Forms of Business Organisations Test - 2

Corporations allow for the separation of ownership and management. That means that owners do not need to be managers and managers do not need to be owners. It is often the case that someone is both. In most small corporations, the owners typically manage the company but it is not necessary that owners run the company or are even involved in the day-to-day operations of the company.

This means the self-acquired property of Karta may be attached to pay business debts.

Cooperatives are run in a democratic manner, the affairs are manged by the elected managing committee through One-Man-One-Vote.

beacause shareholders are the real owner of JSC but they cannot be present in all meeting so they elect BOD as their representatives.

Rule 10 of the Companies (Miscellaneous) Rule, 2014 provides that no partnership shall be formed, consisting of more 50 persons.  so, limit as of now is 50 partners.

Since Sole proprietor is the sole owner who is responsible for all the business affairs. If the business is successful, he receives all the business profits as a direct reward for his risk bearing.

shares are  the smallest  part of share capital which can be transferred freely from one shareholder to anothher person (except in a private company).

the JHF business is managed and controlled by the eldest male member of family known as Karta.

Housing cooperative societies help people with limited income to construct houses at reasonale costs.

Secret Partner contributes capital, takes part in theh management, shares its profits and losses and has unlimited liability towards the creditors.