Forms of Business Organisations Test - 48

The right choice of the form of the business depends upon the nature of business, volume of business and the area of operations. Nature of business includes what type of business whether labour intensive or capital intensive. Volume of business means what will be the scale of production large or small. Area of operation includes the geographic are which will be covered by the business.

Hindu Joint family business are the type of business which are run by the members of a joint family under Hindu Succession Act, 1956 to achieve common goals. 

A company is a separate legal artificial body with a name and common seal by the law. According to the Companies Act, 2013, it is compulsory for all the companies to register under the companies act with their memorandum of association.

A co-parcener is any partner who just has share in the firm's profit and loss and does not have any right in the firm's business. Such a partner can not ask for the accounts of the firm under any circumstances. 

Hindu Joint family business are the type of business which are run by the members of a joint family under Hindu Succession Act, 1956 to achieve common goals. 

Hindu Joint family business are the type of business which are run by the members of a joint family under Hindu Succession Act, 1956 to achieve common goals. 

A minor member of the family becomes the member of the joint family business from the day of his birth and has his share in the profits of the business but however they are not liable for the losses of the company. 

A partnership basically refers to the contract between two or more people who have agreed to carry on certain businesses in order to achieve common goals. In the absence of any partnership deed, all the property, rights and interest contribute by the individual partners, all the property acquired in the course of the business, and the goodwill of the business is considered as the property of the firm.

When a partner of the firm agrees to share his own share of profits with an outsider then it is called sub-partners. They have no rights in the firms' business they just have share in the firms profit or loss and therefore other partners are not bound by the sub-partners act. 

A minor can be admitted as a partner in a partnership firm with the consent of all the partners in the agreement where the minor will share only the profits or gains of the firm and he will have no share in the firm's loss. The minor can even inspect the books of accounts of the firm. 

A partnership basically refers to the contract between two or more people who have agreed to carry on certain businesses in order to achieve common goals. Therefore, any change in the nature of the business can be brought forward only by the consent of all the partners mentioned in the partnership deed.

Hence, option (B) is the correct answer.

A partnership basically refers to the contract between two or more people who have agreed to carry on certain business in order to achieve common goals. In the absence of any partnership deed, all the property, rights and interest contribute by the individual partners, all the property acquired in the course of the business and the goodwill of the business is considered as the property of the firm. These properties should be used by all the partners exclusively for business purpose only.