Solution of Chapter 2. Forms of Business Organisation (NCERT - Business Studies Book)

The structure in which there is a separation of ownership and management is called

The Karta in Joint Hindu family business has

In a cooperative society, the principle followed is

The board of directors of a joint-stock company is elected by

Profits do not have to be shared. This statement refers to

The capital of a company is divided into some parts, each one of which is called

The Head of the joint Hindu family business is called

Provision of residential accommodation to the members at reasonable rates is the objective of

A partner whose association with the firm is unknown to the general public is called

Compare the status of a minor in a Joint Hindu family business with that in a partnership firm.

If registration is optional, why do partnership firms willingly go through this legal formality and get themselves registered? Explain.

State the important privileges available to a private company.

How does a cooperative society exemplify democracy and secularism? Explain.

What is meant by ‘partner by estoppel’? Explain.

Briefly explain the following terms in brief.

(a) Perpetual succession (b) Common seal

(c) Karta (d) artificial person

What do you understand by a sole proprietorship firm? Explain its merits and limitation?

Why is partnership considered by some to be a relatively unpopular form of business ownership? Explain the merits and limitations of partnership.

Why is it important to choose an appropriate form of organisation? Discuss the factors that determine the choice of the form of organisation.

Discuss the characteristics, merits and limitation of the cooperative form of organisation. Also, describe briefly different types of cooperative societies.

Distinguish between a Joint Hindu family business and partnership.

Despite limitations of size and resources, many people continue to prefer sole proprietorship over other forms of organisation? Why?

In which form of organisation is a trade agreement made by one owner binding on the others? Give reasons to support your answer.

The business assets of an organisation amount to Rs. 50,000 but the debts that remain unpaid are Rs. 80,000. What course of action can the creditors take if

(a) The organisation is a sole proprietorship firm

(b) The organisation is a partnership firm with Anthony and Akbar as partners. Which of the two partners can the creditor’s approach for repayment of the debt? Explain giving reasons

Kiran is a sole proprietor. Over the past decade, her business has grown from operating a neighbourhood corner shop selling accessories such as artificial jewellery, bags, hair clips and nail art to a retail chain with three branches in the city. Although she looks after the varied functions in all the branches, she is wondering whether she should form accompany to better manage the business. She also has plans to open branches countrywide.

(a) Explain two benefits of remaining a sole proprietor.

(b) Explain two benefits of converting to a joint-stock company.

(c) What role will her decision to go nationwide play in her choice of a form of the organisation?

(d) What legal formalities will she have to undergo to operate business as a company?