Forms of Business Organisations Test - 67

The application for registering a partnership firm must include essential details such as names and addresses of the partners, duration of partnership, and other relevant information. Providing these details ensures transparency and compliance with legal requirements during the registration process.

The capital of a company is divided into a number of parts, each one of which is called a "share." Shares represent ownership in the company and entitle shareholders to certain rights, such as voting at general meetings, receiving dividends, and participating in the company's profits. Shares can be of different types, such as equity shares, preference shares, or other classes, each with its own characteristics and privileges.

A company is the structure where ownership (shareholders) and management (directors/officers) are separated as per law, a key aspect of corporate governance. This separation distinguishes companies from other business organizations like partnerships and sole proprietorships.

Corporations, as separate legal entities from their shareholders, often boast the largest sales volumes due to their capacity to attract investments and issue stock. This ability, combined with access to capital markets, allows corporations to raise substantial funds for expansion and investment, leading to significant sales revenue. Consequently, corporations typically outshine other forms of business organizations, such as partnerships, cooperatives, and small businesses, in terms of sales volume.

Limited partners in a limited partnership contribute funds to the business but generally do not participate in the day-to-day management. Their liability is limited to the extent of their investment.

One of the key features of a private limited company is that it restricts the right of its members to transfer shares, while a public limited company has no such restriction. This limitation on share transfer is a characteristic feature that sets private limited companies apart from public limited companies.

In an LLP, all partners have limited liability protection, which means they are not personally liable for the debts and obligations of the partnership, unlike in a general partnership where partners have unlimited personal liability.

A private company is required to have a minimum of two directors as per the legal requirements. This is in contrast to a public company, which must have a minimum of three directors. The lower requirement for directors in a private company allows for more streamlined decision-making processes and operational efficiency, especially in smaller organizations where a smaller board of directors can effectively manage the company's affairs.

The Indian Cooperatives Act 1912 defines Cooperative Societies "As a society which has its objectives for the promotion of economic interest of its members in accordance with cooperative principles."

A consumers cooperative is a cooperative society where members collectively purchase goods or services for their own consumption, often at lower prices or with other benefits.