


Q19) Members of RUF are known as Show Answer


Q20) Which amongst the following is a feature of LLP? Show Answer


Q21) Head of HUF is known as Show Answer


Q22) In case of HUF what are liabilities of Co-parcener and Karta Show Answer


Q23) To form a partnership, the minimum capital contribution should be: Show Answer


Q24) The Karta in Joint Hindu Family business has: Show Answer


Q25) The objects and powers of a statutory corporation: Show Answer


Q26) Which corporation has both characteristics i.e. of a partnership and of a separate legal entity? Show Answer


Q27) Kendriya Bhandar is a: Show Answer


Q28) What is Karta’s liability in HUF? Show Answer


Q29) Which of these is not a statutory corporation? Show Answer


Q30) Liability of other Co-parceners are: Show Answer


Q31) Business undertaking are generally exposed to: Show Answer


Q32) A Public Corporation has Show Answer


Q33) The liability of each member of the Hindu Undivided Family business is: Show Answer


Q34) The affairs of a company is overseen by: Show Answer


Q35) In case of Hindu Undivided Family, the individual share of each coparcener: Show Answer


Q36) The size and structure of business depend on many factors which (are): Show Answer


Q37) Limited Liability Partnership is constituted under __________. Show Answer


Q38) In case of Cooperative Societies minimum number of members are: Show Answer


Q39) Sole proprietary business is suitable when market is Show Answer


Q40) Limited liability partnership is constituted under __________. Show Answer


Q41) Following is not a characteristic of business organisation: Show Answer


Q42) is a form of business that is owned, managed and controlled by an individual. Show Answer


Q43) Individual owing and running the business is known as:- Show Answer


Q44) Which of the following is an advantage of sole proprietorship? Show Answer


Q45) Which of the following has most stable existence? Show Answer


Q46) Which form of organisation is only found in India? Show Answer


Q47) The business affairs are managed by the head of the family, known as: Show Answer


Q48) Karta’s liability is Show Answer


Q49) Mutual agency is an important feature of Show Answer


Q50) Company is managed by shareholders Show Answer


Q51) In which of the following, the ownership of venture is reflected by ownership of shares or stock? Show Answer


Q52) For having direct control over the business activities, which form is preferred Show Answer


Q53) Which is not a characteristic of sole proprietorship? Show Answer


Q54) What are the characteristics of HUF? Show Answer


Q55) Cooperative society is that society which has been registered under the Cooperative Society Act __________? Show Answer


Q56) LLP, this forms of organisation has been introduced in India by way of? Show Answer


Q57) Which is the last step to end LLP? Show Answer


Q58) Direct motivation, maintenance of business secrets, close personal relations etc are the advantages of Show Answer


Q59) The profit share of coparceners in a HUF Show Answer


Q60) In case of death of a partner Show Answer


Q61) Greater Permanency, limited liability, ease of transfer of ownership are the advantages of Show Answer


Q62) AMUL milk products is an example of Show Answer


Q63) The societies formed to provide financial support to the members are called Show Answer


Q64) Voluntary association, utilization of surplus, cash trading etc. are the characteristics of Show Answer


Q65) Which of the following statement is true in respect of the voting rights of a member in a Co-operative Society? Show Answer


Q66) An economic activity consisting of production, buying and selling of products and Services is Show Answer


Q67) Commercial Awareness involves knowledge of Show Answer


Q68) Which of the following statements distinguishes business from entrepreneurship?
Show Answer


Q69) The three most valuable attributes to be successful in business-
(i) Can-Do Attitude (ii) Resistance to change
(iii) Commercial Awareness (iv) Traditional approach
(v) Contentment (vi) Technical Skills
Show Answer


Q70) Which of the following is a Business activity? Show Answer


Q71) Which of the following statements does not comprise business activity? Show Answer


Q72) Trade is broadly classified into - Show Answer


Q73) Stock Market Players who raise the stock prices through building a buy pressure are called Show Answer


Q74) Which of the following is not an economic objective of the firm? Show Answer


Q75) Stock Market players that have pessimistic expectations - Show Answer


Q76) BCK helps CAS in - Show Answer


Q77) The level of Business and Commercial knowledge / Commercial Awareness may be referred to as Show Answer


Q78) Which of these is true about updating the level of BCK?
(a) Non-commerce Background is a negative for improving BCK.
(b) Only Business Newspaper helps in updating BCK
(ii) Even a TV commercial can impart knowledge
(iv) Reflective Thinking on various observations and updates is a must.
Show Answer


Q79) Which is not true about an economic activity? Show Answer


Q80) Activity performed without any regard to monetary gain is - Show Answer


Q81) An example of Non-Economic Activity Show Answer


Q82) Trading implies buying for the purposes of selling. Applying this criterion, tell which of the following activities would not qualify as trading? Show Answer


Q83) Production represents the _______ side of economics Show Answer


Q84) Productive activity means production of goods - Show Answer


Q85) Which of the following occupations requires rendering of services based upon specialized knowledge and membership of an accreditation and assessment body? Show Answer


Q86) Income – Spending = Show Answer


Q87) Transfer of Interest exists in - Show Answer


Q88) The occupation in which people work for others and get remunerated in return is known as: Show Answer


Q89) Economic activities may be classified into Business, _______ and Employment Show Answer


Q90) What is the psychological motive of employment Show Answer


Q91) Which of the following statements describes the best Joint Hindu / Hindu Undivided Family (HUF) Business? Show Answer


Q92) Which of the following is not an advantage of single ownership? Show Answer


Q93) Which of the following is an advantage of joint ownership? Show Answer


Q94) Sustainable development / businesses imply: Show Answer


Q95) Personal interest in business is more in Show Answer


Q96) Non-corporate Entity includes - Show Answer


Q97) Which of the following statements characterizes the best non-economic activities? Show Answer


Q98) _________ is a type of enterprise that is owned and run by one natural person and in which there is no legal distinction between the Owner and the Business Entity. Show Answer


Q99) Demerits of a Sole Proprietorship Show Answer


Q100) The Indian Companies Act provides for the registration of: Show Answer


Q101) HUF consists of Show Answer


Q102) _______ successive generations of an Undivided Family are known as HUF. Show Answer


Q103) Which of the following is not true about HUF? Show Answer


Q104) The income of a profession is called Show Answer


Q105) In employment a person receives Show Answer


Q106) Income of a businessman is called Show Answer


Q107) Which of the following is not a business activity: Show Answer


Q108) In which of the following occupations services of specialised nature are provided for fee Show Answer


Q109) Which of the following occupations involve maximum risk Show Answer


Q110) Which of the following statements best describe economic activities. Show Answer


Q111) The head of the joint Hindu family business is called Show Answer


Q112) The maximum number of partners in a partnership firm can be: Show Answer


Q113) Taking photographs of mountains as a hobby is an economic activity. Show Answer


Q114) Teaching in a school is a non-economic activity. Show Answer


Q115) Service or employment is an economic activity. Show Answer


Q116) Business involves buying and selling of goods and services. Show Answer


Q117) Running a hair-cutting saloon is a business. Show Answer


Q118) Occupations of doctors, lawyers and chartered accountants are called professions. Show Answer


Q119) Economic activities are undertaken for earning a living. Show Answer


Q120) Industry and commerce are interchangeable terms. Show Answer


Q121) Commerce is a wider term than trade. Show Answer


Q122) Trade between two countries is known as internal trade. Show Answer


Q123) Conversion of cotton into cloth is an example of genetic industry. Show Answer


Q124) A joint Hindu family business is the result of a contract between the members of the family. Show Answer


Q125) Every member of a joint Hindu family business is an agent of the firm Show Answer


Q126) There is no limit on the number of members in a joint Hindu family business. Show Answer


Q127) Female members of a family do not have a share in the joint Hindu family business. Show Answer


Q128) A joint Hindu family business is not dissolved on the death of a member. Show Answer


Q129) Registration of a partnership is legally compulsory. Show Answer


Q130) Limited partnership is not allowed in India. Show Answer


Q131) A partnership can take as many partners as it likes. Show Answer


Q132) A minor can become a partner. Show Answer


Q133) Partners may come and go but the partnership goes on forever. Show Answer


Q134) A person becomes a partner on his birth in the family. Show Answer


Q135) A private company must file a statement in lieu of prospectus. Show Answer


Q136) A company which does not want to prepare its own Articles of Association can adopt Table A. Show Answer


Q137) A company wanting to raise capital must issue a prospectus. Show Answer


Q138) A private company can start its business immediately after incorporation. Show Answer


Q139) Capital clause is a part of the Articles of Association Show Answer


Q140) The Memorandum of Association defines the relationship of a company with or outsiders Show Answer


Q141) Every company must issue a prospectus to raise share capital. Show Answer


Q142) The capital of a company is divided into number of parts, each one of which is called Show Answer


Q143) The form of business organisation in which there is separation of ownership and management is called Show Answer


Q144) A joint stock company is separate legal entity. Show Answer


Q145) A company survives even if all its members die. Show Answer


Q146) A joint stock company is a voluntary association of persons. Show Answer


Q147) A joint stock company is less stable than a partnership. Show Answer


Q148) Registration of a joint stock company is optional. Show Answer


Q149) There can be no conflict of interest in a joint stock company. Show Answer


Q150) A company is an artificial legal person. Show Answer


Q151) LIC is a statutory company. Show Answer


Q152) At least five persons are needed to form a public company. Show Answer


Q153) The minimum paid up capital of a private company must be Rupees five lakh. Show Answer


Q154) A private company can invite public deposits. Show Answer


Q155) The shares of a public company are transferable Show Answer


Q156) A subsidiary of a public company is also a public company. Show Answer


Q157) The concept of private company deemed to be public no longer exists in India. Show Answer


Q158) There is no chartered company in India. Show Answer


Q159) An economic activity consisting of production, buying and selling of products and Services is Show Answer


Q160) Commercial Awareness involves knowledge of Show Answer


Q161) Which of the following statements distinguishes business from entrepreneurship? Show Answer


Q162) The three most valuable attributes to be successful in business -
(i). Can-Do Attitude
(ii). Resistance to change
(iii). Commercial Awareness
(iv). Traditional approach
(v). Contentment
(vi). Technical Skills
Show Answer


Q163) Which of the following is a Business activity? Show Answer


Q164) Which of the following statements does not comprise business activity? Show Answer


Q165) Trade is broadly classified into - Show Answer


Q166) Stock Market Players who raise the stock prices through building a buy pressure are called Show Answer


Q167) Which of the following is not an economic objective of the firm? Show Answer


Q168) Stock Market Players that have pessimistic expectations Show Answer


Q169) BCK helps CAs in Show Answer


Q170) The level of Business and Commercial Knowledge / Commercial Awareness may be referred to as Show Answer


Q171) Which of these is true about updating the level of BCK?
(a) Non-Commerce Background is a negative for improving BCK.
(b) Only Business Newspaper helps in updating BCK
(c) Even a TV commercial can impart knowledge
(d) Reflective Thinking on various observations and updates is a must.
Show Answer


Q172) Which is not true about an economic activity? Show Answer


Q173) Activity performed without any regard to monetary gain is Show Answer


Q174) An example of Non-Economic Activity Show Answer


Q175) Trading implies buying for the purposes of selling. Applying this criterion, tell which of the following activities would not qualify as trading? Show Answer


Q176) Production represents the _____ side of economics Show Answer


Q177) Productive activity means production of goods Show Answer


Q178) Which of the following occupations requires rendering of services based upon specialised knowledge and membership of an accreditation and assessment body? Show Answer


Q179) Income - Spending = Show Answer


Q180) Transfer of Interest exists in Show Answer


Q181) The occupation in which people work for others and get remunerated in return is known as: Show Answer


Q182) Economic activities may be classified into Business, _______ and Employment Show Answer


Q183) What is the psychological motive of employment Show Answer


Q184) Which of the following statements describes the best Joint Hindu / Hindu Undivided Family (HUF) Business? Show Answer


Q185) Which of the following is not an advantage of single ownership? Show Answer


Q186) Which of the following is an advantage of joint ownership? Show Answer


Q187) Sustainable development/ businesses imply: Show Answer


Q188) Personal interest in business is more in Show Answer


Q189) Which of the following statements characterises the best non-economic activities? Show Answer


Q190) ________ is a type of enterprise that is owned and run by one natural person and in which there is no legal distinction between the Owner and the Business Entity. Show Answer


Q191) Demerits of a Sole Proprietorship - Show Answer


Q192) The Indian Companies Act provides for the registration of: Show Answer


Q193) HUF consists of - Show Answer


Q194) _______ successive generations of an Undivided Family are known as HUF. Show Answer


Q195) Which of the following is not true about HUF? Show Answer


Q196) Non-corporate Entity includes - Show Answer


Q197) Which one of the following is treated as a separate legal entity different from its members? Show Answer


Q198) CSR stands for: Show Answer


Q199) LLP has: Show Answer


Q200) Which of the following is correct? Show Answer


Q201) In HUF: Show Answer


Q202) The Logo of Institute of Chartered Accountants of India (ICAI) is suggestive of .................... Show Answer


Q203) When FERA is converted into a FEMA: Show Answer


Q204) Which is not a merit of LLP? Show Answer


Q205) Income tax Act, HUF cannot card which type of Show Answer


Q206) HUF................... be formed by a group of people who do not constitute a family. Show Answer


Q207) No. of directors in a private company. Show Answer


Q208) Economic, Activities are driven cause of...................? Show Answer


Q209) Economic activities do not include Show Answer


Q210) Which of the following is a form of business organisation? Show Answer


Q211) ................... is a form of business that is owned, managed and controlled by an individual. Show Answer


Q212) Which is the oldest business form? Show Answer


Q213) Which of the following would have unlimited liability? Show Answer


Q214) What is the maximum strength of HUF— Show Answer


Q215) Only coparcener can become a Karta, This statement is— Show Answer


Q216) Karta’s liability is— Show Answer


Q217) What is the maximum number of partners in any partnership firm? Show Answer


Q218) Company have a perpetual succession and work under a common seal. This statement is— Show Answer


Q219) Statutory body is a body that is created under an Act enacted by Show Answer


Q220) LLP Act, 2008 came into effect on— Show Answer


Q221) Which is not an advantage of Joint Hindu Family business. Show Answer


Q222) What are the advantages of company? Show Answer


Q223) In case of death of a Co-parceners Show Answer


Q224) Which of the following statement is true in respect of a HUF? Show Answer


Q225) Which of the following statements is true Show Answer


Q226) Registration of Partnership is not compulsory but beneficiary. Show Answer


Q227) Lack of secrecy, promotion of frauds, separation of ownership from management are the disadvantages Show Answer


Q228) The maximum number of partners in a LLP are Show Answer


Q229) Business as a institution is Show Answer


Q230) Which of the following is part of HUF ? Show Answer


Q231) Which of the following is organic objective of business ? Show Answer


Q232) Which of the following statement is correct with respect to HUF ? Show Answer


Q233) The attribute of a profession does not include. Show Answer


Q234) What are features of BCK ? Show Answer


Q235) There can be partnership between : Show Answer


Q236) Which is not part of HUF ? Show Answer


Q237) Which of these is not a characteristic of LLP ? Show Answer


Q238) Which of the followings shares the relationship between the partners of LLP ? Show Answer


Q239) ' A partnership may be formed to carry on : Show Answer


Q240) Which of the following is not an economic activity ? Show Answer


Q241) Intellectual property rights and copy rights is an example of which of following key factor of PESTLE Matrix ? Show Answer


Q242) According to Income Tax Act, which of the following cannot be a source of income for HUF ? Show Answer


Q243) What is popuular psychological motive in case of profession as an economic occupation ? Show Answer


Q244) Limited liability partnership is : Show Answer


Q245) Perpetual succession indicates ..... Show Answer


Q246) Which of the following is the recently introduced form of business organizations in India wide Companies Act, 2013 ? Show Answer


Q247) Which of the following is a Hybrid form of Business Organization ? Show Answer


Q248) Which of the following statements characterizes the best non-economic activities ? Show Answer


Q249) Maximum no of members in LLP is : Show Answer


Q250) HUF cannot comprise member of : Show Answer


Q251) Maximum no. of members in banking firm is : Show Answer


Q252) The liability of members of HUF business is : Show Answer


Q253) Human activities distinguishable by presence of the livelihood motives are known as : Show Answer


Q254) Which one of the following is an organic objective of business ? Show Answer


Q255) A company created for a future project and has no significant accounting transaction is called as : Show Answer


Q256) Which of the following is not a feature of limited liability partnership? Show Answer


Q257) In Business and Commercial Knowledge (BCK) vocabulary, 'strategy' is originally belongs to which discipline ? Show Answer


Q258) Which of the following is not a feature of private company ? Show Answer


Q259) Under which Act a HUF enjoys a separate entity status ? Show Answer


Q260) Which of the following is not included in BCK lexicon ?
Show Answer


Q261) What is the most popular psychological motive of profession ?
Show Answer


Q262) A company with 2 shareholders and 2 directors can be - Show Answer


Q263) The term 'usual occupation' in market terminology refers to -
Show Answer


Q264) Which of the following in considered as an non economic activity ?
Show Answer


Q265) Which of the following is hybrid form of business ? Show Answer


Q266) Contractual co-ownership of a business is known as -
Show Answer


Q267) The numbers of minimum directors in private company Show Answer


Q268) Profit is earned from which - Show Answer


Q269) A company created for a future project and has no significant accounting transaction is called as
Show Answer


Q270) Which of the following is not a feature of private company.
Show Answer