Forms of Business Organisatic Xai oo the shape of reality after passing ;, Sole propre) and partiership idea but has taken the shape of a running Prureai § Cah be started just after completing the er udy hs tba fil formalities are needed to be fulfilled. select “ant decision inthe ean tion of the form of business organisation is the os ey ot owners Ci) Faeligpin mation tana Bade che econ. : lexibility. (vii) mntiniuity and Stability, (v) Tax Liability. (vi) Managerial ‘ors to be Consii f , Secrecy.(xi) Government control. , iY . 4, Form of, se nel 7. Financial ital, (ii) Determination of Sources of ren i) Timingand P v i f : Ri ‘ ae sets, 9. Plant Layout, 10, Launching Objective Type Questions: ~~}, Which of the follow. (a) Private Sect or. * o) Mixed Sector Z i met Profits do not ee ihe ove, rts a) Partnes ) Solé Proprietor 5, Which of the follow sector? (a) Sole Proprie (c) Partner fe Scanned with CamScanner8. The maximum number of partners allowed in-the banking business are: vs, New (10 awys0 ys (© 100 a . ir 9. A partner whose association with the firm is a, Pron 2) Active Partner (b) Sleeping Partner obie ©) Nominal Partner SSoAGret Partner a) 10. Which of the following can be a partner? a a) Firm (b) Company 2s. Ti Ridividual (4) All of the above i I Which of the following is the advantage of arene a {@) More financial resources (b) Easy formation a © % st Lara of the above 6 ¥ 12; Which is the maximum number of partners ina non-banking partnership firm? @10 re o7.¥ (©) 100 Y 13. Which of the following is not cover ‘a (a) Active Partner (b) Sleeping Partner dk (Secret Partner / yb-Pariner by Holding out ; 14, The partner who neither invests money nor has a share in the profit and loss and , hhas no role in the administration of the firm is known as ae Biccs Nominal Partner (b) Partner by Holding out i, ~~ (o) Limited Partner (@) Minor Partner 15. Which of the following is the liability of a mjnor partner? ne (a) Unlimited H? Bey tanith 508 (No Lisblity (@) None of the above 0 issues the ‘Certificate of Registration’ to a firm? o ‘State Government jentral Government : égi (@/None of the above head of the Joint Hindu Family Business is popularly known as p (b) Director (d) Manager "Karta? in the Joint Hindu Family Business has =. = a) Limited Liability ‘limited Liability No Liability for Debts (@) Joint Liability ‘which of the following states the ‘Dayabhag” school of the Hindu Law is appl fa) Assam: (b) Bengal (©) Odisha “4ATAll of the above 20. Which of the following is not the advantage of the Joint Hindu Family Busine: : (a) Fasy to Start : pr Tinited Resources ; {Secrecy (4) Direct Contact with Customers 21, ‘Limited managerial skill is the «wwe of Joint Hindu Family Business. pias (b) Advantage ie aw © (fLimitation (@) Noneoftheabove scien sity the in ans. ue sha nemanone vote FF compan to ccteiaps had Scanned with CamScannerjame the business organisation which has the feat © of ‘Separate Legal Enti Sole Proprietorship, (b) Partnership, ty () All Business Organisations Provision of residential accommodation « objective of {@) Producers’ Coop ® the members at reasonable rates is the A {b) Consumers! Cooperative BE sng Coppa (@) Gredlt Cooperauve (NCERT] ic principle of cooperation ‘Each for all and all for each’ is followed by one of 1ess organisations, Whi (b) 20 7 “oe (a2 Which cooperative society aims at ‘providing regular market to the members’? {a) Copsumers’ Cooperatives (b) Producers’ Cooperatives ‘operative Marketing Societies (d) Cooperative Credit Societies Which of the following is not the advantage of cooperative societies? {a) Stability oy Pofia Interference {o) Democratic Management (a) Tas Advanta Which of the following is not the limitation of cooperative societies? {@) Lack of Capital (b) Incompetent Management ‘Conomic Decentralisation (d) Cash Trading The structure in which there is separation of ownership and management is called (a) Sole Proprietorship (b) Partnership 4e-Coinpany (2) All business organisations [NCERT] . In which type of business organisation ‘Perpetual Succession’ is found? ff Company (b) Partnership (©) Sole Proprietorship (4) All of the above . The capital of the company is divided into number of parts, each one of which is called (a) Dividend (b) Profit (©) Interest {d-Share }. Which of the following is not an advantage of company organisation? Difficulty in formation (b) Huge financial resources (©) Efficient management (d) Limited liability i. Which of the following has the advantage of ‘continuity’. (a) Sole Proprietorship (b) Partnership ‘Company (d) All business organisations 35. The maximum number of members in a private company is (7 (b) 10 (© 20 LPO 6. The minimum amount of paid-up capital for a public company is determined at ANF Five lakh (b) & One lakh (© @ Ten lakh (d) None of the above + The minimum amount of paid-up capital for a private company is determined at Two lakh, (b) & Five lakh (0 © Ten lakh __-esiie of the above : ‘Scanned with CamScanner [NCERT] 37.Business Studies sfer of shares? estriction on the tr 38. In which type of company there i “EAT Pathe Company {hy Private Company (©) Both (a) and (b) ART Sone ofthe above 39, What is the number of directors ina public company? (a) Five . 40. 1 of directors ofa joint stock company is elected by (a) General Public (b) Government Bodies 46F Shareholders () Employees ‘mum number of members to form a private company is 8 (d)7 mum number of members to forma plc company is 6) (c) 12 (d) 21 43. Applicasi mn for approval of name of a company is to be made to fey SEBI (b) Registrar of Companies (©) Government of India (d) Government of the State in which company is to be registered 44. A proposed name of the company is considered undesirable if (a) It is identical with the name of an existing company {b) It resembles closely with the name of an existing company (c) Itis an emblem of the Government of India, the United Ni +dyAny of the above 45. A prospectus is issued by (@) A private company __ 457A public company seeking investment from public _ (A public enterprise A public company Stages in the formation of a public company are in the following order a) Promotion, Commencement of Business, Incorporation, Capital Subscription yrporation, Capital Subscription, Commencement of Business Promotion, Incorporation, Capital Subscription, Commencement of Business (d) Capital Subscription, Promotion, Incorporation, Commencement of Business IN 47. Main documents to be filed with the Registrar are (a) Memorandum of Association (b) Asticles of Association (c) List of Directors “All of the above In the absence of Articles of Association «jms applies. © (b) Table B (@) Table D bility’ which of the following business organi _ (b) Partnership _ © {@) All the business organisations Scanned with CamScanner—————————— Forms of Business Organisatio Which of the following business. angle? (a) Company (©) Both (a) and (b) Which of the following busin i Mew of continuity? ne renal ‘Company b) Partnes (©) Sole Proprietorship (Allo bo Which of the following is the factor to be considered while s {a) Selection of business ~. ) Scale of business {c) Place of business ~ Atty ATMof the above What is to be considered while selecting the place of business? (a) Region (b) Locality for Borh (a) and (b) (4) Capital Be .2.c), -Sibmsabmss d 14a 15%b 1c 17, b 2%6.a 2c 2b 29, d c Organisations is the most suitable from the ‘formation’ Sole Proprietorship (d) Partnership sations is the most suitable from the point of tarting a business? 6d TacBb?9d Ie Id 12b 18.b 19d 20.b 2lc 22b 23.c 24.0 30.c 3la 32d 33.a 34.c 35.d 36a 38a 39.b 40.c dia 42.b 43.b 44d 45.b 46.c 77d 48.0 cc 50.b Sa 52d 53, ‘Short Answer Type Questions |. “Control by a single individual is the best in the world if that person is so capable of managing all the affairs by himself.” This statement refers to which type of business ~ organisation? This statement is related with sole trade. . What does a ‘Sole Management’ mean in a sole trade? Managing single-handedly and having a manager if required. . “He enjoys all gains and bears all losses.” ‘To which business organisation is this statement related? This is related with sole trade. 4, Which organisation gives the benefit of personal contact with the customers? The sole trade organisation gives this benefit. 5. On how many members’ demand the division of Joint Hindu Family can be allowed? On the demand of all the members. 6, Write an advantage of Joint Hindu Family Business. Advantage of inheritable qualities. 7, Inalimited partnership how many partner/partners with unlimited liability is/are required? One Partner. aApnos 8, Write any one condition under which a partnership is considered illegal. is. If the objective of the partnership is illegal. 9, Write any one limitation of partnership. . Lack of Public Faith, 10. Apart from getting profit what else can the partners of the firm get? s- Interest, Commission and Salary, 11, Name the document that contains all the terms and conditions of running the partnership. . Itis known as Partnership Deed. ‘Scanned with CamScannerlh —— en Q-12. Who can be a member of the Farmer's Cooperative Society? ‘Ans. Q13, Ans. One Hun . Q. 14. ‘Removing the middle-men’ which cooperative society has it as its motto’ (Ass. Consumers’ Coc Soc Q. 15. Which Cooperative society 2 members? Ans Cooperative Sée In which business organisation the advantage of availability of more resources and continuity of business is available? It is available in company organisation. a Who is primarily responsible for the lack of secrecy in a company organisation? The p! f accounts is responsible for it . Whose name is inscribed on the common seal of the company 5. On it the name of company is inscribed ).. Name the representative elected by the shareholders for running the company. They are ). In which business organisation there is a lack of motivation? In company organisa . If it is important to maintain secrecy in some business, which business should be selecte tuation, Sole trade is most suitable. .. In which business organisation, there is more freedom from government control? 5. In sole trade. . If the scale of production has to be large, which business organisation will be m suitabl Ans. In this situation, company organisation is suitable ‘Q. 24. From the point of view of flexibility which business organisation is suitable? ‘Ans. Sole Trade. Q. 25. While choosing a business what should be kept in mind? ‘Ans. Amount of risk and rate of profit. Q.26. What do we call the first stage of the formation of a company? ‘Ans. Promotion. Q, 27. What is the father of a company called? "Ans. Promoter. ai formation of a company. Memorandum of Association. ‘Write the full form of CIN. Corporate Identity Number. - Write one effect of the incorporation of a company? rate company can begin its own business. subscription? Scanned with CamScannerForms of Business Organisations ect clauses dum of Association explains the rights of a company? hat is obligatory to be wri ee Limiedl Men at the end of the name of a Private Company? “tamara ss 8 document of the memorandum of Association. Can a private company issue its Prospectus? No. Is it obligatory for a public com No. ‘When is the statement in lieu of prospectus issued? Inthe event of a public company not issuing the prospectus, rks Questions [What isthe meaning of the form of business organisation? Discuss whether the sole proprietorshi its formation. Discuss w business. Write any three limitations of the Sole Trade. Define Partnership. Can a minor be admitted as a partner in a firm? . What is the minimum & maximum number of partners in a partnership firm? Is registration of partnership necessary? |. In which situations a partnership is called illegal? ). Who can be a partner in the partnership? |, What do you mean by Active Partner? . Outline the meaning of Partner by Holding Out . Write the names of two communities of Hindu Law. Who is the manager of the joint Hindu Family Business? What are his rights? . Under what law the Joint Family system is regulated? }. What is the responsibility of the members of the Joint Hindu Family (leaving the Karta)? . Does the joint Hindu Family Business decline with the death of a member? Can a minor become the member of a Joint Hindu Family Business? ). Define cooperative organi |. Mention the maximum and minimum number of members in Cooperative Societies. Il. Enumerate the various types of cooperative societies . Who are the creator of Producer's cooperative societies? }. Write two objectives of the coopertative marketing societies 4. Name two functions of the cooperative credit societies. . Write one main feature of the cooperative farming societies, 6. “A cooperative society is not set up for making profit.” Discuss, 7. Explain how a cooperative organisation is a democratic institution. 8. Name the office bearers of cooperative societies. 9. How is the formation of a cooperative society easy? P hy Scanned with CamScanner any to issue its prospectus? p involves lengthy and expensive procedures for hether the liability of a sole Proprietor is limited to the extent of his share in ion.Business Studies Q.30. How the cooperative societies get state patronage? Q.31. Define Company onganiss Explain how the comp: y isan artificial person. fected by the death ofa member. |. Discuss whether a company’s existence is al f |. Why is the public is more confident about company organisation? . How is a company affected by oligarchie management? 36. Make a list of six private companies of Indian private sector: Make a list of six public companies of Indian private sector. 4 Mention the minimum amount of paid-up capital in private and public companies, J. Who is a Promote ‘Name the stages in the Formation of a Company. inimum Subscription’. Explain the term List the documents required for the Q ‘Name different clauses of the Memorandum of Association. Q. 44. With which type of companies the word ‘Private Limited’ is used? \corporation of a company. IN Q.45. What is the difference between Memorandum of Association and the Articles Q.2 Association on the basis of Subject-matter? — Q. 46. Mention the objects of the Prospectus. Clarif of the contract he given some por hhereas to become a partner of tf ans. No, a firm, the following conditions have to be fulfilled: becat Relationship ence of Business yA (ii) Division of Profit i ii) A 4. You are a Business Consultant. Mr, Kumar has recently retired from Governm A Service. He is 58 year old and he wants to set up a factory in order to manufac st plastic goods, He has come to consult you so that you may suggest to him a i Form of business organisation. The following are his main expectations from business organisa (i) Easy Formation Gi) Flexibility in operation Gi) Sharing of profits with limited persons iy) Sufficient persons to look after various business activities. a ‘Which form of business will you suggest to Mr. Kumar and why? op ns. {will sugygestto Mr, Kumar to set up a partnership organisation, because: ganis 9-2 So "fulfils ll his expectations, for example: a “G) Setting up this form of organisation is quite easier than company organisation. re 3 Since the number of partners i limited, operational decisions can easily be chan “i In such an organisation sharing of profits is with limited persons. q v ‘of persons to look after the different business activities is more than o 3 Mark ‘Order Thinking Skills (HOTS) “ 2 oe 1 properties of a Sole Proprietor ¢ wer personal ” To which of the characteristics of ae, pratt wil 1 {eek bo iaobute 2 x Pvt. Lid, made/formed a society/committee. The and constructed flats on it for its members, : Toate Scanned with CamScannerForms of Business Organisations Which Form of the Business Organisati «at-Hindu Family Business. ion gives all the rights to a Minor Member? JF the properties of a company are insufficient t i to rey II the debts, can the balance amount be repaid wih the private properties ofthe dlinbied ofa cotapeny? No. vat ause the liability of the members of a company is limited upto the face value of the shares, Which of the certificates is known as the Birth certificate of the company? Gertificate of Incorporation, ks Questions |. How can a person identify whether a company is a Private Co. or a Public Co.? (i) The name of a Private Co. always ends with the words Private Ltd., viz., Ram Pvt. Ltd (ji) The name of a Public Go. always ends with the word Ltd., viz., Liberty Shoes Ltd . Is it obligatory for a company to file its prospectus to the Registrar of company? Clarify. No, a company does not need to file its prospectus to the Registrar of company, because (i) APrivate Co. cannot get money from the public. Hence it does not need a prospectus. {ii) A Public company, which does not want to get any money from the public, does not need a prospectus. (But in this situation it has to file to the Registrar of company a statement in lieu of prospectus) i Evaluation/Value-based Questions. ark Questions Win order to set up a Manufacturing Business the choice of the site was done in a residential area. Which values are being violated by the concerned business man? (i) Environmental Safety (ii) Health Safety . Some persons joined together and set up a Consumer Cooperative Society in order to get rid of the exploitation by businessmen and commission agents. Which social values are being influenced by such an approach of these persons. {i) The safety of the interests of economically poor people of society. (ii) Economic centralisation. rks Questions | Alka, Komal and Kamal are partners in a Firm. Kamal uses 720 Lac of the Firm, without any information to the other partners, to purchase a house and he earns a profit of @five Lac on it. Which values are being violated here? Also tell, what will happen to the profit earned by Kamal? . (A) The following values are being violated: (i) Integrity. Gi) Honesty. (iii) Mutual Trust. (B) Treatment of Profit: Kamal will have to return both the Firm’s money and the profit earned on it, Now this profit will be regarded as the profit of the Firm. Scanned with CamScannerBusiness Staies 2. Akhil, Bhawna and Chanchal join together and set up a Partnership Organisati They do the Wholesale Trade of ‘Ghee’, ‘Sugar’ and ‘Pulses’. They got a Prepared, which stated the different terms and conditions in order to run «i ‘ Partnership organ n smoothly and properly. Tell the name of the document prepared. Also clarify the values this document safegual Mrs Ans. (A) The name of this document is ‘Partnership Deed’. (B) The ‘Partnership Deed’ safeg (i) Transparency Proof 5 Marks Question ards the following values: (ii) Awareness Q. 1. ‘From some points of view the Sole Trade appears successful, but certain other make it seem unsuccessful’, Evaluate this statement. Ans. (i) This statement is quite true, Some issues make the sole trade better than other fo 7 of Business Organisations. (Clue: To clarify this statement, point out any two advantages of Sole Trade). 4 Gi) This statement is also quite true that certain issues make the sole trade weaker other Business Organisations. (Clue: To clarify this statement point out any two limitations of Sole Trade.) Conclusion: To conclude, it may be said that for small scale business, this form business is the most useful of all other forms of business. Miscellaneous Case Studies. 1, Bhawna and Niharika both have completed their B.Com. st business organisation. They consulted several people regarding the form of the business organisa «and. finally, they selected the form of their business organisation. Now, they are mowing to set ‘They are not ina hurry io set it up. They believe i, “slow and steady wins the race”. see belief, at firs, they thought about each and every issue separately. Bhawna decided: to contact Employment Agencies, Educational Institutions and Trade Unions. Silay, Niharika took her hand the job of determining the amount of capital required and the resources of capital Ans. af them completed their work very quickly. Now they are thinking about completing the remai jobs. : udies and now they want toe ‘The above paragraph is concerned with the things to be taken care of at the starting a business. Identify the issues Bhawna and Niharika have in their view. Ans. (i) Bhawna : The Arrangement of employees ; (ii) Niharika: Financial Planning 2, Mr Ravi Kumar is a sole proprietor. He has been doing the wholesale business of ars, The Brand Name of hs tea is ‘Kadak’. This is a popular brand of its region. For so been worried about tan issues. First his business onganisaton comes n thea ctr; s0 people ave litle faith in him, For example, if he wants to buy goads on cre is unable to do so easily. Similarly if he wants to get a loan from do so on very hard terms. Such a treatment by the people With this problem in hand, he ct esuggess such away out as removes all the problems of Ravi, Rai uit , aAPiIo teounas iT 48 i Mr Ravi Kumar by the nd Uw sitong asl AU -might have been given to Scanned with CamScanner‘ailable which Ravi likes, Nee “ Mrs a baie te atm in ‘Business Studies’ asked three student of her class-X1 each Ronit’ tr. She ab ath eld ete ao ase ee ppperteniy of what he had to sy, Rah aid ave wold ne ea he for which trained and ld be easly alae. Lat of ll, Ani, expresing he stat right biave ative Me'ael Kumar w entablih One Person Problems of Ravi, OPG has all the characteristics * the business specialist gave this advice (i) Kanika : Liabilities of Owners Gi) Rahul : Continuity and Stability ii) Anvi : Facility in Formation The two friends, Kritika and Sonam started a business by the name of ‘Kriso Fancy Dress Sho} Bath of them snsesed equa ctl inthe buses th da oth hea ae: domestic circumsiances, Sonam had placed one condition before Kritika that if unfortunately they suffered a heavy lass in their busines, she would not be abe to give anything except the capital Imuesied in the business, Krtika had accepted this condition. Their business was gradually growing well. One reason for this was that in schools the children were asked to come in fancy dreses on afferent occasions. They were fully satisfied with their business. (@) To what form of business organisation is concerned the above paragraph? (b) The knowledge of what factor of the form do we get as identified in the part (a). (o) Writeabout ewo typesconcerned with the factor identified inthe part (b) as described in the paragraph. [+++] - (a) Partnership organisation (b) Types of Partnership (Q) (i) General Partnership (ii) Limited Partnership 5, Pankaj Gupta, Monica Bharti and Komal Sapra all the three together established a Partinership Firm. They named their Firm, ‘Saheli Garments’, The capital of % Twenty Lac in total was invested in it. The ratio of the capital was 5 : 3 : 2 respectively. The ratio of Profit-Loss of the three was equal, The father of Monica Bharti, one of the partners of the Firm, Shri Bhola Ram, separately owned a shop of Readymade Garments. The three partners had distributed the work among themselves. Pankaj Gupta was looking after the finance department, Monica Bharti, the purchase department and Kamal Sapra, the selling department. Whenever Monica went out of the ity to purchase goods, she would purchase readymade garments of the latest design for her father’s shop and readymade garments of the old/obsolete design for ‘Saheli Garments’. As @ result, ‘Saheli Garments fell behind in the competitions going on in the market, On the other hand, Bhola Ram Bharti’s business progressed more and more day by day. The business of ‘Saheli Garments? was on the decline, but both the other partners were unable to see into the disloyalty of Monica. On the other hand, looking at the loss being suffered by the Firm, Komal Sapra decided to dispose of his share in the Firm to Gunjan. ‘The other two partners were unaware of this decision. Pankaj Gupta was the only partner who was working honestly. On the whole, it maybe said that the future of ‘Saheli Garments’ appeared to be dark Scanned with CamScanner(a) The knowledge of what factor of partnership organisation is being conveyed: the above parageaph? entified in (a) Which have b quoting the relevant tines, Ans. (a) Characteristics of partnership organisation, )) (“Whenever Monica went out of the city for ‘Saheli Garments @ Unmost Good Faith i) “On the other hand decided to dispose of his share in the firm to Guy @ Restriction on Transler of Interest 6. 1) Delhi's ‘Golden Garden’, some people used to go for a walk in the morning. After the walk, would often sit together and discuss the subjects like Politics, Demonetisations, Elections, Me prices of different goods, ete, There were about fifty persons in this group, One day instead of subjects, their focus of discussion was ‘Market Prices of Different Goods’. During the discus the emphasis laid on the point was that goods become very coslly by the time they reach the consut after getting transported from the producers. Gonsequently, everyone's budget is going wrongs get rid of this problem, some people suggested that they should join together to form society. Society would sell the goods to all the members as per their requirement after buying them in a Guantity directly from the producers. Doing so would enable them to get rid of the profit eamed by the middlemen. This suggestion was appreciated by one and all. AU of them were as | Become themselves members of the society and encourage other eople too to become members. Hime 190 members assembled and the society was formed. The idea of forming a society immedi | Proved to be successful, All the members heaved a sigh of relief. Now their budget became bala | A special characteristic ofthis society was that apart from its members it also sold goods to the __ people of society at cheaper rates. All of them were very happy with the formation of society (2) What type of society formed is it, which the reference is made in the paragraph '(b) Under what Act, the society might have been formed? (©) What might have been the liability of the members of society? (d) Identify any one value conveyed by the society to society. (@) Consumers’ Cooperative Society (b) Cooperative Society Act-1912 (©) Limited Liability (d) Relief from Profiteering Preeti Wadhwa, Nitish Malik, Rahul Saini and Mohit Khatri are four partners in a Firm. fame of the Firm is ‘Four Friends Pustak Bhandar’. The latest books of all the subjects a ape at this Pusiak Bhandar. AIL the four partners decided that the books equal to the a of? 10% of the total profit of the firm they would distribute among the poor children every year, welcomed this decision of theirs very much. It had a very positive effect on the goodwill Mohit Khatri was the youngest ofall the partners of the firm, He was now 16 years of The financial position of Rahul Saini was not good. He had joined the firm on the condition would be a partner only of profits of the firm, Similarly, Nitish Malik also continues to be a ion. He joined the firm with the condition that his name would not be made publi ners were committed to make their business reach the topmost level of success. inall the activities of the Firm, but the Administrative activity ofthe firm was Wadhwa and Nitish Malik only, he information on the partners imparted in the above paragraph. ur partners on the basis of the identification given in the 7 {L Scanned with CamScannerForms of Business Organisations Partnership in Py (iv) Mobit Khatri: Minor Partner ed y ee or tc dainty set up a public company. This company would be set up loce were the Gly fle were suffering from unemployment. All of them jointly selected asin’ ey on ld run its business and where the ‘company's registered office would be se ™p i one a she advice of specialists, it was also decided what method would be a fo Bi we and Allotment of shares, All the friends wanted their company to have a Soe the ery name aeihe eele should get immediately attracted towards its products 11 ws felt that the vary nme Of the company could become a reason for ts recognition. For the name of the compo they ha several options before them. After a Uiorough consideration, he compen tus named “Trimet Limited. Before the registration ofthe compang, the method of Ratification af the contracts to be entered into by the company was alse decider Besides, all the rote jointly completed the remaining formalities of the setting up ofthe company. (a) The information of which two documents i b) the company in the paragraph above? (b) Quoting relevant lines identify two points each of the two documents identified about the setting up of the company. [244] (a) (i) Memorandum of Association Gi) Articles of Association (b) Memorandum of Association () “All of them jointly selected .......... would be set up.” tuation Clause (ii) After a through consideration .. . was named “Trimurti Limited’ @ Name Clause Articles of Association @ a with it, with the advice of specialists............ for the issue and allotment of shares.” rofit only obtained by us from the setting up of, (ii) “Before the registrations of the company was also decided.” iupur Nagpal, after completing her M.B.A. studies, began to help her father, Shri Bhushan Nagpal, in his business. The business with a limited capital investment, was running successfully. All the workers were happy. Nupur wanted to use the modern business techniques in every area of business; namely, purchase, sale, production, finance, etc. In fact, she wanted to implement the methods, which she had studied in her M.B.A., in her business, As soon as she started interfering in the business with her latest techniques, the workers began to protest against her. Looking at the increasing protest against herself, she became disappointed. Ultimately, she gave up her business and started working in another company. In the business such circumstances were created that even her father could not take any balanced decision. Good workers began to leave the business. The goodwill of business in the market went on declining. In no time, the liabilities of business became many times more than his assets. On account of the pressure exerted on him by the creditors, Mr Nagpal cleared the debts of business by disposing of his domestic properties. Mr Nagpal could nat bear with this situation and owing to his heart failure, he died. Ultimately, the business got closed. (a) To which form of business organisation is concerned the above paragraph, and the information of what factor is being conveyed by it? (b) Quoting the relevant lines write about the four points of the factor identified in (a). (2+4] Scanned with CamScannerAns. (a) (i) Sole Trade 10, Dimple Sahukar opened a Boutigue along with (ii) Limitations of Sole Trade (b) (i) “The business, with a limited capital was running successfully. © Limited Resources of Capital (ii) “In the business, such ‘could not take any balanced decision © Imbalanced Manai iii) "On the account of the pressure @ Unlimited Liability iv) “Ultimately got closed ment disposing of his domestic properties? @ Temporary Existence ten workers. It was named ‘Raja-Rani Boutiques Novproblem of am type was faced in opening the Boutique. At her Boutique special dreses Made Pee oe es wien, Several her Bovtiqus wer aso herein the mar. Dei Jhee being a lot of competition, ‘Raja-Rani’ Boutique was earning a good profit. Since all tie profit went into the proprietor’ pocket, she was getting inspired to work with great efficiency. Wil fhe increase in workload, the number of workers was increased from 10 to 20. Since the proprielon hada direct contact with the workers, there eas no scope for any sor of carelessness. Now, including Dimple, there were 21 persons working in the Boutique. All of them were very happy. In this way her business was running very well. One day, unfortunately, the Boutique caught fire due to short Lez cireuit. Consequently, Dimple had to suffer a heavy loss. The circumstances deteriorated so muh that Dimple had to dispose of her personal properties to repay the Boutique’s debts. Im order to eva Rite the Boutique, Dimple had to work sery hard and it took a long time. Zi (@) To what form of business organisation is concerned the above paragraph? (b) The information of which two factors of the form of business organisation identified in (a) is being conveyed? (©) Quoting the relevant lines, write about four points in all of the factor identified in ). [tr ve4) ‘Ans. (a) Sole Proprietorship/Sole Trade © (b) Advantages and Limitations of Sole Trade (0) Advantages ( “No problem of. opening the Boutique.” ' ‘© Convenience in setting up ii) “Since all the profit to work with great efficiency.” © Direct Inspiration (iii) “Since the proprietor had a direct .......... any sort of carelessness.” © Personal Control Limitations (iv) “The circumstances deteriorated to repay the Boutique’s debts.” 2 © Unlimited Scanned with CamScanner