Forms of Business Organisations Test - 3

in the eyes of the law, owner and the business are considered one and the same.  so, sole proprietorship does not enjoy continuity of life. Illness, death or insolvency of the proprietor affects the business and can lead to its closure.

Joint Hindu Family Business is governed by the provisions of the Hindu Law ( the Hinud Succession Act, 1956).

According to Sec (3) of Companies Act 2013 the maximum limit of members in Private Co. is 200

A Compay must be registered under Companies act, 1956.

A minimum of 10 adult persons(18 years and above)  are required to form a cooperative society.

By its Articles of Association Private Company prohibits any nvitation to the general public to subscribe for its shares.

Private company can work with just two directors as compared to three directors under public company.

Company has a permanent or perpetual existence, i.e, its existence is not affected by death, insolvency, coming or going of the members.

Partner by holding out is one who is represented as a partner and he does not deny such impression, despite becoming aware of that fact.  Such a person becomes liable for the debts of the firm to outsiders who have sold goods on credit or lent money to the firm on the basis of such representation.

Nominal Partner is actually not a partner but allows the firm to project him/her as a business partner. He/she neither contributes capital nor has any share in business profits or losses. Has unlimited liability in business.