Forms of Business Organisations Test - 66

A sleeping partner may not contribute in business decision making but is bound by acts of all other partners. He has unlimited liability in business.

Partnership gets automatically dissolved on the death retirement, insanity or insolvency of any of its partners. However if the remaining partners desire to continue, then they may do so on the basis of a new agreement.

The main disadvantage of a general partnership is the unlimited liability of the partners. This means that each partner is personally liable for the debts and obligations of the business. The connecting line emphasizes the direct risk to the personal assets of partners, such as savings and property, in case of business liabilities or debts.

A housing cooperative aims to provide residential accommodation to its members at reasonable rates. This distinguishes it from other types of cooperatives, such as consumers cooperatives, credit cooperatives, and producers cooperatives, which have different primary objectives and focuses.

Ease of starting a business: Sole proprietorships are easy to establish and have minimal legal formalities compared to other business structures.

Being your own boss: Sole proprietors have full control over decision-making and operations of the business, allowing them to be their own boss.

Pride of ownership: Sole proprietors take pride in owning and running their business independently, with a sense of ownership and responsibility.

Therefore, all three options are correct advantages of a sole proprietorship.

A partner who is not actively involved in the partnership but lends their name for public relations purposes is a nominal partner. They do not participate in management or operations and are included in the partnership for credibility or strategic reasons. This role is symbolic, and nominal partners do not have a significant role in decision-making or business activities.

The board of directors of a joint stock company is elected by the shareholders. Shareholders are the owners of the company, and they exercise their rights to elect the board of directors during the company's annual general meetings or other specified periods. The board of directors is responsible for making strategic decisions, overseeing management, and representing the interests of the shareholders in the company's affairs.

In Limited Partnership, the liability of at least one partner is ulimited. All othher partners may have limited liability. Continuity of Limited Partnership does not get affected by thhe death, lunacy or insolvency of the partner with limited liability. 

A credit cooperative, also known as a credit union, is a cooperative society that focuses on providing financial services like loans, savings facilities, and other banking services to its members.

A partner whose association with the firm is unknown to the general public is called a secret partner. Unlike active partners who are involved in management, sleeping partners who contribute capital but are inactive, or nominal partners who are partners in name only, secret partners maintain a hidden role in the partnership.