Forms of Business Organisation Business Studies - Forms of Business Organisation

The Head of the joint Hindu family business is called:

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

Name the law which governs Joint Hindu Family Business.

Which of the following has unlimited liability in business?

In HUF, members of the family other than the karta are known as:

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

1. Active partner.
2. Sleeping partner.
3. Nominal partner.
4. Secret partner.

Define business.

Mention any two documents that are needed to be filed with Registrar for incorporation of a company.

Why is innovation an important objective of business?

Which form of organisation is most suitable in case the business requires huge amount of capital?

Nandini, in order to promote local craftsmen of Gujarat, formed an where in the persons voluntarily associate themselves to promote common economic interest. The basic purpose of this organisation was to help these craftsmen to find market for their products. It had a managing committee that was elected on the basis of 'one member one vote'. organisation
On the basis of the given information, answer the following questions :
(a) Identify the form of business organisation set up by Nandini.
(b) Quoting the lines form the above para, state any two features of this form of organisation.

After completing his studies Manav started his own business. He invested ₹2,00,000 as capital which was given to him by his father. He obtained a loan of ₹1,00,000 from his elder brother Ravi, who was working as an assistant manager in Bank of Baroda. In the first year he incurred a loss of ₹50,000 and had to pay to his suppliers their outstanding bills. This created a financial problem for him and he had to take a loan of ₹1,00,000 from the Bank of Baroda on the personal guarantee of his brother. He started doing hard work, lowered the prices and informed his customers about the qualities of goods sold by him. Because of this the sales increased four times and he earned a net profit of ₹75,000 in the second year. His two friends Aman and Suresh showed interest in joining his business. They signed a partnership deed where they decided to share profits equally. Aman and Suresh invested ₹3,00,00 each but Suresh said that he will not take active part in working of the business because of his job.
On the basis of the given information, answer the following questions:
(a) Identify the form of business organisation started by Manav.
(b) Identify the form of business organisation formed after joining of his friends Aman and Suresh.
(c) What is a liability of Suresh in business formed in part (b) above?

Nature Products Ltd. is a well known company specialising in organic farming. It entered into a contract with 'Rastogi Ltd.', a company dealing in organic pulses and spices to supply goods worth ₹20 Lakh to them before 'Rastogi Ltd.' could obtain Certificate of Commencement.
On the basis of the given information, answer the following questions:
(a) What is the type of contract that a company may enter into before it gets Certificate of Commencement of Business known as?
(b) Can Nature products Ltd. recover the price for its supplies? Give reasons.

Aniket after doing his fashion designing course, started an export business in the form of a private company along with his uncles Mr. Manish and Mr. Rajnish. They helped him to assemble resources, prepare necessary documents, give a name and perform various other activities to get a company registered and obtain the necessary certificate enabling the company to commence business. Later on, he came to know that Mr. Manish had forged the signatures of Mr. Rajnish on the Memorandum of Association. He is now fearing that the Incorporation of the company will be considered invalid.
On the basis of the given information, answer the following questions:
(a) What will Aniket, Manish and Rajnish be called as?
(b) According to you, will the incorporation of the company be considered as invalid? Why or why not?

Sparsh Mart Ltd. which was earlier operating only in Ahmedabad decided to expand its operations in two other states. So to get required funds, it invited general public to subscribe for its public issue of ₹50 crores through an initial public offer (IPO). It received applications for shares of ₹40 crores.
Can the company proceed with allotment of shares? Why or why not? Give reasons in support of your answer.

Kumar has completed his senior secondary examination from Central Board of Secondary Education. After the results had been declared his father asked him what he would like to do in the future. Kumar was undecided and did not answer. His father advised him to start his own business and to pursue his studies through distance learning mode. Kumar reluctantly agreed.
He entered into a partnership agreement with one of his school friend, Gurmeet and his distant Uncle. They decide to start a business of cold drinks with traditional mughlai aroma in a fashionable crowded street of Bengaluru. Because of the novelty of their product their sales increased on daily basis and they earned good profits. But Kumar and Gurmeet are very sad due to sudden demise of their uncle. On suggestion of Kumar's father they decided to admit 13 years old son of their uncle in partnership on 1 January 2018.
On the basis of the given information, answer the following questions:
(a) What is a status of his uncle's son in partnership?
(b) Will his status change after attaining majority?

Aarti was born and brought up in Mumbai. After completing her higher studies, she started working as an assistant architect in a leading company. After a few years of that now she wants to set up her own consultancy and undertake independent projects. She discusses her plans with her father.
Her father suggests that she should carry on with the job because starting independently will mean becoming a sole proprietor and that would bring along problems of unlimited liability. But Aarti was not convinced to stay in the job.
Then he suggested that the second option for her could be to form a partnership or a Pvt. Ltd. Company, with a friend. But Aarti did not like this idea either, as she did not want any form of interference from anyone. Aarti approached a consultant and discussed her concerns with him. The consultant offered her a solution and Aarti was happy with that idea.
On the basis of the given information, answer the following questions:
(a) Which form of business organisation would have been suggested by the consultant?
(b) Explain the benefits of this form over sole proprietorship and private company

Identify the type of partner highlighted in the following situations:
(a) Partners who take actual part in carrying out business of the firm on behalf of other partners.
(b) Partners whose association is not known to the general public.
(c) The partner liable to outsiders for the debts given to the firm if it is given because of the belief that the he is a partner in the firm.
(d) The partner who accepts by his words or conduct that he is a partner in the firm.

The Amul model has helped India to emerge as the largest milk producer in the world. More than 15 million milk producers pour their milk in 1,44,500 dairy establishments across the country. Their milk is processed in 184 District establishments and marketed by 22 State Marketing Federations, ensuring a better life for millions everyday. The story of Amul started in year 1946 with a group of farmers coming together to gain access to the market and there by ensure maximum returns for their efforts.
On the basis of the given information about Amul, answer the following questions:
(a) Identify the form of business organisation started by the farmers.
(b) Explain any two features of form of business organisation identified in part (a).
(c) What is the procedure required to set up this form of business organisation?

Sahara India Pariwar owns many companies. Sahara India Life Insurance Company Limited is the first wholly Indian owned private life insurance company. It offers an exhaustive range of competitive products/plans that caters to everyone from all segments along with prompt and quality customer services and support. Sahara Asset Management Company Pvt. Ltd. is a professional mutual fund house which manages many mutual fund schemes.
On the basis of the given information about Sahara India Pariwar, answer the following questions:
(a) Sahara India Pariwar owns both public and private companies. How is a public company different from a private company?
(b) Give two similarities between company and cooperative society form of business organisations.

Identify the type of Co-operative societies highlighted in the following situations:
(a) Co-operative societies formed to protect the interest of general consumers.
(b) Co-operative societies formed to protect the interest of small producers.
(c) Co-operative societies formed by small producers and manufactures who find it difficult to sell their products individually.
(d) Co-operative societies established to protect the interests of farmers for providing better inputs at a reasonable cost.
(e) Co-operative societies formed to provide financial support to the members.
(f) Co-operative societies formed to provide residential houses to members.

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 a company to better manage the business. She also has plans to open branches countrywide.

On the basis of the given information about Kiran, answer the following questions:
(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 form of the organisation?
(d) What legal formalities will she have to undergo to operate business as a company?

A, B, C and D are partners in a firm with unlimited liability. But after 1991, A, B and C decided that they did not want to bear unlimited risk. With the consent of D, they made amendments in the partnership deed and changed their liability. Now A, B and C are responsible for the losses only to the extent of the capital invested by them.
On the basis of the given information, answer the following questions:
(a) Name the two types of partnership formed before and after 1991.
(b) State four differences between them.

Rahul Aggarwal is working as a CEO in a reputed company having head office
in Mumbai. The company is following a dynamic approach and thus keeps launching innovative products in the market. He know that the shares of his company are not freely transferrable. The company is also concerned about its employees and is offering them good working conditions along with other non-financial benefits. Rahul is concerned about education of children living in slums of Mumbai and thus he is planning to donate 4% of his companies profit for their education. As the company was able to earn good profit it has declared a dividend of 10% for its shareholders and transferred residual profits in reserve.
On the basis of the given information, answer the following questions:
(a) Name the type of company mentioned in the above case.
(b) State any two demerits of company form of business organisation.
(c) Identify any two values which the company is trying to communicate to the society.

Indian Coffee House is a restaurant chain in India. It has strong presence across India with nearly 400 coffee houses. These are governed by managing committees elected by employees. These are completely owned and managed by employees only. These have also received appreciation and support from Government and public. The voting rights in these are neither tied to investment nor patronage.

On the basis of the given information about Indian Coffee House, answer the following questions:
(a) Which form of business organisation is highlighted in the above case?
(b) Discuss any three merits of the business organisation identified above.
(c) Name any two types of business organisation identified in part (a) above?