Business Studies

Forms of Business Organisation

Question:

Explain the contents of Memorandum of Association.

Answer:

Contents of Memorandum of Association: The memorandum must contain the following clauses:

  1. The Name Clause: It contains the name of company with which the company will be known.
  2. Registered Office Clause: It contains the name of the state, in which the registered office of the company is proposed to be situated.
  3.  Objects Clause: It defines the purpose for which the company is formed. It is further divided into two sub-clauses: (1) the main objects (2) other objects.
  4. Liability Clause: It states that the liability of members is limited to the amount unpaid on shares owned by them.
  5. Capital Clause: It specifies the maximum capital, which the company will be authorized to raise through issue of shares.
  6. Association Clause: In this clause, signatories to the memorandum, state their intention to be associated with the company and give their consent to purchase qualification shares.
previuos
next

Forms of Business Organisation

Q 1.

X is interested in the floatation of a company. Briefly discuss the steps he should take.

Q 2.

What is the role of Karta in Joint Hindu Family business?

Q 3.

Compare the status of a minor in a Joint Hindu Family Business with that in a partnership firm.

Q 4.

What is meant by ˜partner by estoppel'? Explain.

Q 5.

Define promoter. What are the functions of a promoter?

Q 6.

Explain meaning, features, merits and demerits of Sole Proprietorship.

Q 7.

Explain procedure of registering a partnership firm.

Q 8.

Explain different types of partners.

Q 9.

Explain procedure of registering a partnership firm.

Q 10.

Explain meaning, features, merits and demerits of partnership firm.

Q 11.

What are the steps required for raising funds from public?

Q 12.

What do you mean by incorporation of a company? What are the steps involved in corporation of a company?

Q 13.

Explain meaning, features, merits and demerits of joint stock company.

Q 14.

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

Q 15.

State the important privileges available to a private company.

Q 16.

Define Articles of Association. What are its contents?

Q 17.

Is registration of partnership firm compulsory? What are the consequences of non-registration?

Q 18.

For which of the following types of business do you think a partnership firm of organization would be more suitable, and why?
(i) Grocery store (ii) Medical store
(iii) Legal consultancy (iv) Craft centre
(v) Internet cafe (vi) Chartered accountancy firm

Q 19.

Explain the contents of Memorandum of Association.

Q 20.

Distinguish between a Joint Hindu family business and partnership.

Q 21.

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

Q 22.

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

Q 23.

Explain the concept of mutual agency in partnership with suitable example.

Q 24.

Distinguish between a Joint Hindu family business and partnership.

Q 25.

For which of the following types of business do you think a sole proprietorship firm of organization would be more suitable, and why?
(i) Grocery store (ii) Medical store
(iii) Legal consultancy (iv) Craft centre
(v) Internet cafe (vi) Chartered accountancy firm

Q 26.

Explain the meaning, features, merits and demerits of cooperative society.

Q 27.

Explain different types of partners.

Q 28.

Explain the following terms in brief:
(i) Perpetual succession (ii) Common seal
(iii) Karta (iv) Artificial person

Q 29.

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

Q 30.

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

Q 31.

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

Q 32.

Differentiate between:

  • Memorandum of Association and Articles of Association.
  • Private and Public Company