What are the advantages and limitations | 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 5: . 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 5:

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

Answer:

Advantages:
- Shared Responsibilities: Tasks and responsibilities are distributed among partners.
- Combined Resources: Partners contribute financial and managerial resources, enhancing business potential.
- Flexibility: Less regulatory compliance compared to companies allows operational flexibility.
Limitations:
- Unlimited Liability: Partners are personally liable for debts, which poses significant risks.
- Conflicts: Decision-making differences may lead to disputes among partners.
- Limited Growth: Partnerships face constraints in raising large amounts of capital.

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.

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

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

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.

Popular questions of class 11 Business Studies

What factors are to be considered while starting a business? Explain.

Discuss the development of indigenous banking system in Indian subcontinent.

What were the different types of Hundi in use by traders in ancient times?

Define Industry. Explain various types of industries giving examples.

Why is business considered as economic activity?

List the major exports and imports in ancient India.

Define business. Describe its important characteristics.

State the different types of economic activities.

Discuss the limitations of electronic mode of doing business. Are these limitations severe enough to restrict its scope? Give reasons for your answer.

Evaluate the need for outsourcing and discuss its limitations.

Recently Viewed Questions of Class 11 Business Studies

Discuss the development of indigenous banking system in Indian subcontinent.

Discuss the benefits and limitations of e-business in detail.

Explain any five objectives of business.

Define business. Describe its important characteristics.

Define business ethics.

What are the features of a Joint Venture?

What are the different types of business activities?

What is e-business?

Describe various types of insurance and examine the nature of risks protected by each type of insurance.

Describe briefly any two applications of e-business.

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.

Latest Blog Posts

Stay updated with our latest educational content and study tips

Understanding Procrastination and Why Students Delay Studying | How To Fix It

One of the challenging things students face nowadays is procrastination. It hinders productivity, making it difficult for students to score well. We often associate procrastination as just being lazy. But there’s more to it. Various studies have shown that procrastination stems from negative feelings such as stress and anxiety. Oftentimes, when we start, we think […]

Effective Tips to Avoid Nervous Breakdown during CBSE Board Exam

The CBSE Board Exam is a crucial milestone for millions of students across India. The Central Board of Secondary Education is famous for its imparting quality education and knowledge which reaches out to a large share of students. Also, it is important to know that, the CBSE board takes a slight unconventional route, since it […]

HSSC CET Haryana 2025: Admit Card, Exam Dates, Fees, and More

Haryana government issued a notification on 31st December 2024 through its Gazette notification No. 42/119/2019-5HR-II for CET Haryana 2024. The Common Eligibility Test (CET) for Haryana is a significant opportunity for candidates seeking government jobs in Group C and Group D posts. Below is a comprehensive summary of the key information you need to know […]

Why Sleep is Crucial for Memory Retention and Learning?

Sacrificing your sleep to study more is doing more damage than you think. While it may seem like utilizing every hour of the day for study leads to better outcomes, the reality is quite the opposite. Lack of proper rest can negatively impact your brain, especially when it comes to sleep and memory retention. You’ll […]

View All Blog Posts