Forms of Business Organisations Test - 65

One of the limitations of a partnership firm is its relatively limited ability to raise capital compared to corporations. Partnerships may find it challenging to attract large investments or access capital markets.

Farmer's cooperative societies are established to protect farmers' interests by providing them with better inputs like quality seeds, fertilizers, and machinery at affordable prices. The main goal is to increase productivity and reduce input costs by leveraging collective resources and economies of scale.

A notable advantage of a private limited company is that it can commence its business activities as soon as it receives the certificate of incorporation from the authorities. Unlike public limited companies that may require a prospectus and minimum subscription, private limited companies can start operations promptly after obtaining the necessary legal recognition.

Privately held corporations are not listed on stock exchanges and have fewer shareholders. However, they often face stricter reporting and disclosure requirements due to regulatory considerations.

Incorporating provides the most important benefit of limited liability of shareholders. This means shareholders are not personally liable for the debts and obligations of the corporation, protecting their personal assets. While incorporation can also lead to benefits like more money for investment, increased flexibility, and shared management, limited liability is often the primary reason businesses choose to incorporate.

A producers cooperative is formed by individuals or businesses involved in producing goods or providing services. Members collaborate to improve production efficiency, marketing, and distribution of their products or services for mutual benefit.

Registering a partnership firm provides legal recognition to the entity, establishes its existence as a separate business entity, and ensures that it can exercise legal rights, enter contracts, and sue or be sued in court.

The Hindu Succession Act of 1956 was enacted by the Parliament of India to modify, codify, and secularize the laws concerning intestate succession among Hindus, Buddhists, Jains, and Sikhs. This Act aimed to consolidate the diverse inheritance and succession rules into a unified and comprehensive legal framework.

The form of business organization that has the largest sales volume is a Corporation. Corporations are typically larger in scale and have access to more resources and markets, allowing them to generate significant sales revenue compared to other forms of business organizations like partnerships, cooperatives, or multinational companies.

A Joint Stock Company is known for its continuity of existence, unlike partnerships or sole proprietorships where the business continuity can be affected by the death or withdrawal of partners or owners. Joint Stock Companies have perpetual succession, meaning their existence is not affected by changes in ownership or management.