Forms of Business Organisations Test - 63

A person, who is not actually a partner of a firm but knowingly allows himself/herself to be represented as a partner of the firm is called a partner by holding out. Such a person can be held liable for the repayment of debt extended to the firm due to such representation.

Patnership at will continues at the will of all the partners. Business continue till all the partners mutually agree to do so. Business is discontinued when one or more partners wish to withdraw themselves as partners from the business.

In a Cooperative Society, there is typically no maximum limit on the number of members, and at least 10 adults are required to form a cooperative society. Cooperative societies are formed to meet the common needs and aspirations of their members, and they can have a large number of members depending on the nature and purpose of the cooperative. On the other hand, joint Hindu families, partnerships, and companies may have specific legal requirements or limitations on the number of members or partners.

Partnership business is not bound by any law.  It is not required to submit or publish their financial results.  Also all the important decisions and major business activities are carried by partners only.  Hence the partnership business is able to maintain confidentiality of information relating to its operations.

Mutual agency relationship means each partner is the owner as well as the agent of the firm and agent to other partners. It means, every partner acts in the capacity of an 'agent' as well as a 'principal'.

A cooperative society is the association of people who united voluntarily to meet their economic, cultural and social needs. Decision making in this society takes place by following the main principle i.e. "One man, One vote".

The Karta in a Joint Hindu family business is typically the head of the family and has unlimited liability for the debts and obligations of the business. This means that the Karta's personal assets can be used to settle business debts if the business assets are insufficient. Joint Hindu family businesses operate under the principle of joint and several liability, where all members, including the Karta, share unlimited liability for the business's liabilities.

A nominal partner is one who does not have interest in the trade or its profits. But allows the use of his or her name in the firm.

A Joint Stock Company has a separate legal entity, which means it exists independently of its members. This feature allows the company to own property, incur debts, enter contracts, and sue or be sued in its own name, distinct from its shareholders.

A joint venture is a temporary partnership or collaboration between two or more entities to pursue a specific project or business activity. It allows participants to combine resources and expertise for mutual benefit.