Advertisements
Advertisements
Question
Write short answer of the following.
State the merits of partnership firm.
Solution
The following are the merits of a partnership firm:
i. Secrecy of information: It is not mandatory for a partnership firm to publish its annual accounts. A partnership firm can thus, maintain complete secrecy of its information.
ii. Easy formation: A partnership requires an agreement (oral or written) between two or more partners. This eases its formation.
iii. Risk sharing: The risks in a partnership firm are shared jointly by all partners. This reduces the burden on each partner.
iv. Balanced decision making: Decision making is balanced, as all decisions are taken collectively by all partners.
v. Simple dissolution: The partnerships are easy to dissolve as the dissolution requires either a 14 day notice by any of the partners or the completion of the specified time period for which the partnership was formed.
vi. Greater flexibility: A partnership firm enjoys greater flexibility because not many restrictions are laid down under the Partnership Act.
APPEARS IN
RELATED QUESTIONS
The maximum number of partners for a firm carrying on banking business is .............. .
Multinational companies have a network of subsidiaries in _________.
Select the proper option from the options given below and rewrite the completed sentence.
Business organization which is controlled by Hindu succession Act is known as ________
Select the proper option from the options given below and rewrite the completed sentence.
From the point of continuity ________ business organizations is the most suitable.
Write a word or a phrase or a term which can substitute the following.
An elected body of representatives of a co-operative organization for its day-to-day administration.
Write a word or a phrase or a term which can substitute the following.
The commercial organization which has maximum secrecy.
Write short note on the following.
Demerits of Co-operative society
State with reasons whether the following statement true or false.
The maximum number of members in a Joint Hindu family is 20.
State with reasons whether the following statement true or false.
Company form of organization has developed before industrial revolution.
State with reasons whether the following statement true or false.
Share holders can manage the business.
State with reasons whether the following statement is true or false.
The owner of the sole proprietorship is the sole decision maker of his business.
Write short answer of the following.
State the demerits of proprietorship.
Write short answer of the following.
State the point of choice of forms of business organization.
Long answer type question.
Define a Joint Hindu family firm. Explain its merits and demerits.
Long answer type question.
Define Co-operative society. Explain its features.
Discuss the factors that determine the choice of form of organisation.
