Emergence of Different Business Organisations Class 8 Extra Questions and Answers Notes
We have provided here Emergence of Different Business Organisations Class 8 Extra Questions and Answers Notes by our Experienced Teacher. This Extra Questions and Answers Notes consists of MCQ Questions and Answers; Very Short Type Questions and Answer & Short Type Questions and Answers.
(MCQs):
1.) What is the main characteristic of a sole trading concern?
a) Limited capital
b) Multiple owners
c) Single owner and manager
d) Partnership structure
Answer: c)
2.) In a partnership firm, which type of partner contributes capital but does not actively participate in daily operations?
a) Active partner
b) Sleeping partner
c) Nominal partner
d) Minor partner
Answer: b)
3.) What is the maximum number of partners allowed in a partnership firm when conducting financial business?
a) Five
b) Ten
c) Fifteen
d) Twenty
Answer: b)
4.) Which type of business organization is primarily governed by the Hindu Law in India?
a) Sole trading concern
b) Partnership firm
c) Hindu undivided family business
d) Public sector enterprise
Answer: c)
5.) What is the main advantage of registering a partnership firm?
a) Tax benefits
b) Limited liability
c) Ability to file suits against third parties
d) Exemption from government regulations
Answer: c
6.) In a sole trading concern, who bears all the profits and losses?
a) A single person
b) Multiple partners
c) The government
d) Shareholders
Answer: a)
7.) What is the primary disadvantage of partnership firms?
a) Limited liability
b) Difficulty in transferring ownership
c) Lack of managerial skills
d) Government control
Answer: b)
8.) Who is responsible for managing a Hindu undivided family business?
a) Any male member of the family
b) The eldest male member (Karta)
c) The government
d) The youngest male member
Answer: b)
9.) What type of partner in a partnership firm neither contributes capital nor actively participates in business operations?
a) Active partner
b) Sleeping partner
c) Nominal partner
d) Minor partner
Answer: c)
10.) Which type of business organization is found only in India and is based on the Hindu Law?
a) Sole trading concern
b) Public sector enterprise
c) Joint sector business
d) Hindu undivided family business
Answer: d)
One liners:
1.) What is a business organization run by a single person called?
Answer: Sole proprietorship
2.) What is the legal document that contains the terms and conditions of a partnership firm?
Answer: Partnership deed
3.) Who manages a Hindu undivided family business?
Answer: Karta
4.) What is the maximum number of partners allowed in a partnership firm conducting general business?
Answer: Twenty
5.) What is the primary motive of sole trading concerns?
Answer: Profit
6.) What term is used for partners who do not contribute capital but share profits and losses?
Answer: Nominal partners
7.) Which type of partner in a partnership firm actively participates in daily operations?
Answer: Active partner
8.) What is the primary disadvantage of sole trading concerns in terms of capital?
Answer: Limited capital
9.) What is the legal document that certifies the registration of a partnership firm?
Answer: Certificate of Registration
10.) What type of partner in a partnership firm is eligible for profits but not for losses?
Answer: Minor partner
Short questions :
1: What are the four main categories of business organizations mentioned in the text?
Answer: The four main categories of business organizations are private sector, public sector, joint sector and public institutions.
2: What are the three types of private small business organizations?
Answer: There are three types of small business organizations in the private sector: Sole Proprietorship, Partnerships, and Hindu Joint Family Enterprises.
3: What are the main characteristics of a sole proprietorship?
Answer: A sole proprietorship is owned and managed by one person who is responsible for all profits and losses. They are easy to start, often small and can be run with the owner’s capital or family support.
4: What are the advantages of sole proprietorship?
Answer: The advantages of a sole proprietorship include ease of start-up, complete control of profits, direct interaction with consumers, employment, participation in wealth sharing and the ability to make quick business decisions.
5: What are the disadvantages of monopoly problems?
Answer: Disadvantages of a sole proprietorship include limited capital, limited management options, unlimited personal liability for losses and the risk of closure due to the death or insolvency of the owner.
6: What is the Partnership Act, 1932 and how does it define a partnership firm?
Answer: The Partnership Act 1932 defines a partnership firm as a relationship between persons who agree to share the profits of the firm. It allows the establishment of partnership companies with a maximum of ten partners in financial business and twenty partners in open partnership business.
7: What are the different types of partners commonly found in partnership firms?
Answer: Common partnership types in partnership firms include active partners (involved in day-to-day operations), inactive partners (invests capital but does not actively participate), nominal partners (does not contribute capital and does not actively participate), and sub-partners (under 18 years of age, who entitled to receive profits, but not loss).
8: What is a partnership agreement and what information does it usually contain?
Answer: A Memorandum of Association is a written agreement signed by all parties. It contains information such as the name of the company, the names and addresses of the partners, the nature of the company, the capital investment, the profit sharing ratios, the obligations of the partners, the dispute resolution procedure and the conditions for admission. or withdrawal of partners. .
9: What are the advantages of partnership firms?
Answer : The advantages of partnership firms are ease of incorporation, capital increase due to multiple partners, better management efficiency, greater reliability, sharing of business losses, preservation of trade secrets, easy liquidation process and opportunity to implement creative ideas.
10: What is the importance of registering a partnership and what are the benefits of registration?
Answer : Registration of a partnership gives legal recognition. It allows the company to file lawsuits against third parties, allows partners to file lawsuits against each other for loans and foreclosures, and provides protection against third party claims. Unregistered companies cannot take advantage of these benefits and may be subject to legal actactinn.
Long answer type:
1: What are the main types of private business organizations and how are they classified?
Answer: In the private sector, business organizations can be divided into four main types: private business organizations, public sector business organizations, joint sector business organizations and public institutions. In this chapter, we will focus on the first two types. The private sector business organizations under consideration include both small and large enterprises.
2: What are the main characteristics, advantages and disadvantages of private exclusive business affairs?
Answer: Sole proprietorships are businesses that are owned and operated by a single person. They have several special features such as easy start-up, legal restrictions on liquidation or incorporation, and the sole proprietor is fully responsible for profits and losses. The advantages of sole trading are the ease of starting, direct contact with consumers, employment and quick decision making. However, they also have limitations such as limited capital, limited management ability and the risk of stopping the business due to the insolvency or death of the sole owner.
3: What is a partnership firm and what kind of partners do such firms usually have?
Answer: A partnership firm is a business organization formed when two or more people come together to do business and share profits and losses. A partnership firm has various partners including:
1) Active partners: they invest capital and actively participate in the daily operations of the company.
2) Sleeping partners: They invest capital but do not actively participate in the day-to-day affairs of the company.
3) Nominal partners: They do not contribute capital and do not actively participate in the day-to-day business of the company, but are responsible for business losses.
4) Minor partners: These are persons under 18 years of age and can be accepted as partners by mutual agreement. They are entitled to profits but not losses.
4: What is a partnership agreement and what information does it usually contain?
Answer: A partnership agreement is a written agreement that defines the terms of the partnership’s business. It is usually signed and stamped by all partners. A partnership agreement usually contains information such as the name of the company, the names and addresses of the partners, the nature of the business, the capital investment of each partner, the profit sharing ratios, the responsibilities of the partners, the division of labor. , the procedure for accepting new partners. And dispute-resolution mechanisms. It serves as a legal document that defines the rights, responsibilities and obligations of each partner in the partnership.
5: What are the advantages and disadvantages of partnership firms as a form of business organization?
Answer: Partnership firms have several advantages such as ease of incorporation, access to more capital due to multiple partners, better management efficiency through division of labor, greater reliability due to unlimited liability, sharing of business losses, preservation of trade secrets, ease of dissolution and capacity implement creative ideas. However, they also have disadvantages, such as possible disputes and disagreements between partners, limited capital due to the number of partners, unlimited liability that can discourage potential partners, risk of careless decisions by some partners, instability due to changes in partners. , difficulties in transferring partnership interests, lack of government oversight, and challenges in maintaining trade secrets when multiple partners are involved.