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 Flashcard: Chapter Notes - Forms of Business Organisations 40 Flashcards |
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What is a sole proprietorship? |
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A business owned, managed, and controlled by a single individual who keeps all profits and bears all risks. |
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In a sole proprietorship, the owner has ___ liability. |
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Unlimited liability |
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List two merits of a sole proprietorship. |
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(i) Quick decision-making (ii) Full control over the business |
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What happens to a sole proprietorship if the owner dies? |
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The business may face closure due to lack of continuity. |
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True or False: A sole proprietor can easily transfer ownership. |
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False; transferring ownership of a sole proprietorship is difficult. |
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What is the primary source of capital in a Joint Hindu Family business? |
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Ancestral property |
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Fill in the blank: The Karta in a Joint Hindu Family business has ___ control. |
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Sole |
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What is a partnership according to the Partnership Act of 1932? |
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An association of individuals who agree to share the profits of a business conducted by any one of them. |
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What type of partnership is formed for a specific project or duration? |
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Particular partnership |
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Riddle: I am a business structure that requires at least two people and can last as long as we agree. What am I? |
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Partnership |
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What is a cooperative society? |
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An organization of voluntary individuals working towards a common purpose, registered under the Cooperative Societies Act. |
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In a public company, the minimum number of members required is ___. |
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Seven |
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True or False: The liability of members in a cooperative society is unlimited. |
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False; members have limited liability. |
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What document outlines the rules and regulations of a company? |
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Articles of Association |
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Fill in the blank: A sole proprietor enjoys all the ___ from the business. |
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Profits |
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What is the role of a promoter in a company? |
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To find business opportunities, conduct studies, and prepare necessary documents for incorporation. |
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How does a Joint Hindu Family business ensure continuity? |
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It continues as long as all members desire to keep it operational. |
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Riddle: I protect the interests of investors and invite them to invest in shares and debentures. What am I? |
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Prospectus |
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What can lead to the closure of a sole proprietorship? |
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The owner's death, illness, or bankruptcy. |
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List one limitation of a partnership. |
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Unlimited liability of partners. |
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Completed! Keep practicing to master all of them. |
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