Tag: organization of commerce and management

Questions Related to organization of commerce and management

State the following statement is True or False:
A policy under which all assets (fixed and current) are insured is called blanket policy of Fire Insurance.

organization of commerce and management business risks and insurance marine insurance kinds of insurance re-insurance and double insurance

  1. True

  2. False

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Correct Option: A
Explanation:

Blanket policy is issued to cover more than one property or the assets in the property. Under such a policy, the fixed and current assets of a manufacturer or a trader available in different buildings can be covered with a single policy.

Select a word, term or a phase which can substitute the statements:
An insurance policy, covering goods of different types of lying at different places.

organization of commerce and management business risks and insurance marine insurance kinds of insurance re-insurance and double insurance

  1. Comprehensive policy

  2. Floating policy

  3. Fire policy

  4. None of these

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Correct Option: B
Explanation:

An insurance policy, covering goods of different types of lying at different places is known as floating policy. Payment for insuring the goods under floating policy can change from one period to another as the value of the insured goods cannot be calculated.

Identify which statement is true and which is false?
$1.$ Any person can become member of HUF.
$2.$ In a HUF business, in the event of death of any of the co-parcener, his wife can claim share of profit.
$3.$ In a HUF business, the liability of the karta is Unlimited.
Select the correct answer from the options given below.

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. $2$ and $3$

  2. $1$ and $3$

  3. $3$ and $2$

  4. None of above

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Correct Option: A

Any person can become member of HUF.

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. False

  2. True

  3. Partly true

  4. None of above

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Correct Option: A
Explanation:

Any person can become member of HUF-this is a false statement. In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.

The Hindu Undivided Family business governed by ______________.

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. Contract law

  2. Hindu law

  3. Muslim law

  4. Company law

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Correct Option: B
Explanation:

The Hindi Undivided Family business governed by Hindu Law. In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.

Which of the following statements is incorrect ?

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. The Partnership Act, 1932 does not prescribes the maximum number of partners in a firm

  2. An agreement to carry on business in future cannot be the basis of partnership

  3. A permanent business undertaking is not essential for the formation of partnership

  4. Members of H.U.F. who carry on business and shares profits among them are also treated as partners

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Correct Option: D

Which of these statements is true in respect of a Joint Hindu Family business?

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. Joint Hindu Family firm cannot have more than $10$ members

  2. Joint Hindu Family has a perpetual existence

  3. Liability of Manager is limited

  4. Consent of all the members is necessary to admit a new member

Show answer
Correct Option: B
Explanation:

The firm enjoys continuity of operations as its existence is not subject to the death or insolvency of a co-parcener or even of the Karta himself. Thus, it has a perpetual life like the public limited company.

Which of these is not true _________.

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. In JHF a karta has unlimited liabilities

  2. Joint Hindu Family business is covered by Hindu law

  3. A minor cannot be a member of Joint Hindu family business

  4. In Joint Hindu family all the powers are vested in the karta

Show answer
Correct Option: C
Explanation:

The basis of membership in business is birth in a particular family. As soon as a child (boy or girl)  born into the family, he becomes a member and ceases to be a member by death. Hence, there is no age limit for membership in Joint Hindu Family business. 

A HUF should be registered with ___________.

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. Not required at all

  2. Registrar of societies

  3. Registrar of firms

  4. Registrar of companies

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Correct Option: A
Explanation:

A HUF need not be registered. To begin a Hindu Undivided family business there must be minimum of 2 related family members, there must be ancestral property that they have inherited. 


There is no need for registration and documentation and admission of new member is by birth.

Karta of HUF is the ________ of his family.

organization of commerce and management ownership structures - sole proprietorship and joint hindu family business hindu undivided family business introduction to huf joint hindu family business

  1. creditor

  2. representative

  3. employee

  4. none of the above

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Correct Option: B
Explanation:

A Hindu Undivided Family is regulated by the Hindu succession Act. It consists of karta the head of the family and co-parceners, the members of the family. Hence, Karta of HUF is of his family representative.