Industrial Management Questions and Answers – Types of Industrial Ownership

This set of Industrial Management Multiple Choice Questions & Answers (MCQs) focuses on “Types of Industrial Ownership”.

1. Which of the following is an example of the ‘Sole proprietorship’?
a) Infosys Ltd.
b) Marriot Hotels Pvt Ltd.
c) Microsoft Corporation (India) Private Ltd.
d) Sanfoundry (one founder)
View Answer

Answer: d
Explanation: Infosys Ltd. is a public limited company. Marriot Hotels Pvt. Ltd. and Microsoft Corporation (India) Private Ltd. are Private limited companies. Sanfoundry is a single ownership business organisation as it has only one founder.

2. Which of the following is an example of a public limited joint-company?
a) Bharat Petroleum Corporation Ltd.
b) Microsoft Corporation (India) Private Ltd.
c) Marriot Hotels Pvt Ltd.
d) Infosys Ltd.
View Answer

Answer: a
Explanation: A public limited company will have only limited at the end of its name. Companies like Bharat Petroleum Corporation Ltd., Wipro Ltd., and Indian Oil Corporation Ltd. have only limited at its end and hence they all public limited companies.

3. Which of the following is related to the sole proprietorship?
a) Single ownership
b) Partnership
c) Co-operative societies
d) Public Limited joint-company
View Answer

Answer: a
Explanation: Single ownership, Individual ownership, Individual entrepreneurship or Individual entrepreneur organisation, Individual proprietorship are the other names for the sole proprietorship. Only one individual can invest in sole proprietorship organisation and he is solely responsible for everything.
advertisement
advertisement

4. Which of the following types of ownership can have 100% secrecy?
a) Single ownership
b) Partnership
c) Joint-stock companies
d) Co-operative societies
View Answer

Answer: a
Explanation: Single ownership can have 100% secrecy as there will be only one founder who takes care of the organisation and is solely responsible for all the activities of the organisation. Other ownerships namely partnership, joint-stock companies and co-operatives will have more than one investor. Hence, compared to all other ownership organisations single ownership have more chances of maintaining 100% secrecy.

5. How many types of partners are there in partnership organisation?
a) Two
b) Four
c) Five
d) Three
View Answer

Answer: b
Explanation: Partnership organisation will have partners who are of types. They are as follows:
i. Active partners
ii. Sleeping partners
iii. Nominal partners
iv. Secret partners

6. Partners who invest and actively take part in the daily operations of the firm are called ________
a) Active partners
b) Sleeping partners
c) Nominal partners
d) Secret partners
View Answer

Answer: a
Explanation: An active partner in a partnership organisation not only invests the capital but also takes part in the day-to-day operations of the firm. They participate in the formation of policies and take part in the management of the organisation.

7. Match the following.

p) Active partner	         i) Only shares profit/loss
q) Sleeping partner	 ii) Invests and works
r) Nominal Partner	 iii) Doesn’t invest
advertisement

a) p – ii, q – i, r – iii
b) p – ii, q – iii, r – i
c) p – iii, q – i, r – ii
d) p – i, q – ii, r – iii
View Answer

Answer: a
Explanation: An active partner in a partnership organisation not only invests the capital but also takes part in the day-to-day operations of the firm. They participate in the formation of policies and take part in the management of the organisation. Sleeping partner invests the capital and doesn’t take part in management activities. They only share profit/loss. Nominal partner neither invest the capital nor take part in management activities. They lend their reputation to the company.

8. Which of the following is not another name of an active partner?
a) Working partner
b) Managing partner
c) Nominal partner
d) Corporation
View Answer

Answer: c
Explanation: Working partner and managing partner are other names for an active partner. A nominal partner is one who neither invests the capital nor takes part in management activities. They lend their reputation to the company.
advertisement

9. Who is also known as ‘Silent partner’?
a) Sleeping partner
b) Working partner
c) Managing partner
d) Nominal partner
View Answer

Answer: a
Explanation: Sleeping partner is another name for silent partner. Working partner and managing partner are other names for an active partner. A nominal partner is one who lends their reputation for the company.

10. Match the following.

p) Secret partner	         i) Active partner
q) Working partner	 ii) Name is not known to the outer world
r) Sleeping partner	 iii) Silent partner

a) p – ii, q – i, r – iii
b) p – ii, q – iii, r – i
c) p – iii, q – i, r – ii
d) p – i, q – ii, r – iii
View Answer

Answer: a
Explanation: Secret partner is one who takes part in management activities secretly but not revealed to the outer world. A working partner is also known as an active partner. Sleeping partner is also known as a silent partner.

11. Among the following options, choose the one that is related to a Private limited joint-stock company.
a) Microsoft Corporation (India) Private Ltd.
b) Coal India Ltd.
c) Hindustan Petroleum Corporation Ltd.
d) NTPC Ltd.
View Answer

Answer: a
Explanation: Coal India Ltd., Hindustan Petroleum Corporation Ltd. and NTPC Ltd. are public limited companies as they have only Ltd. at its end. Private limited joint-stock company will have “Private Limited” written at its end. Hence, Microsoft Corporation (India) Private Ltd. is a private limited joint-stock company.

12. Find the odd one out.
a) Shareholders
b) Partnership organisation
c) Active partners
d) Sleeping partners
View Answer

Answer: a
Explanation: Except shareholders, all other options are related to partnership organisation. Partnership organisations will have four types of partner namely, active partners, sleeping partners, nominal partners and secret partners. Shareholders are related to joint-stock companies and co-operative organisations.

Sanfoundry Global Education & Learning Series – Industrial Management.

To practice all areas of Industrial Management, here is complete set of 1000+ Multiple Choice Questions and Answers.

advertisement
advertisement
Subscribe to our Newsletters (Subject-wise). Participate in the Sanfoundry Certification contest to get free Certificate of Merit. Join our social networks below and stay updated with latest contests, videos, internships and jobs!

Youtube | Telegram | LinkedIn | Instagram | Facebook | Twitter | Pinterest
Manish Bhojasia - Founder & CTO at Sanfoundry
Manish Bhojasia, a technology veteran with 20+ years @ Cisco & Wipro, is Founder and CTO at Sanfoundry. He lives in Bangalore, and focuses on development of Linux Kernel, SAN Technologies, Advanced C, Data Structures & Alogrithms. Stay connected with him at LinkedIn.

Subscribe to his free Masterclasses at Youtube & discussions at Telegram SanfoundryClasses.