Forms of Business Organisations Test - 2

Private company can work with just two directors as compared to three directors under public company.

Joint Hindu Family Business is governed by the provisions of the Hindu Law ( the Hinud Succession Act, 1956)

By its Articles of Association Private Company prohibits any nvitation to the general public to subscribe for its shares.

shares are  the smallest  part of share capital which can be transferred freely from one shareholder to anothher person (except in a private company).

Cooperatives are run in a democratic manner, the affairs are manged by the elected managing committee through One-Man-One-Vote

in the eyes of the law, owner and the business are considered one and the same.  so, sole proprietorship does not enjoy continuity of life. Illness, death or insolvency of the proprietor affects the business and can lead to its closure.

Housing cooperative societies help people with limited income to construct houses at reasonale costs.

According to Sec (3) of Companies Act 2013 the maximum limit of members in Private Co. is 200

A minimum of 10 adult persons(18 years and above)  are required to form a cooperative society.

Partner by holding out is one who is represented as a partner and he does not deny such impression, despite becoming aware of that fact.  Such a person becomes liable for the debts of the firm to outsiders who have sold goods on credit or lent money to the firm on the basis of such representation