CHAPTER - 2
FORMS OF BUSINESS ORGANISATION Q7. Prabhat and Rishi are doing separate business in installing centralised air
Q1. Pankaj is running a chemist shop under the name ‘Bansal medicos’ in ashok vihar
market. He takes all the decisions about the business himself and there is no
interference from others. He also earns good profit as a direct reward for his risk
bearing.
Identify the form of business organisation and briefly explain its limitations. (3)
Q2. “Karta is the most active member in the hindu undivided family business.”
Comment . (3)
Q3. Identify the type of partner highlighted in the following statements -
(a) This partner does not take part in day to day activities of the business.
(b)He gives an impression of his being a partner to others by his words of conduct.
(c) He allows to use his goodwill to benefit the firm and can be represented as a
partner.
(d)He is represented as a partner and in spite of knowing this, he does not deny
such an impression.
(e) His association with the firm is not disclosed to the general public.
(f) This partner is also known as a dormant partner.
(g) This partner takes an active part in carrying out business of the firm.
Q4. Ankit, Kishore and Shivam are partners in a partnership firm manufacturing water
coolers. Recently Shivam entered into a contract with Mayank for purchase of raw
materials worth ₹ 10,00,000 without the knowledge of Ankit and Kishore. Now,
Mayank is asking for the payment and Ankit and Kishore are of the view that only
Shivam is liable to make the payment and they cannot be held liable. Are they correct
in refusing the payment? State and explain the related feature of the partnership form
of business organisation. (3)
Q5. Rakesh started a garment shop a few years back. Due to continuous losses in the
business, he decided to close it down. However, he owes ₹ 2,00,000 to Aniket from
whom he had purchased garments on credit. His business funds are not sufficient to
repay the debt. Can Aniket recover his dues from the personal assets of Rakesh. (1)
Q6. Even Though registration of partnership firm is not compulsory, still partners
prefer to get it registered. Why? (3)
conditioning units in Mumbai. They entered into a partnership contract to install a
centralized AC unit in a hotel in Shirdi. Identify the type of partnership being
highlighted in the given case. (1)
Q8. After completing the graduation, three close friends (Gopal, Shankar and Vinod)
decided to start a partnership business of manufacturing mobile accessories. However,
all three of them are confused about the type of partnership they should start.
● Gopal wants that the partnership should be such that it can be brought to an end
at the desire of any partner.
● Shankar wants to do the partnership business for a period of three years only.
● Vinod wants that his liability should be limited in the business.
Identify the types of partnership that the three friends are referring to. (3)
Q9. Three doctors (Dr. Sahil Gupta, Dr. Mayank Aggarwal and Dr. Karan chopra)
decided to start a charitable clinic. Will it be considered a partnership business? (1)
Q10. Fill in the blank with appropriate words -
(a) __________ cooperative society is formed by the consumers for obtaining good
quality products at reasonable prices.
(b)__________ cooperative society is formed by small independent producers to
sell their output through one centralised agency.
(c) __________ is formed by people who want to procure residential
accommodation at lower costs.
(d)___________ cooperative society is formed to provide short term financial
assistance to the members.
Q11. Kanika is a shareholder in a company holding 6,000 shares of ₹ 10 each on
which she has already paid ₹ 8 per share. What will be her liability in the event of
losses or company’s failure to pay debts? Also, state the relevant feature of joint stock
company. (3)
Q12. ‘Shares of a joint stock company are freely transferable’. Explain. (3)
Q13. Is it compulsory for partners to have a written agreement? (1)