1. ONE MARK QUESTIONS WITH ANSWER
12TH STANDARD COMMERCE
ONE MARK QUESTIONS WITH ANSWER
Prepared by:
R. RAJENDRAN, M.A., M.Sc.,M.Ed.,
R. THAMAS, M.Com.,M.Phil.,B.Ed.,
P.PAULPANDIAN, M.Com.,B,Ed.,

2. CHOOSE THE CORRECT ANSWER
What is the advantage of sole proprietor ship a. small capital b. hasty decision c. limited capital d. limited managerial ability

3. CHOOSE THE CORRECT ANSWER
Partnership may come into existence a. by the operation of law b. by an express agreement c. by an express or implied agreement d. by inheritance of property

4. CHOOSE THE CORRECT ANSWER
3. Registration is compulsory in the case of a. a sole trader b. a partnership c. a joint stock company d. a joint hindu family business

5. CHOOSE THE CORRECT ANSWER
4. The most suitable form of organisation for operating defence industries is a. Government company b. public corporation c. departmental organisation d. board organisation

6. CHOOSE THE CORRECT ANSWER
5. A multinational company is also known as a. global giant b. partnership c. co - operative society d. public corporation

7. CHOOSE THE CORRECT ANSWER
6. Sole trading business can be started by a. at least two persons b. at least seven person c. any one person

8. CHOOSE THE CORRECT ANSWER
7. The liability of a sole trader is a. limited only to his investment in the business b. limited to total property of the business c. unlimited

9. CHOOSE THE CORRECT ANSWER
8. “One man control is the best in the world” This statement is given by a. H. Haney b. William R. Basset c. Neil H. Jocoby d. The direction of government

10. CHOOSE THE CORRECT ANSWER
9. A partnership is formed by a. agreement b. relationship among person c. The direction of government

11. CHOOSE THE CORRECT ANSWER
10. The basis of partnership is a. utmost good faith b. money available for investment c. desire to work together

12. CHOOSE THE CORRECT ANSWER
11. A partnership firm may be registered under a act b act c act

13. CHOOSE THE CORRECT ANSWER
12. In partnership there exists a relationship of a. principal and agent b. owner and servant c. employer and employee

14. CHOOSE THE CORRECT ANSWER
13. Registration of partnership is a. compulsory b. optional c. not necessary

15. CHOOSE THE CORRECT ANSWER
14. The minimum number of members for a public limited company a. 2 b. 3 c. 7 d The liability of shareholders of a private limited company is limited to a. The paid up value of the shares b. amount remaining unpaid on the shares c. the extent of private assets d. amount called up

16. CHOOSE THE CORRECT ANSWER
16. The existence of a company comes to a close a. on the death of all its promoters b. on death of all the directors of the board c. on transfer of shares, by most of its original members d. none of the above

17. CHOOSE THE CORRECT ANSWER
17. The minimum subscription specified in the prospectus must be received with in a.90 days b. 120 days c. 130 days d.60 days

18. CHOOSE THE CORRECT ANSWER
18. Table A of the companies act is a a. model of minutes book b. model form of balance sheet c. model of articles of association d. model of memorandum of association

19. CHOOSE THE CORRECT ANSWER
19. Debenture holders of a company are its a. creditors b. members c. credit customers d. borrowers

20. CHOOSE THE CORRECT ANSWER
20. Every partner has the right to receive interest on loan and advances at the rate of ____% per annum a. 6% b.10% c. 12% d. no interest

21. CHOOSE THE CORRECT ANSWER
21. Shares can be forfeited for a. non - payment of any debt due to the company b. non attending three annual general meetings consecutively c. for non payment of call money d. for violent activities at the annual general meetings.

22. CHOOSE THE CORRECT ANSWER
22. A person can hold directorship of not more than _____ public limited companies. a. 10 b. 15 c. 20 d. limitless

23. CHOOSE THE CORRECT ANSWER
23. A company secretary is appointed by a. Government b. the institute of company secretaries of India c. The board of directors d. shareholders in annual general meetings

24. CHOOSE THE CORRECT ANSWER
24. The list of business to be transacted at the meeting is called a. agenda b. minutes c. resolution d. quorum

25. CHOOSE THE CORRECT ANSWER
25. First directors are appointed by a. members in statutory meeting b. members in the first annual general meeting c. by being named in the articles of association d. registrar of companies

26. CHOOSE THE CORRECT ANSWER
26. The interval between two annual general meetings shall not be exceed a.15 month b. 12 month c.18 month d. 20 month

27. CHOOSE THE CORRECT ANSWER
27. Which of the following must hold a statutory meeting? a. statutory companies b. private limited co s c. public limited companies d. chartered companies

28. CHOOSE THE CORRECT ANSWER
28. The first issues are floated in a. primary market b. secondary market c. commodity market d. regulated market

29. CHOOSE THE CORRECT ANSWER
29. An optimistic speculator is a. bull b. bear c. stag d. lame duck

30. CHOOSE THE CORRECT ANSWER
30. Securities contract regulation act was passed in a b c d. 1954

31. CHOOSE THE CORRECT ANSWER
31. Stock exchanges deal in a. goods b. services c. financial securities d. country’s currency

32. CHOOSE THE CORRECT ANSWER
32. Number of recognised stock exchange in India a. 2 b. 21 c. 22 d. 24

33. CHOOSE THE CORRECT ANSWER
33. A pessimistic speculator is a. stag b. bear c. bull d. lame duck

34. CHOOSE THE CORRECT ANSWER
34. A bull operator believes in a. increase in prices b. decrease in prices c. stability in prices d. no change in prices

35. CHOOSE THE CORRECT ANSWER
35. A cautious spectator is known as a. stag b. bull c. lame duck d. bear

36. CHOOSE THE CORRECT ANSWER
36. SEBI has the following number of members including chair man a. 5 b. 7 c.6 d. 8

37. CHOOSE THE CORRECT ANSWER
37. Co - operative society can be started a. only at villages b. it towns and villages c. only in cities d. only in urban areas

38. CHOOSE THE CORRECT ANSWER
38. The minimum number of members required to form a co - operative society is a. 2 b. 9 c d. 25

39. CHOOSE THE CORRECT ANSWER
39. Dividend is declared in a co - operative store to its members a. share capital b. number of shares purchased c. amount of patronage given d. none of the above

40. CHOOSE THE CORRECT ANSWER
40. Central co - operative bank is established at a. villages b. districts c. state head quarters d. urban areas

41. CHOOSE THE CORRECT ANSWER
41. A co - operative supermarket supplies a. credit b. service c. goods d. cash

42. CHOOSE THE CORRECT ANSWER
42. Consumer co-operation was first successful in a. England b. USA c. Swiss d. India

43. CHOOSE THE CORRECT ANSWER
43. Minority interest can be protected in a. sole trader b. partnership c. co - operative society d. public company

44. CHOOSE THE CORRECT ANSWER
44. In a government company the share capital of the government must not be less than a. 51% b. 60% c. 75% d. 90%

45. CHOOSE THE CORRECT ANSWER
45. Public corporations are managed by a ______ nominated by the government a. Board of directors b. Government servants c. directors d. committee of directors

46. CHOOSE THE CORRECT ANSWER
46. In a public corporation the management has a. limited freedom b. no freedom of action c. controlled freedom d. unrestricted freedom of action

47. CHOOSE THE CORRECT ANSWER
47. This organisation has Tax concession a. Departmental organisation b. Co-operative Society c. Government Company

48. CHOOSE THE CORRECT ANSWER
48. The overall maximum managerial remuneration in a Public Limited Company shall not exceed a. 11% if net profits b. 11% of paid up capital c. 5% of Net profits d. 5% of paid up capital

49. CHOOSE THE CORRECT ANSWER
49. Jobbers transact in a Stock Exchange a) For their clients b. For their own transaction c. For other brokers d. For other members

50. CHOOSE THE CORRECT ANSWER
50. Government companies are registered under a. Special statute of Government b. Companies Act c. Royal Charter d. Other of the Government

51. CHOOSE THE CORRECT ANSWER
51. Which of the following is not the characteristics of sole proprietorship a. Single ownership b. One man control c. Whole profit to proprietor ship d. non flexibility

52. CHOOSE THE CORRECT ANSWER
52. The agreement of partnership a. Must be oral b. must be writing c. must be writing in the stamp paper d. can be either oral or in writing

53. CHOOSE THE CORRECT ANSWER
53. Membership by birth is main feature in a. Sole Trader b. Joint stock company c. Joint Hindu family business d. Partnership

54. CHOOSE THE CORRECT ANSWER
54. In a co-operative society a. One share one vote principle to followed b. One man one vote principle is followed c. A member must have 2 votes d. Shares are transferable.

55. CHOOSE THE CORRECT ANSWER
55. Co-operative society can be started a. only in villages b. in towns and villages c. Only in cities d. Only in state head quarters

56. CHOOSE THE CORRECT ANSWER
56. Management of a joint stock company is entrusted to a. The Registrar of companies b. The Board of Directors c. The share holders d. The Debenture holders

57. CHOOSE THE CORRECT ANSWER
57. The oldest form of business organisation a. Sole Trading b. Partnership c. Joint stock company d. Co-operatives

58. CHOOSE THE CORRECT ANSWER
58. Decision making process in sole trading business is a. Quick b. Slow c. Neither quick nor slow

59. CHOOSE THE CORRECT ANSWER
59. Sole proprietorship is suitable for a. Large scale concerns b. Medium scale concerns c. Small scale concerns

60. CHOOSE THE CORRECT ANSWER
60. ________ described as an extension of the ‘Principle of Agency’ a. Partnership b. Sole Trading c. Joint stock company d. Co-operatives

61. CHOOSE THE CORRECT ANSWER
61. Sleeping Partner is also known as a. Active Partner b. Dormant Partner c. Nominal partner d. Sub Partner

62. CHOOSE THE CORRECT ANSWER
62. The maximum number of member for non-banking firm is ______. a. 2 b. 10 c. 20 d. 30

63. CHOOSE THE CORRECT ANSWER
63. The partnership partners are collectively ______. a. firm b. family c. company d. co- operative

64. CHOOSE THE CORRECT ANSWER
64. Which of the following is created by a special act of parliament or in state assembly a. chartered company b. foreign company c. Government company d. statutory company

65. CHOOSE THE CORRECT ANSWER
65. A private company can commerce business a. immediately on receiving the certificate of incorporation b. only after the certificate of commencement of business c. on getting name of approval from the registrar d. on filing all the documents necessary for formation with the registrar.

66. CHOOSE THE CORRECT ANSWER
66. Which of the following companies must file with the registrar a statement of lieu of prospectus? a. a public limited company which raises funds from the public through issue of shares. b. a public limited company which has made arrangement for raising its capital from directors and their relatives c. a private limited company d. all of them

67. CHOOSE THE CORRECT ANSWER
67. Where the shares are issued at a discount and the nominal value of share is Rs. 100, the maximum discount that can be allowed is a. Rs. 5 b. Rs. 10 c. Rs. 20 d. Rs. 15

68. CHOOSE THE CORRECT ANSWER
68. Which of the following document define a scope of a company’s activities? a. memorandum of association b. articles of association c. prospectus d. statutory declaration

69. CHOOSE THE CORRECT ANSWER
69. A preference share has priority in a. dividend only b. only in return on capital at the time of winding up c. voting rights d. both dividend and return of capital on winding up

70. CHOOSE THE CORRECT ANSWER
70. A company should compulsorily appoint a qualified company secretary, compulsorily having a paid up share capital of more than a. Rs. 5 lakhs b. Rs. 50 lakhs c. Rs. 25 lakhs d. Rs. 15 lakhs

71. CHOOSE THE CORRECT ANSWER
71. A partner who contributes capital and takes active part in the management is known as ______. a. sleeping partner b. nominal partners c. managing partner d. partners in profit only

72. CHOOSE THE CORRECT ANSWER
72. Debenture holders are entitled to receive interest in the following circumstances a. when there are profits b. when share holders also get dividend c. every year irrespective of loss d. all the above

73. CHOOSE THE CORRECT ANSWER
73. A director is acting as a. agent of the company b. trustee of the company c. chief executive officer of the company d. all of these

74. CHOOSE THE CORRECT ANSWER
74. The value of qualification shares of a direction in a public limited company shall not exceed a. Rs b. Rs 50,000 c. Rs. 5,00,000 d. Rs. 500

75. CHOOSE THE CORRECT ANSWER
75. _______ is run on the principle of “All is he and he is all in all”. a. the sole trading concern b. partnership c. joint hindu family d. co - operatives

76. CHOOSE THE CORRECT ANSWER
76. Which of the following business is not transacted at the annual general meeting. a. appointment of auditors b. issue of debentures c. appointment of directors in place of those retiring d. declaration of dividend

77. CHOOSE THE CORRECT ANSWER
77. The popular method of sale of new shares in India in a. public issue b. offer for sale c. managing brokers d. underwriting

78. CHOOSE THE CORRECT ANSWER
78. Stock exchange allow trade in a. all types of shares of any company b. bands issued by the Government c. listed securities d. unlisted securities

79. CHOOSE THE CORRECT ANSWER
79. SEBI in formed as per a. securities contracts ( Regulation) Act b. securities and exchange board of India act c. companies act d. Indian constitution

80. CHOOSE THE CORRECT ANSWER
80. Stock exchange _______ speculation in shares a. does not allow b. discourage c. encourage d. prohibits

81. CHOOSE THE CORRECT ANSWER
81. A stock exchange is a place to a. exchange one security for another b. buy and sell financial securities c. float new shares d. buy and sell stock of goods

82. CHOOSE THE CORRECT ANSWER
82. Maximum membership in a co- operative society is a. 50 b. 60 c d. unlimited

83. CHOOSE THE CORRECT ANSWER
83. Public can also subscribe to the share capital of a. public corporation b. departmental undertaking c. Government company d. none of these

84. CHOOSE THE CORRECT ANSWER
84. For the efficient working of state enterprise the form of organisation generally considered suitable is a. departmental organisation b. public corporation c. Government company d. none of these

85. CHOOSE THE CORRECT ANSWER
85. Indian telephone industries is the examples of a. departmental organisation b. public corporation c. Government company d . none of these

86. FILL IN THE BLANKS
86. Life insurance corporation of India is the example of _____________________. 87. The liability of sole trader is ____________________. 88. A sole proprietorship concern is generally run on a _________________________ scale basis.
Public corporation
unlimited
small

87. FILL IN THE BLANKS
89. Person who enter into partnership are collectively called _______________________________. 90. The maximum number of members in non - banking firm is ________________________________. 91. The partners liability in India is ____________________.
Firm 20
Unlimited

88. Unlimited
FILL IN THE BLANKS
92. _______________________ means the termination of the original partnership agreement. 93. The minimum number of members in a private company is ____________________________. 94. An advertisement inviting the public to buy the debenture of a public limited company is known as ______________________.
Dissolution of partnership 2
prospectus

89. FILL IN THE BLANKS
95. First directors are usually named in the ________________________________. 96. Directors act as _________________ trustees and officers of the company. 97. Altering the articles of association requires __________________ resolution.
articles of association
agents
special

90. FILL IN THE BLANKS
98. Auditors are generally appointed and their remuneration fixed at the ____________________ meeting. 99. Debentures denotes ___________________ interest Secondary market deals with ___________________ traded in primary market.
Annual General
creditorship
resale of securities

91. FILL IN THE BLANKS
101. BOLT is the online trading system in use at ________________ stock exchange The latin word co - operative mean ________________ Management of co - operative society is fully _______________ Exploitation of consumers and employees is a feature of ___________________.
Mumbai
to work with
democratic
Private sector

92. FILL IN THE BLANKS
105. The primary aim of state enterprises is _____________ Division of work is called ____________________ Broadcasting comes under _______________________ form of organisation Tamil Nadu electricity board is the example of _______________________.
Public welfare
Departmentation
Departmental
Board Organisation

93. FILL IN THE BLANKS
109. Public corporation is also known as ________________ A partner who does not take part in the working of the firm is called ______________________ partner An unregistered firm cannot enforce its claims against third parties for recovering a sum exceeding rupees _____________ _________________ is a right vested with a partner to be used in emergency situation to protect the interest of the firm.
Statutory corporation
sleeping partner
One hundred
Implied Authority

94. FILL IN THE BLANKS
113. The liability of a member of a company limited by guarantee is ____________________ The company which need not have separate articles of association of its own is __________________ company limited by shares The aggregate nominal value of qualification shares shall not exceed __________________ rupees.
limited
Public
5000

95. FILL IN THE BLANKS
116. Shares at a discount must be issued within ________________ months from the date of sanction by the central Government A person appointed to attend a meeting on behalf of a share holder is known as _________________________ The overall managerial remuneration in a public limited company shall not exceed ___________ % of net profit. 2
Proxy 11

96. FILL IN THE BLANKS
119. The quorum for a general meeting of members of a public company is ____________ _____________ act as intermediary to float new shares Application money should not be less than ____________________ percent of the value of a share Cleared securities are also called __________________ ____________________ are the employees of the members of a stock exchange. 5
Issue house
5 %
Securities on forword list
Authorised clerks

97. FILL IN THE BLANKS
124. ______________________ act as a substitute for initial public offering The father of the co- operative movement was _____________ Super market refers to large scale__________________ Service is the main objective of ___________________.
Mutual funds
Robert owen
retailing
Co-operatives

98. FILL IN THE BLANKS
128. In co- operative society only ___________________ of the profits to be distributed as dividend Public corporation are created by __________________ central or state Government The oldest form of public enterprise is ______________________ Public corporations are managed by a ____________________ nominated by the Government.
9 0r 14 %
special act passed by
Departmental organisation
Board of Directors

99. FILL IN THE BLANKS
132. In a Government company not less than ______ of the paid up share capital held by central or state Government The most suitable form of organisation for manufacturing defence goods is ____________________ Minimum subscription is fixed at __________________ of the issued capital Ready delivery contracts are also called as ___________________.
51 %
Departmental Organisation
90 %
Spot contracts

100. FILL IN THE BLANKS
136. Delegation means the ______________________ of part of the work Partners share profits and losses__________________ In India registration of partnership is _______________ A company is regarded as a ____________________.
entrustment
in an agreed ratio
Optional
Person by law

101. FILL IN THE BLANKS
140. Government policy is also favourable towards _________________ Government company employees are not ___________________ In co - operative society all members are _______________________ _____________________ acts as a stimulant for hard work in sole trading business.
Multinational companies (MNCS)
Government servants
equal
Fear of loss

102. FILL IN THE BLANKS
144. Coco cola corporation is the example of __________________ The profit and loss of a partnership firm is shared in the _______________________ among the partners Active partner is also known as ___________________ A partnership is formed by _____________________.
Multinational Company (MNC)
agreed ratio
Managing partner (or) working partner
agreement

103. FILL IN THE BLANKS
148. _________________ is a person who has not completed 18 years of age ____________________ can keep his business secrets Sole proprietor ship in suitable for ________________ The partnership agreement is also known as ___________________.
A minor
A sole trader
small scale concerns
Partnership Deed

104. FILL IN THE BLANKS
152. Where the ___________________ partnership can be terminated, if any partner notifies his desire to quit ___________________ is a temporary partnership which is formed to complete a specific venture or job during a specified period When a person makes an arrangement with a partner to share his profit, he is known as a ___________________.
Partnership - at -will
A joint venture
subpartner

105. FILL IN THE BLANKS
155. A partnership in which the liability of a partner is limited is called ___________________________ ___________________ability of a sole trader is limited In partnership the name under which the business is carried on is called _________________________ ___________ is not governed by any special legislation.
limited partnership
The managerial
Firm name
Sole trading

106. FILL IN THE BLANKS
159. __________________ mean dissolution of partnership General partnership is also known as ____________________ Sole trading business can be started by ______________________ person __________________________ document define the scope of activities of a company.
Dissolution of firm
Unlimited partnership
any one
Memorandum of association

107. FILL IN THE BLANKS
163. A private company should have atleast _______________directors Preference shares which carry a right to arrear divided are known as ____________________________ When a company has issued shares of qualification shares that a director should hold is _________________ The minimum number of members in a public limited company is _____________________________. 2
cumulative preference shares
Rs.5000 7

108. FILL IN THE BLANKS
167. East India company is the example of _______________ 168. Share holders are the _____________ of the company When the shares are issued at a price higher than its face value, it is called __________________________ Where debentures are to be redeemed after a specified period, they are known as _________________________.
Chartered company
real owners
Issue of shares at a premium
Redeemable debentures

109. FILL IN THE BLANKS
171. The forfeited shares can be reissued at a ____________ Every public limited company must compulsorily hold statutory meeting within________ month and not earlier than ______ month form the date to commence business The interval between two annual general meetings shall not exceed ______ month The notice calling the annual general meeting must be given to all its members at least________ days before the date of the meeting.
discount
6 months
one 15
21 days

110. FILL IN THE BLANKS
175. A statutory report must be sent to every member of the company atleast _____ days before the meeting is to be held The minimum number of members required for a meeting is known as ______________________ 177. A person cannot act as a managing director of more than ______________ companies at a time __________________ means 51% or more of the votes have been cast in favour of the resolution. 21
Quorum 2
Ordinary resolution

111. FILL IN THE BLANKS
179. Joint stock companies require _________________ ________________ is a document issued by a company acknowledging a debt due by it to its holders ___________________ is a commonly used method of issuing new shares ____________________ is an invitation to the public to subscribe of the shares.
Enormous Capital
Debenture
Public issue
Prospectus

112. FILL IN THE BLANKS
183. The volume of business in secondary market depends on ___________________ There are __________ regional stock exchanges in India Listing is ____________________ for public companies ________________ order gives a freehand to its brokers of a client to buy or sell a particular securities For any price.
Primary market 21
compulsory
Discretionary order

113. FILL IN THE BLANKS
187. Investors retains securities for _______________ period Stag is called _______________________ ________________ enables small investors to participate in the investment on share capital of large companies Large scale undertakings are originated in the form of _____________________.
Longer
Premium hunter
Mutual Funds
joint stock company

114. FILL IN THE BLANKS
191. The long term capital required by the company is divided into small units of fixed amount called _______________ Primary market is concerned with ________________ ____________ act as intermediary of float new shares After allotment of shares, allottes become the _______________ of the company.
shares
issue of new shares
Issue Houses
share holders

115. FILL IN THE BLANKS
195. Second hand securities are traded in _______________ Inclusion of securities in the official list of stock exchange is called _____________________ _____________________ are the employees of the members of a stock exchange _________________ is the supervisory body established to regulate Indian stock market.
Secondary market
Listing
Authorised clerk
SEBI

116. FILL IN THE BLANKS
199. __________________________ is known as stag The liability of the members of a co-operative society is ______________________________ An industrial co-operative is organised by _____________________________ consumers are the _____________________________.
Cautious Speculator
Limited
small scale producers
Kings

117. FILL IN THE BLANKS
203. Agriculture credit societies are classified into a) Rural credit society b) ____________________ When the Government takes over an existing private concern it is called ____________________________ Exploitation of consumers and employees is a feature of ________________________________ ______________________ is an undertaking owned and controlled by Government.
Primary credit societies
nationalisation
Private sector
State enterprise

118. FILL IN THE BLANKS
207. ________________ Checks concentration of economic power in the hands of few Where the authority to a partner is expressly conferred by an agreement, it is called ______________________ The person who contributes capital and manages the business is called as ____________________________.
Public sector
Expressed Authority
Sole trader

119. FILL IN THE BLANKS
210. The size of sole trading business remains _________________________ When a proposal placed before the meeting is passed by the meeting, it becomes _________________________.
small
a resolution

120. THE END