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
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
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
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.
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
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
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
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
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
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
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.
9. Who is also known as ‘Silent partner’?
a) Sleeping partner
b) Working partner
c) Managing partner
d) Nominal partner
View Answer
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
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
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
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.
If you find a mistake in question / option / answer, kindly take a screenshot and email to [email protected]
