Discuss the features of a Sole Proprieto | Class 11 Business Studies Chapter Forms of Business Organisation, Forms of Business Organisation NCERT Solutions

Welcome to the NCERT Solutions for Class 11 Business Studies - Chapter Forms of Business Organisation. This page offers a step-by-step solution to the specific question from Exercise 2: Extra Questions, Question 4: . With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.

Question 4:

Discuss the features of a Sole Proprietorship and its suitability for specific types of businesses.

Answer:

Features of a sole proprietorship include:
- Ease of Formation: Minimal regulatory requirements make it easy to start.
- Full Control: The owner has complete control over decision-making.
- Unlimited Liability: The proprietor is personally liable for all business debts.
- Single Ownership: The entire profit belongs to the owner.
- Lack of Legal Distinction: The owner and the business are legally the same entity.
Suitability: This form is ideal for businesses like retail shops, small-scale trading, and service-based businesses due to its simplicity and low operational costs.

Other Questions of Chapter Forms of Business Organisation

Analyze the factors influencing the choice of a business organization with examples.

Elaborate on the different types of cooperative societies and how they address specific needs.

Differentiate between a Private Limited Company and a Public Limited Company.

What are the advantages and limitations of a Partnership as a form of business organization?

List and briefly explain any two distinguishing features of a Joint Stock Company.

What is a Partnership Deed, and why is it essential?

What is a Sole Proprietorship? Explain its significance in small-scale businesses.

1. The structure in which there is separation of ownership and management is called
(a) Sole proprietorship (b) Partnership
(c) Company (d) All business organisations

2. The karta in Joint Hindu family business has
(a) Limited liability (b) Unlimited liability
(c) No liability for debts (d) Joint liability

3. In a cooperative society the principle followed is
(a) One share one vote (b) One man one vote
(c) No vote (d) Multiple votes

4. The board of directors of a joint stock company is elected by
(a) General public (b) Government bodies
(c) Shareholders (d) Employees

5. Profits do not have to be shared. This statement refers to
(a) Partnership (b) Joint Hindu family business
(c) Sole proprietorship (d) Company

6. The capital of a company is divided into number of parts each one of which are called
(a) Dividend (b) Profit
(c) Interest (d) Share

7. The Head of the joint Hindu family business is called
(a) Proprietor (b) Director
(c) Karta (d) Manager

8. Provision of residential accommodation to the members at reasonable rates is the objective of
(a) Producer’s cooperative (b) Consumer’s cooperative
(c) Housing cooperative (d) Credit cooperative

9. A partner whose association with the firm is unknown to the general public is called
(a) Active partner (b) Sleeping partner
(c) Nominal partner (d) Secret partner

Discuss the concept, features, advantages, and limitations of a Joint Stock Company.

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Study Tips for Answering NCERT Questions:

NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:

Read the question carefully and focus on the core concept being asked.
Reference examples and data from the chapter when answering questions about Forms of Business Organisation.
Review previous year question papers to get an idea of how such questions may be framed in exams.
Practice answering questions within the time limit to improve your speed and accuracy.
Discuss your answers with your teachers or peers to get feedback and improve your understanding.

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